Morgan Hill City Council
April 19, 2023

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advance of the excavation. The detailed plan must show the design of shoring, bracing, sloping, or other provisions to be made for worker protection from the hazard of caving ground during the excavation. If the plan varies from the shoring system standards, it must be prepared by a registered civil or structural engineer. Use of a shoring, sloping, or protective system less effective than that required by the Construction Safety Orders is prohibited.

7.16 New Utility Connections. City will pay connection charges and meter costs for new permanent utilities required by the Contract Documents, if any. Contractor must notify City sufficiently in advance of the time needed to request service from each utility provider so that connections and services are initiated in accordance with the Project schedule.

7.17 Lines and Grades. Contractor is required to use any benchmark provided by the Engineer. Unless otherwise specified in the Contract Documents, Contractor must provide all lines and grades required to execute the Work.

7.18 Historic or Archeological Items.
(A) Contractor’s Obligations. Contractor must ensure that all persons performing Work at the Project site are required to immediately notify Project Manager, upon discovery of any potential historic or archeological items, including historic or prehistoric ruins, burial grounds, archaeological or vertebrate paleontological site, including fossilized footprints or other archeological, paleontological or historical feature on the Project site (collectively, “Historic or Archeological Items”). (B) Discovery; Cessation of Work. Upon discovery of any potential Historic or Archeological Items, Work must be stopped within an eighty five (85) foot radius of the find and may not resume until authorized in writing by City. If required by City, Contractor must assist in protecting or recovering the Historic or Archeological Items, any such assistance to be compensated as extra work on a time and materials basis under Article 6, Contract Modification. Any suspension of Work required due to discovery of Historic or Archeological Items will be treated as a suspension for convenience under Article 13.

7.19 Environmental Control. Contractor must not pollute any drainage course or its tributary inlets with fuels, oils, bitumens, acids, insecticides, herbicides or other harmful materials. Contractor and its Subcontractors must at all times in the performance of the Work comply with all applicable federal, state, and local laws and regulations concerning pollution of waterways.

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(A) Stormwater Permit. Contractor must comply with all applicable conditions of the State Water Resources Control Board National Pollutant Discharge Elimination System General Permit for Waste Discharge Requirements for Discharges of Stormwater Runoff Associated with Construction Activity (“Stormwater Permit”).
(B) Contractor’s Obligations. If required for the Work, a copy of the Stormwater Permit is on file in City’s principal administrative offices, and Contractor must comply with the same without adjustment of the Contract Price or the Contract Time. Contractor must timely and completely submit required reports and monitoring information required by the conditions of the Stormwater Permit, Contractor must comply with all other applicable state, municipal or regional laws, ordinances, rules or regulations governing discharge of stormwater, including applicable municipal stormwater management programs.

Article 8
Payment

8.1 Schedule of Values. Prior to submitting its first application for payment, Contractor must prepare and submit to Project Manager a schedule of values apportioned to the various divisions and phases of the Work. Each line item contained in the schedule of values must be assigned a value such that the total of all items equals the Contract Price. The items must be sufficiently detailed to enable accurate evaluation of the percentage of completion claimed in each application for payment, and the assigned value consistent with any itemized or unit pricing submitted with Contractor’s bid.

8.2 Progress Payments. Following the last day of each month, or as otherwise required by the Special Conditions or Specifications, Contractor will submit to Project Manager a monthly application for payment for Work performed during the preceding month based on the estimated value of the Work performed during that preceding month.
(A) Application for Payment. Each application for payment must be itemized to include labor, materials, and equipment incorporated into the Work, and materials and equipment delivered to the Worksite, as well as authorized and approved Change Orders. Each pay application must be supported by Contractor’s schedule of values and any other substantiating data required by the Contract Documents.

Each application for payment shall be accompanied by completed “Contract Balance Form,” a copy of which is provided at the end of Article 8.

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(B) Payment of Undisputed Amounts. City will pay the undisputed amount due, as certified the Design Professional, within thirty (30) days after Contractor has submitted a complete and accurate payment application, subject to Public Contract Code Section 20104.50. City will deduct a percentage from each progress payment as retention, as set forth in Section 8.5, below, and may deduct additional amounts as set forth in Section 8.3, below.

8.3 Adjustment of Payment Application. City may adjust or reject a payment application, including application for Final Payment, in whole or in part, based upon any of the circumstances listed below. Contractor will be notified in writing of the basis for the adjustment, and will be promptly paid once the basis for that adjustment has been remedied and no longer exists.
(A) Contractor’s unexcused failure to perform the Work as required by the Contract Documents, including correction or completion of punch list items;
(B) Loss or damage caused by Contractor or its Subcontractor(s) arising out of or relating to performance of the Work;
(C) Contractor’s failure to pay its Subcontractors and suppliers when payment is due;
(D) Failure to timely correct rejected, nonconforming, or defective Work;
(E) Unexcused delay in performance of the Work;
(F) Any unreleased stop notice, retained as one hundred twenty five percent (125%) of the amount claimed;
(G) Failure to submit any required schedule or schedule update in the manner and within the time specified in the Contract Documents:
(H) Failure to maintain or submit as-built documents in the manner and within the time specified in the Contract Documents;
(I) Work performed without approved Shop Drawings, when approved Shop Drawings are required before proceeding with the Work; (J) Contractor’s payroll records are delinquent or inadequate; and

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(K) Any other costs or charges that may be offset against payments due, as provided in the Contract Documents, including liquidated damages.

8.4 Acceptance of Work. Neither City’s payment of progress payments nor its partial or full use or occupancy of the Project constitutes acceptance of any part of the Work.

8.5 Retention. City will retain five percent (5%) of the amount due on each progress payment, or the percentage stated in the Notice Inviting Informal Bids, whichever is greater, as retention to ensure full and satisfactory performance of the Work.
(A) Substitution of Securities. As provided by Public Contract Code Section 22300, Contractor may request in writing that it be allowed, at its sole expense, to substitute securities for the retention withheld by City.

Any escrow agreement entered into pursuant to this provision must fully comply with Public Contract Code Section 22300, and will be subject to approval as to form by City’s legal counsel.
(B) Release of Undisputed Retention. All undisputed retention, less any amounts that may be assessed as liquidated damages, retained for stop notices, or otherwise withheld under Section 8.3 or 8.6 will be released as Final Payment to Contractor no sooner than thirty five (35) days following recordation of the notice of completion, and no later than sixty (60) days following acceptance of the Project by City’s governing body or authorized designee, or, if the Project has not been accepted, no later than sixty (60) days after the Project is otherwise considered complete under Public Contract Code Section 7107(c).

8.6 Setoff. City is entitled to set off any amounts due from Contractor against any payments due to Contractor. City’s entitlement to setoff includes progress payments as well as Final Payment and release of retention.

8.7 Payment to Subcontractors and Suppliers. Each month, Contractor must promptly pay each Subcontractor and supplier the value of the portion of labor, materials, and equipment incorporated into the Work or delivered to the Worksite by the Subcontractor or supplier during the preceding month. Such payments must be made in accordance with the requirements of the law, and those of the Contract Documents and applicable subcontract or supplier contract.
(A) Withholding for Stop Notice. City will withhold one hundred twenty five percent (125%) of the amount claimed by an unreleased stop notice, a portion of which may be retained by City for the costs incurred in

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handling the stop notice claim, including attorneys’ fees and costs, as authorized by law.
(B) Joint Checks. City reserves the right to issue joint checks made payable to Contractor and its Subcontractors or suppliers. As a condition to release of payment by a joint check, the joint check payees may be required to execute a joint check agreement in a form provided or approved by City. The joint check payees will be jointly and severally responsible for the allocation and disbursement of funds paid by joint check. Payment by joint check will not be construed to create a contractual relationship between City and a Subcontractor or supplier of any tier beyond the scope of the joint check agreement.

8.8 Final Payment. Final Completion, acceptance of the Work by City, and recordation of the Notice of Completion, and any release required by the Contract Documents are conditions precedent to Final Payment and release of undisputed retention, as set forth above. Contractor’s application for Final Payment must comply with the requirements for submitting an application for a progress payment as stated in Section 8.2, above. Corrections to previous progress payments, including adjustments to estimated quantities for unit priced items, may be included in the Final Payment. The date of Final Payment is deemed to be effective on the date that City acts to release retention as final payment to Contractor, or otherwise provides written notice to Contractor of Final Payment. If the amount due from Contractor to City exceeds the amount of Final Payment, City retains the right to recover the balance from Contractor or its sureties.

8.9 Release of Claims. City may, at any time, require that payment of the undisputed portion of any progress payment or Final Payment be contingent upon Contractor furnishing City with a written release of all claims against City arising from or related to the portion of Work covered by those undisputed amounts. Any disputed amounts may be specifically excluded from the release.

8.10 Warranty of Title. Contractor warrants that title to all work, materials, or equipment incorporated into the Work and included in a request for payment will pass over to City free of any claims, liens, or encumbrances upon payment to Contractor.

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CONTRACT BALANCE FORM
Project Name: _____________________________________
Note: A detailed invoice MUST be attached to this Contract Balance Form.

CONTRACTOR NAME: ____________________________ DATE: ______________________________ MAILING ADDRESS: ______________________________ TELEPHONE NO.: ____________________ ______________________________ FAX NO.: ___________________________ ______________________________ PROJECT NO.: ______________________ INVOICE NO.: _______________________

1. ORIGINAL CONTRACT AMOUNT: $________

2. APPROVED CHANGE ORDERS TOTAL: $________

3. REVISED CONTRACT AMOUNT: (1+2) $________

4. PREVIOUS BALANCE PAID: $________

5. REMAINING BALANCE: (3-4) $________

6. CURRENT PROGRESS PAYMENT DUE: $________
(before retention)

7. 5% RETENTION FROM WORK DONE: (-)$________

8. CURRENT BALANCE DUE: (6-7) $________

9. REMAINING BALANCE OF REVISED
CONTRACT AMOUNT: (5-8) $________
(including retention)

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Article 9
Labor Provisions

9.1 Discrimination Prohibited. Discrimination against any prospective or present employee engaged in the Work on grounds of race, color, ancestry, national origin, ethnicity, religion, sex, sexual orientation, age, disability, or marital status is strictly prohibited. Contractor and its Subcontractors are required to comply with all applicable Federal and California laws including the California Fair Employment and Housing Act (Government Code Sections 12900 et seq.), Government Code Section 11135, and Labor Code Sections 1735, 1777.5, 1777.6, and 3077.5.

9.2 Labor Code Requirements.
(A) Eight Hour Day. Under Labor Code Section 1810, eight (8) hours of labor constitute a legal day’s work under this Contract. (B) Penalty. Under Labor Code Section 1813, Contractor will forfeit to City as a penalty, the sum of Twenty Five Dollars ($25.00) for each day during which a worker employed by Contractor or any Subcontractor is required or permitted to work more than eight (8) hours in any one (1) calendar day or more than forty (40) hours per calendar week, except if such workers are paid overtime under Labor Code Section 1815. (C) Apprentices. Contractor is responsible for compliance with the requirements governing employment and payment of apprentices, as set forth in Labor Code Section 1777.5, which is fully incorporated by reference.
(D) Notices. Under Labor Code Section 1771.4, Contractor is required to post all job site notices prescribed by law or regulation.

9.3 Prevailing Wages. Each worker performing Work under this Contract that is covered under Labor Code Section 1720, including cleanup at the Project site, must be paid at a rate not less than the prevailing wage as defined in Sections 1771 and 1774 of the Labor Code. The prevailing wage rates are available online at http://www.dir.ca.gov/dlsr. Contractor must post a copy of the applicable prevailing rates at the Worksite. (A) Penalties. Under Labor Code Section 1775, Contractor and any Subcontractor will forfeit to City as a penalty up to Two Hundred Dollars ($200.00) for each calendar day, or portion a day, for each worker paid less than the applicable prevailing wage rate. Contractor must also pay each worker the difference between the applicable prevailing wage rate and the amount actually paid to that worker.

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(B) Federal Requirements. If this Project is subject to Federal prevailing wage requirements in addition to California prevailing wage requirements, Contractor and its Subcontractors are required to pay the higher of the current applicable prevailing wage rates under federal law, available online at http://www.access.gpo.gov/davisbacon/ca.html.

9.4 Payroll Records. Contractor must comply with the provisions of Labor Code Sections 1776 and 1812 and all implementing regulations, which are fully incorporated by this reference, including requirements for electronic submission of payroll records.
(A) Contractor and Subcontractor Obligations. Contractor and each Subcontractor must keep accurate payroll records, showing the name, address, social security number, work classification, straight time and overtime hours worked each day and week, and the actual per diem wages paid to each journeyman, apprentice, worker, or other employee employed in connection with the Work. Each payroll record must contain or be verified by a written declaration that it is made under penalty of perjury, stating both of the following:
(1) The information contained in the payroll record is true and correct.
(2) Contractor or Subcontractor has complied with the
requirements of Labor Code Sections 1771, 1811, and 1815 for any Work performed by its employees on the Project.
(B) Certified Record. A certified copy of an employee’s payroll record must be made available for inspection or furnished to the employee or his or her authorized representative on request, to City, or to the Division of Labor Standards Enforcement, and the Division of Apprenticeship Standards of the Department of Industrial Relations, and as further provided by the Labor Code.
(C) Enforcement. Upon notice of noncompliance with Labor Code Section 1776, Contractor or Subcontractor has ten (10) days in which to comply with requirements of this section. If Contractor or Subcontractor fails to do so within the ten (10) day period, Contractor or Subcontractor will forfeit a penalty of One Hundred Dollars ($100.00) per day, or portion a day, for each worker for whom compliance is required, until strict compliance is achieved. Upon request by the Division of Apprenticeship Standards, or the Division of Labor Standards Enforcement, these penalties will be withheld from progress payments then due.

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9.5 Labor Compliance. Under Labor Code section 1771.4, the Contract for this Project is subject to compliance monitoring and enforcement by the California Department of Industrial Relations.

9.6 Wage Theft Prevention. Compliance with Wage and Hour Laws:

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

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

Prior Judgments against Contractor and/or its Subcontractors: BY SIGNING

THIS AGREEMENT, CONTRACTOR AFFIRMS THAT IT HAS DISCLOSED ANY

FINAL JUDGMENTS, DECISIONS OR ORDERS FROM A COURT OR
INVESTIGATORY GOVERNMENT AGENCY FINDING – IN THE FIVE (5) YEARS PRIOR TO EXECUTING THIS AGREEMENT – THAT CONTRACTOR

OR ITS SUBCONTRACTOR(S) HAS VIOLATED ANY APPLICABLE WAGE AND HOUR LAWS. CONTRACTOR FURTHER AFFIRMS THAT IT OR ITS SUBCONTRACTOR(S) HAS SATISFIED AND COMPLIED WITH – OR HAS

REACHED AGREEMENT WITH THE CITY REGARDING THE MANNER IN WHICH IT WILL SATISFY – ANY SUCH JUDGMENTS, DECISIONS OR ORDERS.

Judgments or Decisions During Term of Contract: If at any time during the term of this Agreement, a court or investigatory government agency issues a final judgment, decision or order finding that Contractor or an subcontractor it employs to perform work under this Agreement has violated any applicable wage and hour law, or Contractor learns of such a judgment, decision, or order that was not previously disclosed, Contractor shall inform the City Attorney, no more than fifteen (15) days after the judgment, decision or order becomes final or of learning of the final judgment, decision or order. Contractor and its subcontractors shall promptly satisfy and comply with any such judgment, decision, or order, and shall provide the City Attorney with documentary evidence of compliance with the final judgment, decision or order within five (5) days of satisfying the final judgment, decision or order. The City reserves the right to require Contractor to enter into an agreement with the City regarding the manner in which any such final judgment, decision, or order will be satisfied.

City’s Right to Withhold Payment: Where Contractor or any subcontractor it employs to perform work under this Agreement has been found in violation of any

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applicable wage and hour law by a final judgment, decision or order of a court or government agency, the City reserves the right to withhold payment to Contractor until such judgment, decision or order has been satisfied in full.

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

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

Article 10
Safety Provisions

10.1 Safety Precautions and Programs. Contractor and its Subcontractors are fully responsible for safety precautions and programs, and for the safety of persons and property in the performance of the Work.

Contractor and its Subcontractors must comply with all applicable safety laws, rules and regulations and seek to avoid injury, loss, or damage to persons or property by taking reasonable steps to protect its employees and other persons at the Worksite, materials and equipment stored on or off site, and property at or adjacent to the Worksite.
(A) Reporting Requirements. Contractor must immediately provide a written report to City of all recordable accidents and injuries occurring at the Worksite. If Contractor is required to file an accident report with a government agency, Contractor will provide a copy of the report to City. (B) Legal Compliance. Contractor’s safety program must comply with the applicable legal and regulatory requirements. Contractor must provide City with copies of all notices required by law or regulation. (C) Contractor’s Obligations. Any damage or loss caused by Contractor arising from the Work which is not insured under property insurance must be promptly remedied by Contractor.
(D) Remedies. If City determines, in its sole discretion, that any part of the Work or Worksite is unsafe, City may, without assuming responsibility for Contractor’s safety program, require Contractor or its Subcontractor to cease performance of the Work or to take corrective measures to City’s satisfaction. If Contractor fails to promptly take the required corrective

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measures, City may perform them and deduct the cost from the Contract Price. Contractor agrees it is not entitled to submit a Claim for damages, for an increase in Contract Price, or for a change in Contract Time based on Contractor’s compliance with City’s request for corrective measures pursuant to this provision.

10.2 Hazardous Materials. Unless otherwise specified, this Contract does not include the removal, handling, or disturbance of any asbestos or other Hazardous Materials. If Contractor encounters materials on the Worksite that Contractor reasonably believes to be asbestos or other Hazardous Materials, and the asbestos or other Hazardous Materials have not been rendered harmless, Contractor may continue Work in unaffected areas reasonably believed to be safe, but must immediately cease work on the area affected and report the condition to City. No asbestos, asbestoscontaining products or other Hazardous Materials may be used in performance of the Work.

10.3 Material Safety. Contractor must maintain Material Safety Data Sheets (“MSDS”) at the Worksite, as required by law, for materials or substances used or consumed in the performance of the Work. The MSDS will be accessible and available to Contractor’s employees, Subcontractors, and City.
(A) Contractor Obligations. Contractor is solely responsible for the proper delivery, handling, use, storage, removal, and disposal of all materials brought to the Worksite and/or used in the performance of the Work.
(B) Labeling. Contractor must ensure proper labeling on any material brought onto the Worksite so that any persons working with or in the vicinity of the material may be informed as to the identity of the material, any potential hazards, and requirements for proper handling, protections, and disposal.

Article 11
Completion and Warranty Provisions

11.1 Final Completion.
(A) Final Inspection. When the Work required by this Contract is fully performed, Contractor must provide written notification to Project Manager requesting final inspection. Based on this inspection, the Design Professional will prepare a punch list of items that are incomplete, incorrectly installed, or not operating as required by the Contract Documents. The omission of any such item from this punch list will not

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relieve Contractor from fulfilling all requirements of the Contract Documents.
(B) Punch List. City will promptly deliver the punch list to Contractor and will specify the time by which all of the punch list items must be completed or corrected. The punch list may include City’s estimated cost to complete each punch list item if Contractor fails to do so within the specified time.
(C) Requirements for Final Completion. Final Completion will be achieved upon completion or correction of all punch list items, as verified by inspection, and upon satisfaction of all other Contract requirements, including any commissioning required under the Contract Documents, and submission of all final submittals, including a warranty bond as required under Section 4.4, instructions and manuals as required under Section

7.10, and as-built drawings as required under Section 7.11, all to City’s satisfaction. Once Final Completion is achieved, and the Project has been formally accepted by City, City will file a notice of completion with the County Recorder.
(D) Final Payment. Final Payment and release of retention, less any sums withheld pursuant to the provisions of the Contract Documents, will not be made sooner than thirty five (35) days after recordation of the notice of completion. If Contractor fails to complete all of the punch list items within the specified time, City may elect to accept the Project and record the notice of completion, and withhold up to one hundred fifty percent (150%) of City’s estimated cost to complete the remaining items from Final Payment.

11.2 Warranty.
(A) General. Contractor warrants that all materials and equipment will be new unless otherwise specified, of good quality, in conformance with the Contract Documents, and free from defective workmanship and materials. Contractor further warrants that the Work will be free from material defects not intrinsic in the design or materials required in the Contract Documents. At City’s request, Contractor must furnish satisfactory evidence of the quality and type of materials and equipment furnished. Contractor’s warranty does not extend to damage caused by normal wear and tear, or improper use or maintenance.
(B) Warranty Period. Contractor’s warranty must guarantee its Work for a period of one (1) year from the date of recordation of the notice of completion (the “Warranty Period”), except when a longer guarantee is provided by a supplier or manufacturer or is required by the Specifications or Special Conditions. Contractor must obtain from its Subcontractors,

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suppliers and manufacturers any special or extended warranties required by the Contract Documents.
(C) Warranty Documents. As a condition precedent to acceptance, Contractor must supply City with all warranty and guarantee documents relevant to equipment and materials incorporated into the Work and guaranteed by their suppliers or manufacturers.
(D) Subcontractors. The warranty obligations in the Contract Documents apply to Work performed by Contractor and its Subcontractors, and Contractor expressly agrees to act as co-guarantor of such Work.
(E) Contractor’s Obligations. Upon written notice from City to Contractor of any defect in the Work discovered during the Warranty Period, Contractor or its responsible Subcontractor must promptly correct the defective Work at its own cost. Contractor’s obligation to correct defects discovered during the Warranty Period will continue past the expiration of the Warranty Period as to any defects in Work for which Contractor was notified prior to expiration of the Warranty Period. (F) City’s Remedies. If Contractor and/or its responsible Subcontractor fails to correct defective Work within ten (10) days following notice by City, or sooner, if required by the circumstances, Contractor expressly agrees that City may correct the defects to conform with Contract Documents at Contractor’s sole expense, and Contractor agrees to reimburse City for its costs within thirty (30) days following City’s submission of a demand for payment pursuant to this provision. If City is required to initiate legal action to compel Contractor’s compliance with this provision, and City is the prevailing party in such action, Contractor is solely responsible for all of City’s attorney’s fees and legal costs expended to enforce Contractor’s warranty obligations herein in addition to any and all costs incurred by City to correct the defective Work.

11.3 Use Prior to Final Completion. City reserves the right to occupy or make use of the Project, or any portions of the Project, prior to Final Completion if City has determined that the Project or portion of it is in a condition suitable for the proposed occupation or use, and that it is in its best interest to occupy or make use of the Project, or any portions of it, prior to Final Completion. City will notify Contractor in writing of its intent to occupy or make use of the Project or any portions of the Project, pursuant to this provision.
(A) Non-Waiver. Occupation or use prior to Final Completion will not operate as acceptance of the Work or any portion of it, nor will it operate as a waiver of any of City’s rights or Contractor’s duties pursuant to these

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Contract Documents, and will not affect nor bear on the determination of the time of substantial completion with respect to any statute of repose pertaining to the time for filing an action for construction defect. (B) City’s Responsibility. City will be responsible for the cost of maintenance and repairs due to normal wear and tear with respect to those portions of the Project that are being occupied or used before final completion. The Contract Price or the Contract Time may be adjusted pursuant to the applicable provisions of these Contract Documents if, and only to the extent that, any occupation or use under this Section actually adds to Contractor’s cost or time to perform the Work.

11.4 Substantial Completion. For purposes of determining “substantial completion” with respect to any statute of repose pertaining to the time for filing an action for construction defect, “substantial completion” is deemed to mean the last date that Contractor or any Subcontractor performs Work on the Project prior to recordation of the Notice of Completion, except for warranty work performed under this Article.

Article 12
Dispute Resolution

12.1 Claims. This Article applies to and provides the exclusive procedures for any Claim arising from or related to the Contract or performance of the Work.
(A) Definition. “Claim” means a separate demand by Contractor, submitted in writing, for change in the Contract Time or Contract Price that has previously been submitted to City in accordance with the requirements of the Contract Documents, and which has been rejected by City, in whole or in part.
(B) Limitations. A Claim may only include the portion of a previously rejected demand that remains in dispute between Contractor and City.

With the exception of any dispute regarding the amount of money actually paid to Contractor as Final Payment, Contractor is not entitled to submit a Claim demanding a change in the Contract Time or the Contract Price, which has not previously been submitted to City in full compliance with Article 5 and Article 6, and subsequently rejected in whole or in part by City.
(C) Scope of Article. This Article is intended to provide the exclusive procedures for submission and resolution of Claims of any amount, and applies in addition to the provisions of Public Contract Code Section 9204 and Sections 20104, et seq.

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(D) No Work Delay. Notwithstanding the submission of a Claim or any other dispute between the parties related to the Project or the Contract Documents, Contractor must perform the Work and may not delay or cease Work pending resolution of the Claim or other dispute, but must continue to diligently prosecute the performance and timely completion of the Work, including the Work pertaining to the Claim or other dispute.

12.2 Claims Submission. The following requirements apply to any Claim subject to this Article:
(A) Substantiation. The Claim must be submitted to City in writing, clearly identified as a “Claim” submitted pursuant to this Article 12, and must include all of the documents necessary to substantiate the Claim including the Change Order request that was rejected in whole or in part, and a copy of City’s written rejection that is in dispute. The Claim must clearly identify and describe the dispute, including relevant references to applicable portions of the Contract Documents, and a chronology of the relevant events. Any Claim for additional payment must include a complete, itemized breakdown of all labor, materials, taxes, insurance, and subcontract, or other costs. Substantiating documentation such as payroll records, receipts, invoices, or the like, must be submitted in support of each claimed cost. Any Claim for an extension of time or delay costs must be substantiated with schedule analysis and narrative depicting and explaining claimed time impacts.
(B) Claim Format. A Claim must be submitted in the following format:
(1) General introduction, specifically identifying the submission as a “Claim” submitted under this Article 12.
(2) Relevant background information, including identification of the specific demand at issue, and the date of City's rejection of that demand.
(3) Detailed explanation of the issue(s) in dispute. For multiple issues, separately number and identify each issue and include the following for each separate issue:
(a) The background of the issue, including references to relevant provisions of the Contract Documents;
(b) A succinct statement of the matter in dispute, including Contractor’s position and the basis for that position;
(c) A chronology of relevant events;

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(d) The identification and attachment of all supporting documents (see subsection (A), above, on Substantiation); and
(e) Use of a separate page for each issue.
(4) Summary of issues and damages.
(5) The following certification, executed by Contractor’s authorized representative:
“The undersigned Contractor certifies under penalty of perjury that its statements and representations in this Claim are true and correct. Contractor warrants that this Claim is comprehensive and complete as to the matters in dispute, and agrees that any costs, expenses, or delay claim not included herein are deemed waived.

Contractor understands that submission of a Claim which has no basis in fact or which Contractor knows to be false may violate the False Claims Act (Government Code Section 12650 et seq.).” (C) Submission Deadlines.
(1) A Claim must be submitted within fifteen (15) days following the date that City notified Contractor in writing that a request for a change in the Contract Time or Contract Price, duly submitted in compliance with Article 5 and Article 6, has been rejected in whole or in part.
(2) With the exception of any dispute regarding the amount of Final Payment, any Claim must be filed on or before the date of Final Payment, or will be deemed waived.
(3) A Claim disputing the amount of Final Payment must be submitted within fifteen (15) days of the effective date of Final Payment, under Section 8.8, above.
(4) Strict compliance with these Claim submission deadlines is necessary to ensure that any dispute may be mitigated as soon as possible, and to facilitate cost-efficient administration of the Project.

Any Claim that is not submitted within the specified deadlines will be deemed waived by Contractor.

12.3 City’s Response. City will respond within forty-five (45) days of receipt of the Claim with a written statement identifying which portion(s) of the Claim are disputed, unless the forty-five (45) day period is extended by mutual agreement of City and Contractor. However, the City may first request, in

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writing, within thirty (30) days of receipt of the Claim, any additional documentation supporting the Claim or relating to defenses to the Claim that City may have against Contractor. If Contractor fails to submit the additional documentation to City within fifteen (15) days of receipt of City’s request, the Claim will be deemed waived.
(A) Additional Information. If additional information is thereafter required, it may be requested and provided upon mutual agreement of City and Contractor.
(B) City’s Response. City’s written response to the Claim, as further documented, will be submitted to Contractor within fifteen (15) days after receipt of the further documentation or within a period of time no greater than that taken by Contractor in producing the additional information, whichever is greater.
(C) Non-Waiver. Any failure by City to respond within the times specified above may not be construed as acceptance of the Claim in whole or in part, or as a waiver of any provision of these Contract Documents.

12.4 Meet and Confer. If Contractor disputes City’s written response, or City fails to respond within the specified time, Contractor must notify City in writing, either within fifteen (15) days of receipt of City’s response, or within fifteen (15) days of City’s failure to respond within the specified time, respectively, and demand an informal conference to meet and confer for settlement of the issues in dispute. If Contractor fails to dispute City’s response, in writing, within the specified times, Contractor’s Claim will be deemed waived. (A) Schedule Meet and Confer. Upon receipt of the demand to meet and confer, City will schedule the meet and confer conference to be held within thirty (30) days, or later if needed to ensure the mutual availability of all of the individuals that each party requires to represent its interests at the meet and confer conference.
(B) Location for Meet and Confer. The meet and confer conference will be scheduled at a location at or near City’s principal office. (C) Written Statement After Meet and Confer. Within ten (10) working days after the meet and confer has concluded, City will issue a written statement identifying which portion(s) of the Claim remain in dispute, if any.
(D) Submission to Mediation. If the Claim or any portion remains in dispute following the meet and confer conference, within ten working days

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after the City issues the written statement identifying any portion(s) of the Claim remaining in dispute, the disputed portion(s) will be submitted for mediation as set forth below.

12.5 Mediation and Government Code Claims.
(A) Mediation. Mediation under this Article will be scheduled within sixty (60) days following conclusion of the meet and confer process, with a mediator that the parties mutually agreed upon. The mediation itself may take place more than sixty (60) days following conclusion of the meet and confer process to ensure the mutual availability of the selected mediator and all of the individuals that each party requires to represent its interests.

The parties must share the costs of mediation equally, except costs incurred by each party for representation by legal counsel or any other consultant.
(B) Government Code Claims.
(1) Timely presentment of a Government Code Claim is a condition precedent to filing any legal action based on or arising from the Contract.
(2) The time for filing a Government Code Claim will be tolled from the time Contractor submits its written Claim pursuant to Section

12.2, above, until the time that Claim is denied as a result of the meet and confer process, including any period of time used by the meet and confer process. If the parties agree to mediation, the time for filing a Government Code Claim will be tolled until conclusion of the mediation if the Claim is not fully resolved by mutual agreement of the parties during the mediation or any continuation of the mediation.

12.6 Tort Claims. This Article does not apply to tort claims and nothing in this Article is intended nor will be construed to change the time periods for filing tort-based Government Code Claims.

12.7 Arbitration. It is expressly agreed, under California Code of Civil Procedure Section 1296, that in any arbitration to resolve a dispute relating to this Contract, the arbitrator’s award must be supported by law and substantial evidence.

12.8 Damages. Contractor bears the burden of proving entitlement to and the amount of any claimed damages. Contractor is not entitled to damages calculated on a total cost basis, but must prove actual damages.

Contractor is not entitled to recovery of any alleged home office overhead.

The Eichleay Formula or similar formula may not be used for any recovery

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under the Contract. Contractor is not entitled to consequential damages, including home office overhead or any form of overhead not directly incurred at the Worksite; lost profits; loss of productivity; lost opportunity to work on other projects; diminished bonding capacity; increased cost of financing for the Project; extended capital costs; non-availability of labor, material or equipment due to delays; or any other indirect loss arising from the Contract.

12.9 Other Disputes. The procedures in this Article 12 will apply to any and all disputes or legal actions, in addition to Claims, arising from or related to this Contract, unless and only to the extent that compliance with a procedural requirement is expressly and specifically waived by City.

Nothing in this Article is intended to delay suspension or termination under Article 13.

Article 13
Suspension and Termination

13.1 Suspension for Cause. In addition to all other remedies available to City, if Contractor fails to perform or correct work in accordance with the Contract Documents, City may immediately order the Work, or any portion of it, suspended until the cause for the suspension has been eliminated to City’s satisfaction.
(A) Failure to Comply. Contractor will not be entitled to an increase in Contract Time or Contract Price for a suspension occasioned by Contractor’s failure to comply with the Contract Documents. (B) No Duty to Suspend. City’s right to suspend the Work will not give rise to a duty to suspend the Work, and City’s failure to suspend the Work will not constitute a defense to Contractor’s failure to comply with the requirements of the Contract Documents.

13.2 Suspension for Convenience. City reserves the right to suspend, delay, or interrupt the performance of the Work in whole or in part, for a period of time determined to be appropriate for City’s convenience, and not due to any act or omission by Contractor or its Subcontractors. Upon notice by City pursuant to this provision, Contractor must immediately suspend, delay, or interrupt the Work as directed by City. The Contract Price and the Contract Time will be equitably adjusted by Change Order to reflect the cost and delay impact occasioned by such suspension for convenience.

13.3 Termination for Default. Contractor may be deemed in default for a material breach of or inability to perform the Contract, including Contractor’s refusal or failure to supply sufficient skilled workers, proper

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materials, or equipment to perform the Work within the Contract Time; refusal or failure to make prompt payment to its employees, Subcontractors, or suppliers or to correct rejected work; disregard of laws, regulations, ordinances, rules, or orders of any public agency with jurisdiction over the Project; or if Contractor lacks financial capacity to complete the Work within the Contract Time; or is otherwise responsible for a material breach of the Contract requirements.

(A) Notice. Upon City’s determination that Contractor is in default, City may provide Contractor and its surety written notice of default and intent to terminate the Contract.
(B) Termination. Within seven (7) calendar days after notice of intent to terminate for default has been given, unless the default is cured or arrangements to cure the default have been made and memorialized in writing, to City’s satisfaction, City may terminate the Contract by written notice to Contractor with a copy to Contractor’s surety. (C) Waiver. Time being of the essence in the performance of the Work, if Contractor’s surety fails to arrange for completion of the Work in accordance with the Performance Bond, within seven (7) calendar days from the date of the notice of termination, Contractor’s surety will be deemed to have waived its right to complete the Work under the Contract, and City may immediately make arrangements for the completion of the Work through use of its own forces, by hiring a replacement contractor, or by any other means that City determines advisable under the circumstances. Contractor and its surety will be jointly and severally liable for any additional cost incurred by City to complete the Work following termination. In addition, City will have the right to use any materials, supplies, and equipment belonging to Contractor and located at the Worksite for the purposes of completing the remaining Work. (D) Wrongful Termination. If a court of competent jurisdiction or an arbitrator later determines that the termination for default was wrongful, the termination will be deemed to be a termination for convenience, and Contractor’s damages will be strictly limited to the compensation provided for termination for convenience, in Section 13.4, below. Contractor waives any claim for any other damages for wrongful termination including consequential damages, lost opportunity costs or lost profits.

13.4 Termination for Convenience. City reserves the right to terminate all or part of the Contract for convenience upon written notice to Contractor.

Upon receipt of such notice, Contractor must immediately stop the Work, comply with City’s instructions to protect the completed Work and materials, and use its best efforts to minimize further costs. In the event of termination for convenience, the parties agree that the following will

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constitute full and fair compensation to Contractor, and that Contractor will not be entitled to any additional compensation:
(A) Completed Work. The value of its Work satisfactorily performed to date, including Project overhead and profit based on Contractor’s schedule of values;
(B) Demobilization. Actual and substantiated demobilization costs; and
(C) Markup. Five percent (5%) of the total value of the Work performed as of the date of notice of termination or five percent (5%) of the value of the Work yet to be completed, whichever is less.

13.5 Provisions Remaining in Effect. Upon termination pursuant to this Article, the provisions of the Contract Documents remain in effect as to any claim, indemnity obligation, warranties, guarantees, submittals of asbuilt drawings, instructions, or manuals, or other such rights and obligations arising prior to the termination date.

Article 14
Miscellaneous Provisions

14.1 Assignment of Unfair Business Practice Claims. Under Public Contract Code Section 7103.5, Contractor and its Subcontractors agree to assign to City all rights, title, and interest in and to all causes of action it may have under Section 4 of the Clayton Act (15 U.S.C. Section 15) or under the Cartwright Act (Chapter 2 (commencing with Section 16700) of Part 2 of Division 7 of the Business and Professions Code), arising from purchases of goods, services, or materials pursuant to the Contract or subcontract. This assignment will be effective at the time City tenders Final Payment to Contractor, without further acknowledgement by the parties.

14.2 Provisions Deemed Inserted. Every provision of law required to be inserted in the Contract Documents is deemed to be inserted, and the Contract Documents will be construed and enforced as though such provision has been included. If it is discovered that through mistake or otherwise that any required provision was not inserted, or not correctly inserted, the Contract Documents will be amended accordingly.

14.3 Waiver. No waiver of a breach, failure of any condition, or any right or remedy contained in or granted by the provisions of the Contract Documents will be effective unless it is in writing and signed by the party

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waiving the breach, failure, right, or remedy. No waiver of any breach, failure, right, or remedy will be deemed a waiver of any other breach, failure, right, or remedy, whether or not similar, nor will any waiver constitute a continuing waiver unless specified in writing by the waiving party.

14.4 Titles, Headings, and Groupings. The titles and headings used and the groupings of provisions in the Contract Documents are for convenience only and may not be used in the construction or interpretation of the Contract Documents or relied upon for any other purpose.

14.5 Statutory and Regulatory References. With respect to any amendments to any statutes or regulations referenced in these Contract Documents, the reference is deemed to be the version in effect on the date that that bids were due.

END OF GENERAL CONDITIONS

2023 Sidewalk Repair Project SPECIAL CONDITIONS
CSD2023-021 Page 1
Version: December 2016

SPECIAL CONDITIONS

Not Applicable

TECHNICAL SPECIFICATIONS
2023 SIDEWALK REPAIR PROJECT

City of Morgan Hill
2023 Sidewalk Repair Project - Location List
Map
# Address Sidewalk Ft
Curb & Gutter /
Driveway
Total Square
Feet # of Trees Notes
1 85 E 5th ST 45.0 225.0 2 Currently bricks
2 E 5th St near Monterey 25.0 125.0 0
3 W 1st St 20.0 100.0 Stump cold mix and stump removal
4 83 W 1st St 10.0 50.0 1 ramped with cold mix
5 630 Alkire Ave 15.0 75.0 1 grinded 6 areas
6 17850 Crest Ave 10.0 50.0 1 2 locations 5' each
7 35 Wright Ave 18.0 90.0 1 3 hazards 1 ramped and 2 grinded 8 270 Wright Ave 10.0 50.0 1 2 areas
9 Magical Bridge 100.0 0 need to extend cement to right as you enter sand box 10-11 90 E Edmundson 70.0 350.0 6 6 locations - 10', 20', 15', 5', 5', 15' 12 15640 La Jolla Dr / La Crosse 15.0 75.0 Private 2 locations 10', 5' 13 670 Roble Dr 25.0 125.0 2 3 areas grinded and 1 ramped; 5', 5, 15' 14-15 La Alameda/Alamo 30.0 14.0 220.0 1
2 spots on Alamo side and 2 on La Alameda side by apart complex; 3 locations 10' + driveway approach
16 735 Via Del Castille 15.0 75.0 1 damaged sidewalk
17 775 Cordoba Ct 15.0 10.0 125.0 1 ramped with cold mix; 15' sidewalk; 10' driveway approach 18 Oak Creek Park 7.0 42.0 0 Big playground off White cloud Dr to the left if parked on street 19 E Main; East of Montoya Circle 70.0 350.0 6 6 locations - 10', 10', 15', 10', 10', 15' 20 560 Main Ave 5.0 25.0 1
21 570 Main Ave 20.0 100.0 2 2 locations - 15', 5'
22 Montoya Circle 100.0 500.0 10 9 locations - 20', 5', 10', 5', 10', 5', 10', 10', 25' 23 Main Ave between 570 and Montoya Circle 30.0 150.0 3 3 locations - 10', 15', 5' 24 Main Ave btw Carriage Lamp and Belletto 20.0 100.0 2 2 locations - 10', 10' 25 Main btw Serene and Belletto 30.0 150.0 0 4 locations - 10', 10', 5', 5' 26 Main btw Serene and 101 Over pass 45.0 225.0 0 5 locations - 10', 5', 10', 10', 10' 27 17429 Serene Dr 25.0 125.0 2 3 locations - 10', 10', 5' 28 Bell Estates (off Calle Caballeria) 22.0 110.0 2 Park pathway - 2 locations - 10', 12' 29 211-251 Jarivs Dr 90.0 450.0 6 9 locations - 5', 10', 5', 10', 10', 5', 15', 20', 10' 30 19500 Monterey 26.0 130.0 2 2 locations - 9', 17'
31 200 Burnett Ave 205.0 70.0 1375.0 11
15 locations - 15', 20', 5', 10', 30', 5', 5', 5', 15', 15', 20', 20', 5', 15', 20'; curb and gutter - 20', 30', 20'
32 Hale before Tilton 20.0 100.0 0 Cold mix; 2 locations - 15', 5' 33 18332 Solano Ct 15.0 75.0 1 2 locations - 5', 10'
34 Cochrane/Cochrane Circle 10.0 30.0 Cold mix for ada
35 1790 E Dunne 35.0 175.0 3 3 locations - 15', 10', 10'

City of Morgan Hill
2023 Sidewalk Repair Project - Location List
Map
# Address Sidewalk Ft
Curb & Gutter /
Driveway
Total Square
Feet # of Trees Notes
36 E Dunne (1729 E Dunne) 20.0 100.0 1 1 location btw Peppertree and Pine 37 16925 Peppertree / Seville 20.0 100.0 2 2 locations - 15', 5' 38 16750 Ponderosa Ct 20.0 100.0 1 2 locations - 15', 5' Total Square Feet 6,347.00 73 trees

COMMUNITY SERVICES DEPARTMENT
17575 PEAK AVENUE
MORGAN HILL, CA 95037
GENERAL:(408) 779-7271
FAX:(408) 779-3117
WWW.MORGANHILL.CA.GOV

Addendum #1
ADDENDUM NO. 1
CSD-2023-021
DATE: FEBRUARY 21, 2023
TO: ALL RESPONDING PARTIES TO THE INVITATION TO BID FOR THE 2023 SIDEWALK REPAIR PROJECT
FROM: Keri Russell, Maintenance Manager
Cynthia Iwanaga, Management Analyst
SUBJECT: Responses to Questions and Clarifications for the 2023 Sidewalk Repair Project Added: Technical Specifications, Link to Map and Revised Bid Schedule

1. Attached please find the technical specifications and City’s Sidewalk, Curb and Gutter Details, which were accidently not attached to the bid documents.

2. Please provide the link to the map with the sidewalk repair locations.

Please see the Technical Specifications Section 2.01 Mobilization or the link below. 2023 Sidewalk Project - Google My Maps

3. Does the City of Morgan Hill have a list of approved concrete mix designs from Readymix Suppliers within the area?
The City standard specifications for sidewalks is 6sack, which is 3000PSI concrete.

4. Regarding inspections and materials testing, will the compaction and materials testing be done by the City of Morgan Hill staff? Or do we need to provide 3rd party testing? The City will review and approve submittals. Third party testing will not be required.

5. Does the City of Morgan Hill have property available to use to temporarily stockpile basic materials like base rock, debris and a conex box?
Yes, the City can find a staging area for the awarded contractor to temporarily stockpile basic materials.

6. 85 East 5th Street has a note for brick sidewalk. Will this be a new brick sidewalk or concrete sidewalk? We wanted to make contractors aware that it is currently brick, but it should be fully replaced with a concrete sidewalk.

COMMUNITY SERVICES DEPARTMENT
17575 PEAK AVENUE
MORGAN HILL, CA 95037
GENERAL:(408) 779-7271
FAX:(408) 779-3117
WWW.MORGANHILL.CA.GOV

Addendum #1

7. Can a more detailed Bid Schedule be provided? One that includes Curb and Gutter that will be removed and replaced, and asphalt plugs with their square footage? Please see attached revised Bid Schedule.

The amounts to be bid are:

Curb and Gutter: 470 sq ft
Sidewalk: 5,877 sq. ft.

Asphalt Plugs: Estimated by Contractor in the Field

8. At what locations will the asphalt plugs need to be removed and replaced? What about the curb and gutter?
The following details are provided on the 2023 Sidewalk Project List/Spreadsheet.

1. La Alameda/Alamo: 70 sq ft. driveway approach

2. 775 Cordoba Court: 50 sq. ft. driveway approach

3. 200 Burnett Avenue: Three (3) areas – 20 sq ft, 30 sq ft and 20 sq ft, curb and gutter

9. I understand that the City inspector can randomly stop by at any time to inspect work, but if he’s not onsite at the time of the compaction, do we proceed with work or should we make sure he inspects the compaction work?
Work can continue as normal if the inspector is not onsite at the time of compaction.

10. The due date and time for this bid remain the same, Thursday, March 2, 2023, at 10:30 a.m. via e-mail to [email protected] Late proposals will not be accepted.

THIS DOCUMENT AND THE ATTACHMENTS SHALL BECOME PART OF THE PROJECTS SPECIFICATION Bidder must acknowledge receipt of this Addendum in the Bid Proposal (Section 2. Addenda) that is submitted to the City.

TECHNICAL PROVISIONS

CITY OF MORGAN HILL
2023 SIDEWALK REPAIR AND REPLACEMENT PROJECT

TECHNICAL SPECIFICATIONS
SCOPE OF WORK:

The 2023 Sidewalk Replacement Project will occur at multiple locations within Morgan Hill, CA 95037, and the Scope of Work is described as follows:
• Remove and replace damaged sidewalk totaling approximately 6,347 square feet and remove roots of trees that have been removed prior to the sidewalks being opened up, that is, root removal will be required by the sidewalk contractor.

GENERAL REQUIREMENTS:

1.01 ORDER OF WORK
a. Description: Order of work shall conform to the provisions in the Caltrans “Standard Specifications” (CSS) and these special provisions.

Upon scheduled date of the preconstruction meeting, contractor shall prepare and submit a detailed schedule to the City Project Manager for review and approval. In addition, contractor shall provide and deliver a notice (minimum of 48 hours prior to construction) to all affected residents. b. Measurement and Payment: Full compensation for conforming to the provisions in this section "Order of Work" shall be considered as included in the contract prices paid for the various items of work involved and no additional compensation will be allowed therefore.

1.02 MAINTAINING TRAFFIC
a. Description: Attention is directed to Sections 7-1.03, "Public Convenience”, 7-1.04, "Public Safety”, and 12, "Construction Area Traffic Control Devices”, of the Standard Specifications and to the provisions in "Public Safety" of these special provisions and these special provisions. Nothing in these special

TECHNICAL PROVISIONS

provisions shall be construed as relieving the Contractor from the responsibilities specified in Section 7-1.04.

The Contractor may detour traffic in a route approved by the City Project Manager. Flaggers shall be provided at non-signalized intersections when traffic conditions warrant as determined by the City Project Manager. At least one lane of traffic shall be provided through the construction area during construction. Two lanes of traffic shall be provided through the project area during non-construction time.

Vehicular and pedestrian access to all properties shall be maintained at all times. Contractor shall place “no parking” signs as required in order to prevent the public from blocking the work. Contractor shall provide trench plates where necessary to accommodate access or provide other means of access. b. Measurement and Payment: Full compensation for conforming to the provisions in this section "Maintaining Traffic" shall be considered as included in the contract prices paid for the various items of work involved and no additional compensation will be allowed therefore.

1.03 PUBLIC SAFETY
a. Description: The Contractor shall provide for the safety of traffic and the public in conformance with the provisions in Section 7-1.04, "Public Safety”, of the Standard Specifications and these special provisions.

The Contractor shall install temporary railing (Type K) between a lane open to public traffic and an excavation, obstacle or storage area when the following conditions exist:

A. Excavations.—The near edge of the excavation is 12 feet or less from the edge of the lane, except:

1. Excavations covered with sheet steel or concrete covers of adequate thickness to prevent accidental entry by traffic or the public.

2. Excavations less than one foot deep.

3. Trenches less than one foot wide for irrigation pipe or electrical conduit, or excavations less than one foot in diameter.

4. Excavations parallel to the lane for the purpose of pavement widening or reconstruction.

5. Excavations in side slopes, where the slope is steeper than 1:4 (vertical:horizontal).

6. Excavations protected by existing barrier or railing.

B. Temporarily Unprotected Permanent Obstacles.—The work includes the installation of a fixed obstacle together with a protective system, such as a sign structure together with protective railing, and the Contractor elects to install the obstacle prior to installing the protective system; or the Contractor, for the Contractor's convenience and with permission of the City Project Manager,

TECHNICAL PROVISIONS

removes a portion of an existing protective railing at an obstacle and does not replace such railing complete in place during the same day.

C. Storage Areas.—Material or equipment is stored within 12 feet of the lane and the storage is not otherwise prohibited by the provisions of the Standard Specifications and these special provisions.

The approach end of temporary railing (Type K), installed in conformance with the provisions in this section "Public Safety" and in Section 7-1.04, "Public Safety," of the Standard Specifications, shall be offset a minimum of 15 feet from the edge of the traffic lane open to public traffic. The temporary railing shall be installed on a skew toward the edge of the traffic lane of not more than one foot transversely to 10 feet longitudinally with respect to the edge of the traffic lane. If the 15 feet minimum offset cannot be achieved, the temporary railing shall be installed on the 10 to 1 skew to obtain the maximum available offset between the approach end of the railing and the edge of the traffic lane, and an array of temporary crash cushion modules shall be installed at the approach end of the temporary railing.

Temporary railing (Type K) shall conform to the provisions in Section 12-3.08, "Temporary Railing (Type K)," of the Standard Specifications. Temporary railing (Type K), conforming to the details shown on 1999 Standard Plan T3, may be used. Temporary railing (Type K) fabricated prior to January 1, 1993, and conforming to 1988 Standard Plan B11-30 may be used, provided the fabrication date is printed on the required Certificate of Compliance.

Temporary crash cushion modules shall conform to the provisions in "Temporary Crash Cushion Module" of these special provisions.

Except for installing, maintaining and removing traffic control devices, whenever work is performed or equipment is operated in the following work areas, the Contractor shall close the adjacent traffic lane unless otherwise provided in the Standard Specifications and these special provisions:

Approach Speed of Public Traffic
(Posted Limit)
Work Areas
45 Miles Per Hour Within 6 feet of a traffic lane but not on a traffic lane
35 to 45 Miles Per Hour Within 3 feet of a traffic lane but not on a traffic lane
The lane closure provisions of this section shall not apply if the work area is protected by permanent or temporary railing or barrier.

When traffic cones or delineators are used to delineate a temporary edge of a traffic lane, the line of cones or delineators shall be considered to be the edge of the traffic lane, however, the Contractor shall not reduce the width of an existing lane to less than 10 feet without written approval from the City Project Manager.

TECHNICAL PROVISIONS

When work is not in progress on a trench or other excavation that required closure of an adjacent lane, the traffic cones or portable delineators used for the lane closure shall be placed off of and adjacent to the edge of the traveled way. The spacing of the cones or delineators shall be not more than the spacing used for the lane closure. Suspended loads or equipment shall not be moved nor positioned over public traffic or pedestrians. b. Measurement and Payment: Full compensation for conforming to the provisions in this section "Public Safety," including furnishing and installing temporary railing (Type K) and temporary crash cushion modules, shall be considered as included in the contract prices paid for the various items of work involved and no additional compensation will be allowed therefore.

1.04 DUST CONTROL
a. Description: Dust control shall conform to the provisions in Section 10, “Dust Control”, of the Standard Specifications and these Special Provisions. b. Measurement and Payment: Full compensation for conforming to the provisions in this section "Dust Control" shall be considered as included in the contract prices paid for the various items of work involved and no additional compensation will be allowed therefore.

1.05 WATER POLLUTION CONTROL
a. General: Water pollution control work shall conform to the provisions in Section 7-1.01G, "Water Pollution," of the Standard Specifications and these special provisions.

Water pollution control work shall conform to the requirements in the "Storm Water Pollution Prevention Plan (SWPPP) and Water Pollution Control Program (WPCP) Preparation Manual" and the "Construction Site Best Management Practices (BMPs) Manual," and addenda thereto issued up to, and including, the date of advertisement of the project, hereafter referred to respectively as the "Preparation Manual" and the "Construction Site BMP Manual" and collectively as the "Manuals." Copies of the Manuals may be obtained from the Department of Transportation, Material Operations Branch, Publication Distribution Unit, 1900 Royal Oaks Drive, Sacramento, California 95815, Telephone: (916) 445-3520. Copies of the Manuals may also be obtained from the Department's Internet Web Site at:
http://www.dot.ca.gov/hq/construc/stormwater.html.

The Contractor shall know and fully comply with the applicable provisions of the Manuals and Federal, State, and local regulations that govern the Contractor's operations and storm water discharges from both the project site and areas of disturbance outside the project limits during construction.

TECHNICAL PROVISIONS

Under no circumstances, shall concrete wash water, water from saw-cutting operations or any other contaminated water be allowed to enter the storm drain system or other drainage courses.

Unless arrangements for disturbance of areas outside the project limits are made by the City of Morgan Hill and made part of the contract, it is expressly agreed that the City assumes no responsibility whatsoever to the Contractor or property owner with respect to any arrangements made between the Contractor and property owner to allow disturbance of areas outside the project limits.

The Contractor shall be responsible for the costs and for liabilities imposed by law as a result of the Contractor's failure to comply with the requirements set forth in this section "Water Pollution Control" including, but not limited to, compliance with the applicable provisions of the Manuals and Federal, State, and local regulations. For the purposes of this paragraph, costs and liabilities include, but are not limited to, fines, penalties, and damages whether assessed against the State or the Contractor, including those levied under the Federal Clean Water Act and the State Porter Cologne Water Quality Act.

In addition to the remedies authorized by law, an amount of the money due the Contractor under the contract, as determined by the City of Morgan Hill, may be retained by the State of California until disposition has been made of the costs and liabilities.

The retention of money due the Contractor shall be subject to the following:

A. The City give the Contractor 30-days notice of the City's intention to retain funds from partial payments, which may become due to the Contractor prior to acceptance of the contract. Retention of funds from payments made after acceptance of the contract, may be made without prior notice to the Contractor.

B. No retention of additional amounts out of partial payments will be made if the amount to be retained does not exceed the amount being withheld from partial payments pursuant to Section 9-1.06, "Partial Payments," of the Standard Specifications.

C. If the City has retained funds and it is subsequently determined that the State is not subject to the costs and liabilities in connection with the matter for which the retention was made, the City shall be liable for interest on the amount retained at the legal rate of interest for the period of the retention.

Conformance with the provisions in this section "Water Pollution Control" shall not relieve the Contractor from the Contractor's responsibilities as provided in Section 7, "Legal Relations and Responsibilities," of the Standard Specifications.

Measurement and Payment: Full compensation for conforming to the provisions in this section "Water Pollution Control" shall be considered

TECHNICAL PROVISIONS

as included in the contract prices paid for the various items of work involved and noadditional compensation will be allowed therefore.

1.06 DAMAGE REPAIR
a. Description: Attention is directed to Section 7-1.16, “Contractor’s Responsibility for the Work and Materials”, and Section 7-1.11, “Preservation of Property”, of the Standard Specifications and these Special Provisions.

Any damage to existing facilities or properties during the period of the work shall be returned to the original condition.
b. Measurement and Payment: All damage to existing facilities shall be repaired and or replaced at the Contractor’s expense.

1.07 RESPONSIBILITY FOR DAMAGE
a. General: Responsibility for damage shall conform to the provisions in Section 7-1.12, “Responsibility for Damage”, of the Standard Specifications.

1.08 PROGRESS SCHEDULE
a. General: The progress schedule shall be in accordance with Section 8-1.04 of the CSS. Furthermore, on a weekly basis, the schedule shall be updated and submitted to the City Project Manager. This update shall show the progress on salient features, mark the dates of completion and incorporate changes in construction sequencing or in items of construction. b. Format: The construction schedule shall be a CPM format. The schedule shall be submitted in the following formats: Time-scaled Logic Diagram showing the name of the activity, the logical relationships, the duration, and the actual or scheduled start dates in a bar chart format; and an Activity Report showing the name of the activity, the actual and scheduled finish and start dates, the scheduled and actual durations, the logical relationships and other pertinent data. The schedule shall be subject to review, correction and acceptance by the City Project Manager.
c. Periodically Scheduled Meetings: Periodically scheduled meetings will be required, in which the project teams of the Contractor and his agents and the City can meet to discuss the schedule and progress of project. d. Measurement and Payment: Full compensation for conforming to the provisions in this section "Progress Schedule” shall be considered as included in the contract prices paid for the various items of work involved and no additional compensation will be allowed therefore.

1.09 COORDINATION OF WORK
a. Description: The Contractor shall give specified notifications to the

TECHNICAL PROVISIONS

property owners effected by the work. All properties affected by the work shall be notified in writing, 48 hours prior to the interruption. In addition, the Contractor shall attempt to notify the affected occupants or residents, in person, on the same day of the work.

Failure to notify property owners with written notification shall result in stopping the project progress.
b. Measurement and Payment: Full compensation for conforming to the provisions in this section "Coordination of Work” shall be considered as included in the contract prices paid for the various items of work involved and no additional compensation will be allowed therefore.

1.10 DAILY AND FINAL CLEAN UP
a. Description: The Contractor shall clean up all rubbish and excess materials from the work site on a daily basis, the material storage site, and all ground occupied by Contractor in connection with this work. All tree, roots, wood chips, branches, soil and concrete debris shall be removed from each repair location on a daily basis. The Contractor shall leave all parts of the work in a neat and presentable condition on a daily basis and prior to final inspection of the work by the Project Manager.
b. Measurement and Payment: Full compensation for conforming to the provisions in this section "Daily and Final Clean Up” shall be considered as included in the contract prices paid for the various items of work involved and no additional compensation will be allowed therefore.

TECHNICAL PROVISIONS

SIDEWALK REPAIR, CURB & GUTTER REMOVAL AND REPLACEMENT

2.01 MOBILIZATION
Description: Mobilization shall conform to the provisions in Section 11, "Mobilization”, of the Standard Specifications. Mobilization shall include mobilizing labor and equipment and all necessary incidentals to complete the work at the various addresses listed in the Appendix 1. The locations can also be viewed on a map via the following link:
https://www.google.com/maps/d/u/0/edit?mid=1y8RXZMLVKw-Cmrt3NE-8FzZR7J6Amo&usp=sharing Underground Service Alert-Northern California (USA) shall be contacted prior to removal of sidewalks, curb and gutters, and trees in order to prevent possible utility damage.
a. Measurement and Payment: Full compensation for conforming to the provisions in this section "Mobilization” shall be considered as included in the contract unit prices paid for the various items of work involved and no additional compensation will be allowed therefore.

2.02 SCHEDULING
a. Description: The Contractor shall submit a complete, tentative project schedule at the time of the preconstruction meeting. A minimum of five (5) working days prior to beginning work on any of the streets, the Contractor shall submit to the City Project Manager for approval a detailed written schedule of work listing the dates on which individual streets shall be surfaced. Following approval, the Contractor shall adhere diligently to the approved written schedule in the prosecution of the work.

The contractor shall post No Parking signs on affected streets indicating the date of work at least 48 hours prior to the actual work. As previously noted in Section

1.09-Coordination of Work, the Contractor shall also notify individual residents who will be adversely affected by the work in writing via fliers or door hangers at least 48 hours prior to work. The Contractor shall submit for approval by the City Project Manager a sample of the written notification to be supplied to residents.

This sample shall be submitted at the time of the preconstruction meeting. Any expenses incurred by delays caused by the failure of the Contractor to adhere to the approved schedule or to properly notify residents shall be borne solely by the Contractor.
b. Measurement and Payment: Full compensation for conforming to the provisions in this section "Scheduling” shall be considered as included in the contract prices paid for the various items of work involved and no additional compensation will be allowed therefore.

2.03 PROJECT APPEARANCE

TECHNICAL PROVISIONS

a. Description: The Contractor shall maintain a neat appearance at the work site in all areas visible to the public. Broken concrete, asphalt concrete, soil, tree branches and roots and other debris developed during construction shall be disposed of concurrently with its removal on a daily basis. Stockpiling ofnew materials shall be permitted only with the approval of the City ProjectManager and only in approved locations.

The Contractor shall sweep the streets daily within the project area as directed by the City Project Manager for the duration of the project. The Contractor shall not sweep construction materials or other debris onto private properties.

The Contractor shall be responsible for any and all damage to public and private property (including driveways, trees, plants, shrubs, fences, etc...) and shall replace with new material or correct any damaged property to the satisfaction of the City Project Manager.
b. Measurement and Payment: Full compensation for conforming to the provisions in this section "Project Appearance” shall be considered as included in the contract prices paid for the various items of work involved and no additional compensation will be allowed therefore.

2.04 CONSTRUCTION AREA SIGNS
a. Description: Construction area signs shall be furnished, installed, maintained, and removed when no longer required in conformance with the provisions in Section 12, "Construction Area Traffic Control Devices”, of the Standard Specifications and these special provisions.

Attention is directed to the provisions in "Prequalified and Tested Signing and Delineation Materials" of these special provisions. Type II retro reflective sheeting shall not be used on construction area sign panels.

The Contractor shall notify the appropriate regional notification center for operators of subsurface installations at least 2 working days, but not more than14 calendar days, prior to commencing excavation for construction area sign posts. The regional notification centers include, but are not limited to, the following:

Notification Center Telephone Number
Underground Service Alert-Northern California
(USA)
1-800-642-2444
1-800-227-2600
Underground Service Alert-Southern California
(USA)
1-800-422-4133
1-800-227-2600
Excavations required to install construction area signs shall be performed by hand methods without the use of power equipment, except that power equipment may be used if it is determined there are no utility facilities in the area of the proposed post holes.

Sign substrates for stationary mounted construction area signs may be fabricatedfrom fiberglass reinforced plastic as specified under "Prequalified and Tested Signing

TECHNICAL PROVISIONS

and Delineation Materials" of these special provisions.

The Contractor may be required to cover certain signs during the progress of thework.

Signs that are no longer required or that convey inaccurate information tothe public shall be immediately covered or removed, or the information shall becorrected.

Covers for construction area signs shall be of sufficient size and density to completely block out the complete face of the signs. The retro-reflectiveface of the covered signs shall not be visible either during the day or at night. Covers shall be fastened securely so that the signs remain covered during inclement weather.

Covers shall be replaced when they no longer cover the signsproperly. b. Measurement and Payment: Full compensation for conforming to the provisions in this section "Construction Area Signs” shall be considered as included in the contract prices paid for the various items of work involved and no additional compensation will be allowed therefore.

2.05 TRAFFIC & PEDESTRIAN CONTROL
a. Description: The Contractor shall comply with all of the requirements of the current edition of the State of California "Manual of Traffic Controls for Construction and Maintenance and Work Zones" for traffic control, pedestrian control and all construction area signs. Attention is also directed to Sections 7-

1.03, "Public Convenience", and 7-1.04, "Public Safety", of the CSS and these Special Provisions. Nothing in these Special Provisions shall be construed as relieving the Contractor from his responsibility as provided in said Section 7-1.04.

Construction area signs shall be furnished, installed, maintained, and removed when no longer required in accordance with the provisions in Section 12, "Construction Area Traffic Control Devices", of the CSS, the Manual of Traffic Controls and these Special Provisions. Sidewalk closure signs shall be placed at each sidewalk replacement location.

When traffic control is not performed in compliance with the submitted Traffic Control Plan, the project shall be suspended until the Contractor conforms to the approved plan. During the period of suspension, all construction expenses incurred shall be the sole responsibility of the Contractor. b. Measurement and Payment: Full compensation for conforming to the provisions in this section "Traffic Control” shall be considered as included in the contract prices paid for the various items of work involved and no additional compensation will be allowed therefore.

2.06 REMOVE AND REPLACE CONCRETE SIDEWALK
a. Description: This work consists of the removal and replacement of damaged concrete sidewalk and the removal and replacement of concrete curb and gutter. Root removal may be necessary at each location. City Project Manager should be consulted prior to root removal. Exact locations of sidewalk

TECHNICAL PROVISIONS

replacement and root removals are to be determined by the City Project Manager. It is anticipated that at least 4,120 SF of concrete sidewalk will be removed and replaced.

Sidewalk replacement Work includes removal and disposal of existing sidewalk, saw-cutting, root removal, expansion joints if required, score joints, removal/replacement & compaction of base material, formwork, curing compound, and rebar doweling per 2007 City Standard Details, to the dimensions at the locations listed in these special provisions (if the sidewalk is attached to curb and gutter it must be doweled every three (3) feet and if it is attached to a park strip, the contractor will need to dowel on both ends) or as directed by theCity Project Manager and in conformance with Section 73 Concrete Curbs and Sidewalks, Section 15 Existing Highway Facilities of the CSS and the City’s Standard Details for Construction. If truncated domes are needed the City requires 3’ X 4’, gray color, cast-in-place truncated domes. If curb and gutter or driveway approach work is necessary the City Standard for AC plugs is 2’ minimum from edge of gutter pan at a minimum depth/thickness of 6”.

The City’s Standard Details for Construction are attached to these technical specifications.
b. Submittals: Concrete mix design, concrete curing compound, asphalt mix design, and aggregate baserock mix design
c. Order of Work: Contractor shall demo concrete sidewalk or curb & gutter to expose roots. Roots in conflict with the replacement sidewalk shall be hand cut and not torn-out using force or equipment. Work shall be performed by an ISA certified arborist. Roots shall be trimmed approximately 3 inches below the aggregate base. Contractor shall perform demo and replacement of sidewalk and all incidentals at each location within 5 working days, including root removals in coordination with current City Tree Contractor/Arborist. d. Materials: Portland Cement Concrete: Portland cement concrete shall be in conformance with Section 90 "Portland Cement Concrete" of the CSS for Class B Concrete. Curing Compound: shall be in conformance with Section 90 "Portland Cement Concrete" of the CSS. Asphalt Concrete: Asphalt concrete used shall be Type A, 2" medium in accordance with Section 39 of the CSS.

Aggregate base: AB shall be Class 2, 3/4" maximum grading, and shall conform to the provisions in Section 26, "Aggregate Bases”, of the Standard Specifications and these special provisions.
e. Measurement and Payment: The contract unit price paid, as shown in the Bid Schedule, for ”Remove and Replace Concrete Sidewalk” shall include full compensation for performing all of the work listed above, complete in place, including traffic/pedestrian control/signage, and all incidentals as specified in theses Standard Specifications and these Special Provisions, 2007 City Design Standards, and as directed by the City Project Manager.

TECHNICAL PROVISIONS

2.07 TREE REMOVAL
The Sidewalk Repair Contractor will coordinate with the City’s Tree Contractor to open the sidewalk, so that the Tree Contractor can remove any trees necessary.

However, if the tree has been removed prior to the sidewalk being opened up, the Sidewalk Repair Contractor would be responsible for removing any remaining tree root.

For existing trees, the Sidewalk Repair Contractor would open up the sidewalk, and the City’s Tree Contractor will remove both the tree and the tree roots. .

Coordination of tree removals will be discussed at the pre-construction meeting.

2.08 ONE-YEAR WARRANTY BOND
The City requires a one-year warranty bond in the amount of 50% of the final contract price. The warranty bond is included in the bid documents along with the Payment and Performance Bond. The contract requires the Contractor to guarantee its work and that of its subcontractors against defects in materials or workmanship, which are discovered during the one (1) year period commencing with recordation of the Notice of Completion.

END

REVISED BID SCHEDULE
2023 SIDEWALK REPAIR PROJECT
NAME OF BIDDER: ______________________________________
This Bid Schedule must be completed in and included with the Bid Proposal. The unit cost for each item must be inclusive of all costs, whether direct or indirect, including profit and overhead. The sum of all amounts entered in the “Extended Total” column must be identical to the Base Bid price entered in Section 1 of the Bid Proposal Form. Quantities shown are required for bid purposes and may or may not be final pay quantities. Actual quantities, if different, must be substantiated during the Project by Contractor (either by field measurement, trucking tags, or other means acceptable to the City’s Project Manager).

Bid Item Description of
Bid Item
Approximate
Quantity/Unit of
Measure
Unit
Price
Extended
Total
1 Remove and replace
concrete sidewalks and
driveways at locations
indicated on attached list. 5,877 sq. ft.
2 Curb and Gutter
Replacement 470 sq. ft.
3 Asphalt Plugs In the field
Revised Bid Schedule Total

END OF REVISED BID SCHEDULE

COMMUNITY SERVICES DEPARTMENT
17575 PEAK AVENUE
MORGAN HILL, CA 95037
GENERAL:(408) 779-7271
FAX:(408) 779-3117
WWW.MORGANHILL.CA.GOV

Addendum #1
ADDENDUM NO. 2
CSD-2023-021
DATE: FEBRUARY 27, 2023
TO: ALL RESPONDING PARTIES TO THE INVITATION TO BID FOR THE 2023 SIDEWALK REPAIR PROJECT
FROM: Keri Russell, Maintenance Manager
Cynthia Iwanaga, Management Analyst
SUBJECT: Responses to Questions and Clarifications for the 2023 Sidewalk Repair Project Added: Revised Bid Schedule dated 2/27/2023

1. Please clarify the unit for the Asphalt Plug, does in the field mean each piece, by ton or SF etc.?Please see the attached Revised Bid Schedule dated 2/27/2023. The unit pricing has been clarified to be by SF.

The total estimated SF is 470 SF.

All proposers should submit the Revised Bid Schedule dated 2/27/2023 with their bid proposal.

2. The due date and time for this bid remain the same, Thursday, March 2, 2023, at 10:30 a.m. via e-mail to [email protected] Late proposals will not be accepted.

THIS DOCUMENT AND THE ATTACHMENTS SHALL BECOME PART OF THE PROJECTS SPECIFICATION Bidder must acknowledge receipt of this Addendum in the Bid Proposal (Section 2. Addenda) that is submitted to the City.

REVISED BID SCHEDULE
dated 2/27/2023
2023 SIDEWALK REPAIR PROJECT
NAME OF BIDDER: ______________________________________
This Bid Schedule must be completed in and included with the Bid Proposal. The unit cost for each item must be inclusive of all costs, whether direct or indirect, including profit and overhead. The sum of all amounts entered in the “Extended Total” column must be identical to the Base Bid price entered in Section 1 of the Bid Proposal Form. Quantities shown are required for bid purposes and may or may not be final pay quantities. Actual quantities, if different, must be substantiated during the Project by Contractor (either by field measurement, trucking tags, or other means acceptable to the City’s Project Manager).

Bid Item Description of
Bid Item
Approximate
Quantity/Unit of
Measure
Unit
Price
Extended
Total
1 Remove and replace
concrete sidewalks and
driveways at locations
indicated on attached list. 5,877 sq. ft.
2 Curb and Gutter
Replacement at locations
indicated on attached list. 470 sq. ft.
3 Asphalt Plugs 470 sq. ft.

Revised Bid Schedule Total
END OF REVISED BID SCHEDULE dated 2/27/2023

3/13/2023
3/13/2023

7 CITY COUNCIL STAFF REPORT
MEETING DATE: April 19, 2023
PREPARED BY:

Hilary Holeman, Administrative Analyst
APPROVED BY: City Manager

RATIFY CITY POSITIONS ON PENDING LEGISLATION

RECOMMENDATION(S)

1. Ratify the City’s position on pending legislation, Assembly Bill 1708 (Muratsuchi) Theft;

2. Ratify the City’s position on pending legislation, Assembly Bill 480 (Ting) Surplus Land; and

3. Ratify the City's position on pending legislation, Senate Bill 423 (Wiener) Land use: streamlined housing approvals: multifamily housing developments.

COUNCIL PRIORITIES, GOALS & STRATEGIES
City Council Ongoing Priorities
Enhancing Public Safety and Quality of Life
Preserving and Cultivating Public Trust
Advocating for Local, Regional, and State Legislative Initiatives 2022-2023 Strategic Priorities
Economic Development
REPORT NARRATIVE:

Per Resolution No. 20-010 (Attachment 1), the City Council recognizes occasional situations arise where communication indicating support or opposition on pending State, County, or other regional boards’ legislation or action that could be important and may occur prior to the next scheduled City Council meeting. Under these circumstances, the Mayor or City Manager is delegated the authority to prepare, execute and transmit written or verbal communications indicating a City’s position when any of the following criteria are met: a) the League of California Cities, or a similar organization, has requested the City to comment or take a position, b) the timing to express a position occurs prior to the next scheduled Council meeting, and c) the pending State, County, or other regional boards’ legislation or action clearly supports or clearly hinders the implementation or fulfillment of an adopted City Council Priority, Goal, or Strategy in a substantial manner such that it is in the best interest of the City to indicate its comment or position. When this occurs, a written report to the City Council for acceptance is required at the next possible meeting.

7 AB 1708 Theft
On March 22, 2023, the League of California Cities sent an Action Alert (Attachment 2) for cities to send letters of support for AB 1708 Theft. On April 4, 2023, the Mayor communicated a letter of support (Attachment 3) electronically via the California Legislature Position Letter Portal and the League of California Cities, and sent the letter to the Assembly Public Safety Committee Chair.

Bill Summary
Existing law, the Safe Neighborhoods and Schools Act, enacted by Proposition 47, as approved by the voters at the November 4, 2014, statewide general election, defines and prohibits an act of shoplifting and prohibits prosecution for an act of shoplifting under any other law. This bill would refine the definition of shoplifting and would specifically exclude certain offenses from prosecution as shoplifting, including, among others, the theft of a firearm or vehicle, identity theft, and credit card fraud. These offenses are prosecuted as misdemeanors or felonies elsewhere in the law.

Existing law requires, except as excluded, the theft of any property valued below $950 to be charged as petty theft, a misdemeanor. This bill would similarly exclude certain offenses from this provision, including, among others, the theft of a vehicle, identity theft, and credit card fraud.

Existing law provides that a person with a prior conviction for specified sex offenses may be charged with a felony for shoplifting or for theft of property not exceeding $950 in value. This bill would require a person convicted of petty theft or shoplifting, if the person has 2 or more prior convictions for specified theft-related offenses, to be punished by imprisonment in the county jail for up to one year, or for 16 months, or 2 or 3 years.

Existing law, until January 1, 2026, authorizes a city or county prosecuting authority or county probation department to create a diversion or deferred entry of judgment program pursuant to this section for persons who commit a theft offense or repeat theft offenses, as specified. This bill would authorize a city or county prosecuting authority or county probation department to create a diversion program for persons who commit theft or repeat theft offenses, as specified.

This bill would provide that the provisions of the bill that amend Proposition 47 would become effective only upon approval of the voters, and would provide for the submission of those provisions to the voters for approval at the next statewide general election.

The full AB 1708 Bill Text is included as Attachment 4
AB 480 Surplus Land
On March 23, 2023, the California Association for Local Economic Development (CALED) encouraged local governments to join them in opposition to AB 480 Surplus Land. On April 4, 2023, the Mayor communicated a letter of opposition (Attachment 5) electronically via the California Legislature Position Letter Portal and the League of

7 California Cities, and sent the letter to the author, Assembly Member Ting.

Bill Summary
Existing law prescribes requirements for the disposal of surplus land by a local agency, as defined, and requires, except as provided, a local agency disposing of surplus land to comply with certain notice requirements before disposing of the land or participating in negotiations to dispose of the land with a prospective transferee, particularly that the local agency send a notice of availability to specified entities that have notified the Department of Housing and Community Development of their interest in surplus land, as specified. Under existing law, if the local agency receives a notice of interest, the local agency is required to engage in good faith negotiations with the entity desiring to purchase or lease the surplus land. Existing law requires a local agency to take formal action in a regular public meeting to declare land is surplus and is not necessary for the agency’s use and to declare land as either “surplus land” or “exempt surplus land,” as supported by written findings, before a local agency may take any action to dispose of it consistent with an agency’s policies or procedures. This bill would recast that provision and would authorize, in specified instances, that a local agency administratively declare land as “exempt surplus land” if the declaration and findings are published and available for public comment at least 30 days before the declaration takes effect. The bill would also require a local agency to provide a written notification to the Department of Housing and Community Development of its declaration and findings 30 days before disposing of land declared “exempt surplus land.” Because this bill would require local officials to perform additional duties, it would impose a state-mandated local program.

The full AB 480 Bill Text is included as Attachment 6.

SB 423 Land use: streamlined housing approvals: multifamily housing developments
On March 16, 2023, the League of California Cities sent an Action Alert (Attachment 7) for cities to send letters of opposition to SB 423 Land use: streamlined housing approvals: multifamily housing developments. On April 10, 2023, the Mayor communicated a letter of support (Attachment 8) electronically via the California Legislature Position Letter Portal and the League of California Cities, and sent the letter to the Senate Committee on Housing Chair.

Bill Sumary
This bill would modify and expand SB 35 provisions that allow certain multifamily housing developments to take advantage of a streamlined, ministerial approval process.

Specifically, this bill would:
(1) Remove the 2026 sunset and makes the statutes permanent (2) Apply SB 35 provisions to the Coastal Zone
(3) Allow the State to approve housing developments on property they own or lease (4) Prohibit a city from enforcing its inclusionary housing ordinance if the income limits are higher than those in SB 35
The full SB 423 Bill Text is included as Attachment 9.

7 COMMUNITY ENGAGEMENT:

Inform
This report serves to inform the community on the City’s position on pending legislation that directly impacts the City of Morgan Hill.

ALTERNATIVE ACTIONS:

The City Council could rescind the positions taken.

PRIOR CITY COUNCIL AND COMMISSION ACTIONS:

City Council periodically ratifies City positions on various pending State, County or other regional board legislation or actions that have a direct impact on the City of Morgan Hill.

FISCAL AND RESOURCE IMPACT:

Tracking legislation is an activity included in the annual workplan of the City Manager’s Office.

CEQA (California Environmental Quality Act):

Not a Project - administrative action/activity without an impact.

ACTION ALERT
AB 1708 (Muratsuchi) Theft.

SUPPORT
Background: Proposition 47 made promises of safe neighborhoods, but the unintended consequences that followed have provided anything but. Our communities deserve better, and cities are more than ready to find solutions that fix Proposition 47.

What does AB 1708 specifically do?
• Require a person convicted of petty theft or shoplifting, with two or more prior convictions for specified theft-related offenses, to be punished by imprisonment in county jail for up to one year.
• Authorize a city, county prosecuting authority, or county probation department to create a diversion program for persons who commit repeat theft offenses.
• Any provisions that amend Proposition 47 would become effective only upon approval by the voters at the next statewide general election.

Talking points:
• According to a February 2023 study conducted by the Public Policy Institute of California, a strong majority of Californians worry they or a family member will be a victim of a crime.
• Cities are feeling impacts from crime-related activity in their communities and are looking for solutions to fix Proposition 47. According to a February 2023 study conducted by the Public Policy Institute of California, a strong majority of Californians worry they or a family member will be a victim of a crime (21% very, 44% somewhat).
• We need to increase accountability for those who continue to create victims throughout our communities.
• Mental health and substance use treatment programming are essential to lowering recidivism rates and increasing community wellness.
• AB 1708 would provide appropriate revisions to Proposition 47 that more holistically address the root causes of crime.

AB 1708 would amend Proposition 47 to increase accountability for repeat theft offenders and offer pathways for pre-plea diversion programming.

Voice your support for AB 1708 by contacting your legislators and submitting a letter TODAY. A sample letter is attached.

ACTION

17575 Peak Avenue
Morgan Hill, CA 95037-4128
TEL: (408) 779-7271
FAX: (408) 779-3117
www.morganhill.ca.gov
April 3, 2023
The Honorable Reginald Jones-Sawyer
Chair, Assembly Public Safety Committee
Legislative Office Building
1020 N Street, Room 111
Sacramento, CA 95814
RE: AB 1708 (Muratsuchi) Theft. - Notice of SUPPORT (As Amended 3/9/23) Dear Assembly Member Jones-Sawyer,
The City of Morgan Hill is pleased to support AB 1708 (Muratsuchi). This measure would increase accountability for repeat theft offenders and offer pathways for pre-plea diversion programming. If passed, the bill would send the issue to the voters for approval at the next statewide general election.

This strategy is one of many supported by cities to address crime and its underlying causes. We remain committed to improving California’s carceral systems, interrupting and ending cycles of recidivism, and building a community-based system of care that appropriately meets the needs of all community members.

Proposition 47 of 2014 made promises of safe neighborhoods, but the unintended consequences that followed have provided anything but. According to a February 2023 study conducted by the Public Policy Institute of California, a strong majority of Californians worry they or a family member will be a victim of a crime (21% very, 44% somewhat).

This is the sentiment being felt by residents of cities throughout the state.

The City of Morgan Hill has case study after case study that highlights the negative impacts of Proposition 47 such as one repeat offender being arrested four times in four different stolen cars within a month and repeat offenders engaging in over 40 take-over robberies/burglaries at Ulta Beauty Store, Target and Walmart. Post AB 109 and Proposition 47, our overall property crime rose 19.2%. Larcenies increased 40% after Prop 47 was passed. Some of our big box retailers have internal policies to no longer report larcenies and/or shoplifting. With the installation of license plate readers in August 2021 to December 2022, Officers have arrested 178 repeat offenders in stolen cars, charged them with 634 offenses and recovered 138 stolen vehicles - 98% lived in other jurisdictions and the majority had prior arrests for theft related crimes.

Our communities deserve better, and cities are more than ready to find solutions that fix Proposition 47. The City of Morgan Hill is keenly interested in exploring additional strategies to address the impacts of crime in our communities.

This includes resources to improve community safety through prevention and early intervention programming, as well as improved re-entry service provision for our formerly incarcerated community members. While these provisions have historically been the responsibility of state and county departments, cities are interested in increased collaboration to meet these urgent needs.

For these reasons, the City of Morgan Hill requests your support on AB 1708.

Sincerely,
Mark Turner
Mayor
cc: The Honorable Al Muratsuchi, [email protected] Senator John Laird
Assemblymember Gail Pellerin
Seth Miller, Regional Public Affairs Manager, League of California Cities, [email protected] Meg Desmond, League of California Cities, [email protected]

AMENDED IN ASSEMBLY MARCH 9, 2023
california legislature—2023–24 regular session
ASSEMBLY BILL No. 1708
Introduced by Assembly Member Muratsuchi
February 17, 2023
An act relating to corrections. to amend Sections 459.5 and 490.2 of, to add Section 666.1 to, and to add Chapter 2.97 (commencing with Section 1001.98) to Title 6 of Part 2 of, the Penal Code, relating to theft.
legislative counsel’s digest
AB 1708, as amended, Muratsuchi. Corrections: rehabilitative programing. Theft.
(1)  Existing law, the Safe Neighborhoods and Schools Act, enacted by Proposition 47, as approved by the voters at the November 4, 2014, statewide general election, defines and prohibits an act of shoplifting and prohibits prosecution for an act of shoplifting under any other law.

This bill would refine the definition of shoplifting and would specifically exclude certain offenses from prosecution as shoplifting, including, among others, the theft of a firearm or vehicle, identity theft, and credit card fraud.
(2)  Existing law requires, except as excluded, the theft of any property valued below $950 to be charged as petty theft, a misdemeanor.

This bill would similarly exclude certain offenses from this provision, including, among others, the theft of a vehicle, identity theft, and credit card fraud.
(3)  Existing law provides that a person with a prior conviction for specified sex offenses may be charged with a felony for shoplifting or for theft of property not exceeding $950 in value.

98

This bill would require a person convicted of petty theft or shoplifting, if the person has 2 or more prior convictions for specified theft-related offenses, to be punished by imprisonment in the county jail for up to one year, or for 16 months, or 2 or 3 years.
(4)  Existing law, until January 1, 2026, authorizes a city or county prosecuting authority or county probation department to create a diversion or deferred entry of judgment program pursuant to this section for persons who commit a theft offense or repeat theft offenses, as specified.

This bill would authorize a city or county prosecuting authority or county probation department to create a diversion program for persons who commit theft or repeat theft offenses, as specified. (5)  This bill would provide that the provisions of the bill that amend Proposition 47 would become effective only upon approval of the voters, and would provide for the submission of those provisions to the voters for approval at the next statewide general election.

Existing law requires the Department of Corrections and Rehabilitation to conduct rehabilitative programming in a manner that meets specified requirements, including minimizing program wait times and offering a variety of program opportunities to inmates regardless of security level or sentence length.

This bill would express the intent of the Legislature to enact legislation that would increase accountability for repeat offenders through participation in rehabilitative services.

Vote: majority. Appropriation: no. Fiscal committee: no yes.

State-mandated local program: no.

The people of the State of California do enact as follows:
line 1 SECTION 1. Section 459.5 of the Penal Code is amended to line 2 read:
line 3 459.5. (a)  Notwithstanding Section 459, shoplifting is defined line 4 as entering a commercial establishment with intent to commit line 5 larceny while that establishment is open during regular business line 6 hours, with the intent to steal retail property or merchandise, where line 7 the value of the property that is taken or intended to be taken does line 8 not exceed nine hundred fifty dollars ($950). Any other entry into line 9 a commercial establishment with intent to commit larceny is line 10 burglary. Shoplifting shall be punished as a misdemeanor, except line 11 that a person with one or more prior convictions for an offense 98 AB 1708 — 2 —

line 1 specified in clause (iv) of subparagraph (C) of paragraph (2) of line 2 subdivision (e) of Section 667 or for an offense requiring line 3 registration pursuant to subdivision (c) of Section 290 may be line 4 punished pursuant to subdivision (h) of Section 1170. line 5 (b)  Any act of shoplifting as defined in subdivision (a) shall be line 6 charged as shoplifting. No person who is charged with shoplifting line 7 may also be charged with burglary or theft of the same property. line 8 (c)  This section does not apply to theft of a firearm; forgery, as line 9 described in Chapter 4 (commencing with Section 470); the line 10 unlawful sale, transfer, or conveyance of an access card in line 11 violation of Section 484e; forgery of an access card in violation line 12 of Section 484f; the unlawful use of an access card in violation of line 13 Section 484g; theft from an elder or dependent adult in violation line 14 of subdivision (e) of Section 368; receiving stolen property in line 15 violation of Section 496; embezzlement, as described in Chapter line 16 6 (commencing with Section 503); identity theft in violation of line 17 Section 530.5; or the theft or unauthorized use of a vehicle in line 18 violation of Section 10851 of the Vehicle Code. line 19 (d)  As used in this section, the following terms have the following line 20 meanings:
line 21 (1)  “Retail property or merchandise” means any article, line 22 product, commodity, item, or component intended to be sold in line 23 retail commerce.
line 24 (2)  “Value” means the retail value of an item as advertised by line 25 the affected retail establishment, including applicable taxes. line 26 SEC. 2. Section 490.2 of the Penal Code is amended to read:
line 27 490.2. (a)  Notwithstanding Section 487 or any other provision line 28 of law defining grand theft, obtaining any property by theft where line 29 the value of the money, labor, real or personal property taken does line 30 not exceed nine hundred fifty dollars ($950) shall be considered line 31 petty theft and shall be punished as a misdemeanor, except that line 32 such person may instead be punished pursuant to subdivision (h) line 33 of Section 1170 if that person has one or more prior convictions line 34 for an offense specified in clause (iv) of subparagraph (C) of line 35 paragraph (2) of subdivision (e) of Section 667 or for an offense line 36 requiring registration pursuant to subdivision (c) of Section 290. line 37 (b)  This section shall not be applicable to any theft that may be line 38 charged as an infraction pursuant to any other provision of law. line 39 (c)  This section shall does not apply to theft of a firearm. line 40 firearm; forgery, as described in Chapter 4 (commencing with 98 — 3 — AB 1708

line 1 Section 470); the unlawful sale, transfer, or conveyance of an line 2 access card in violation of Section 484e; forgery of an access card line 3 in violation of Section 484f; the unlawful use of an access card in line 4 violation of Section 484g; theft from an elder or dependent adult line 5 in violation of subdivision (e) of Section 368; receiving stolen line 6 property in violation of Section 496; embezzlement, as described line 7 in Chapter 6 (commencing with Section 503); identity theft in line 8 violation of Section 530.5; or the theft or unauthorized use of a line 9 vehicle in violation of Section 10851 of the Vehicle Code. line 10 SEC. 3. Section 666.1 is added to the Penal Code, to read:
line 11 666.1. (a)  (1)  Notwithstanding any other law, a person who, line 12 having two or more convictions for any of the offenses listed in line 13 paragraph (2), and who is subsequently convicted of petty theft or line 14 shoplifting, is punishable by imprisonment in the county jail not line 15 exceeding one year, or pursuant to subdivision (h) of Section 1170. line 16 (2)  This section applies to the following offenses:
line 17 (A)  Petty theft, as described in Section 488.
line 18 (B)  Grand theft, as described in Section 487.
line 19 (C)  Theft from an elder or dependent adult in violation of line 20 subdivision (e) of Section 368.
line 21 (D)  The theft or unauthorized use of a vehicle, as described in line 22 Section 10851 of the Vehicle Code.
line 23 (E)  Burglary, as described in Section 459.
line 24 (F)  Carjacking, as described in Section 215.
line 25 (G)  Robbery, as described in Section 211.
line 26 (H)  Receiving stolen property, as described in Section 496. line 27 (I)  Shoplifting, as described in Section 459.5. line 28 (J)  Mail theft, as described in subdivision (e) of Section 530.5. line 29 (b)  This section shall not be construed to preclude prosecution line 30 or punishment pursuant to any other law.
line 31 SEC. 4. Chapter 2.97 (commencing with Section 1001.98) is line 32 added to Title 6 of Part 2 of the Penal Code, to read:
line 33
line 34 Chapter 2.97. Theft Crimes Diversion
line 35
line 36 1001.98. (a)  The city or county prosecuting attorney or county line 37 probation department may create a diversion program pursuant line 38 to this section for persons who commit a theft offense or repeat line 39 theft offenses. The program may be conducted by the prosecuting line 40 attorney’s office or the county probation department. 98 AB 1708 — 4 —

line 1 (b)  Except as provided in subdivision (e), this chapter does not line 2 limit the power of the prosecuting attorney to prosecute theft or line 3 repeat theft.
line 4 (c)  If a county creates a diversion or deferred entry of judgment line 5 program for individuals committing theft or repeat theft offenses, line 6 on receipt of a case or at arraignment, the prosecuting attorney line 7 shall either refer the case to the county probation department to line 8 conduct a prefiling investigation report to assess the line 9 appropriateness of program placement or, if the prosecuting line 10 attorney’s office operates the program, determine if the case is line 11 one that is appropriate to be referred to the program. In line 12 determining whether to refer a case to the program, the probation line 13 department or prosecuting attorney shall consider, but is not line 14 limited to, all of the following factors:
line 15 (1)  Any prefiling investigation report conducted by the county line 16 probation department or nonprofit contract agency operating the line 17 program that evaluates the individual’s risk and needs and the line 18 appropriateness of program placement.
line 19 (2)  If the person demonstrates a willingness to engage in line 20 community service, restitution, or other mechanisms to repair the line 21 harm caused by the criminal activity and address the underlying line 22 drivers of the criminal activity.
line 23 (3)  If a risk and needs assessment identifies underlying line 24 substance abuse or mental health needs or other drivers of criminal line 25 activity that can be addressed through the diversion or deferred line 26 entry of judgment program.
line 27 (4)  If the person has a violent or serious prior criminal record line 28 or has previously been referred to a diversion program and failed line 29 that program.
line 30 (5)  Any relevant information concerning the efficacy of the line 31 program in reducing the likelihood of participants committing line 32 future offenses.
line 33 (d)  On referral of a case to the program, a notice shall be line 34 provided to the person alleged to have committed the offense with line 35 both of the following information:
line 36 (1)  The date by which the person must contact the diversion line 37 program or deferred entry of judgment program in the manner line 38 designated by the supervising agency.
line 39 (2)  A statement of the penalty for the offense or offenses with line 40 which that person has been charged.
98 — 5 — AB 1708

line 1 (e)  The prosecuting attorney may enter into a written agreement line 2 with the person to refrain from, or defer, prosecution on the offense line 3 or offenses on the following conditions:
line 4 (1)  Completion of the program requirements such as community line 5 service or courses reasonably required by the prosecuting attorney. line 6 (2)  Making adequate restitution or an appropriate substitute line 7 for restitution to the victim or victims.
line 8 SEC. 5. This act amends the Safe Neighborhoods and Schools line 9 Act, an initiative statute approved by the voters at the November line 10 4, 2014, statewide general election as Proposition 47, and shall line 11 become effective only when submitted to and approved by the line 12 voters. The Secretary of State shall submit Sections 1, 2, and 3 of line 13 this act for approval by the voters at a statewide election in line 14 accordance with Section 9040 of the Elections Code. line 15 SECTION 1. It is the intent of the Legislature to enact line 16 legislation that would increase accountability for repeat offenders line 17 through participation in rehabilitative services.

O
98 AB 1708 — 6 —

17575 Peak Avenue
Morgan Hill, CA 95037-4128
TEL: (408) 310-4647
FAX: (408) 779-3117
www.morganhill.ca.gov
April 4, 2023
The Honorable Philip Ting
State Capitol, Ste. 8230
Sacramento, CA 95814
Dear Assembly Member Ting:

The City of Morgan Hill opposes AB 480, which undermines the City’s ability to pursue appropriate economic development activities on City owned properties, by expanding the scope of authority for Department of Housing and Community Development (HCD) to review “any action to dispose of land,” which would include properties retained for agency use, properties declared “exempt surplus,” and properties that local agencies are authorized by other laws to acquire and dispose of for economic development purposes.

The implementation of the Surplus Lands Act (SLA), including HCD’s recent guidelines, have created immense delays and difficulties for local government agencies dealing with the control and disposal of their local properties. Regrettably, AB 480 would compound those difficulties by expanding state reviews and delays affecting properties retained for agency use and declared exempt surplus.

The Legislature should evaluate the unintended consequences caused by implementation of the existing law on local agency activities, including unresolved conflicts with other laws and state policy priorities the Legislature has enacted that affect the disposal of local agency property.

Please feel free to contact our Development Services Director, Jennifer Carman at [email protected] with any questions.

Sincerely,
Mark Turner, Mayor
Cc: Cecilia Aguiar Curry, Chair, Assembly Local Government Committee Buffy Wicks, Chair, Assembly Committee on Housing and Community Development Gurbax Sahota, Chief Executive Officer, CA Association for Local Economic Development Senator John Laird
Assemblymember Gail Pellerin
Seth Miller, Regional Public Affairs Manager, League of California Cities, [email protected] Meg Desmond, League of California Cities, [email protected]

AMENDED IN ASSEMBLY MARCH 14, 2023
california legislature—2023–24 regular session
ASSEMBLY BILL No. 480
Introduced by Assembly Member Ting
(Principal coauthor: Senator Umberg)
February 7, 2023
An act to amend Sections 54221, 54222, 54222.5, 54223, 54224, 54225, 54227, and 54230.5 of of, and to add Section 54221.5 to, the Government Code, relating to local government.
legislative counsel’s digest
AB 480, as amended, Ting. Surplus land.

Existing law prescribes requirements for the disposal of surplus land by a local agency, as defined, and requires, except as provided, a local agency disposing of surplus land to comply with certain notice requirements before disposing of the land or participating in negotiations to dispose of the land with a prospective transferee, particularly that the local agency send a notice of availability to specified entities that have notified the Department of Housing and Community Development of their interest in surplus land, as specified. Under existing law, if the local agency receives a notice of interest, the local agency is required to engage in good faith negotiations with the entity desiring to purchase or lease the surplus land.

Existing law requires a local agency to take formal action in a regular public meeting to declare land is surplus and is not necessary for the agency’s use and to declare land as either “surplus land” or “exempt surplus land,” as supported by written findings, before a local agency may take any action to dispose of it consistent with an agency’s policies or procedures.

98

This bill would recast that provision and would authorize, in specified instances, that a local agency administratively declare land as “exempt surplus land” if the declaration and findings are published and available for public comment at least 30 days before the declaration takes effect.

The bill would also require a local agency to provide a written notification to the Department of Housing and Community Development of its declaration and findings 30 days before disposing of land declared “exempt surplus land.” Because this bill would require local officials to perform additional duties, it would impose a state-mandated local program.

Existing law defines “exempt surplus land,” for which a local agency is not required to follow the requirements for disposal of surplus land, except as provided, as, among other things, surplus land that is subject to valid legal restrictions that are not imposed by the local agency and that would make housing prohibited, as specified.

This bill would require that those legal restrictions be documented and verified in writing by the relevant agencies that have authority relating to the restrictions.

Existing law defines terms for purposes of these provisions, including specifies that, for purposes of these provisions, the term “exempt surplus land,” which includes, among other things, surplus land that is put out to open, competitive bid by a local agency, as specified, for purposes of a mixed-use development that is more than one acre in area, that includes not less than 300 housing units, and that restricts at least 25% of the residential units to lower income households with an affordable sales price or an affordable rent for a minimum of 55 years for rental housing and 45 years for ownership housing.

This bill would modify these provisions to require that the mixed-use development include not less than 300 residential units.

Existing law also defines exempt surplus land as, among other things, land that was transferred by the state to a local agency, as specified, that includes residential units that are restricted to persons and families of low or moderate income with an affordable sales price or rent, at least 80% of which shall be restricted to persons and families of lower income.

This bill would expand the definition of exempt surplus land to include land that is owned by a California public-use airport on which residential use is prohibited pursuant to specified federal law.

Existing law requires any local agency disposing of surplus land to send a written notice of availability of the property to specified entities. 98 AB 480 — 2 —

Existing law requires the Department of Housing and Community Development to maintain on its internet website a list of all notices of availability throughout the state.

This bill would require the department to also maintain on its internet website a list of all entities, including housing sponsors, that have notified the department of their interest in surplus land for the purpose of developing low- and moderate-income housing. The bill would make other nonsubstantive changes to provisions that describe the entities to which notices of availability for developing low- and moderate-income housing, for open-space purposes, and for school facilities construction are required to be sent.

Existing law requires that an entity proposing to use surplus land for developing low- and moderate-income housing agree to make available a specified percentage of the total number of units developed at affordable housing cost or affordable rent to lower income households, as specified, and that this requirement be contained in a covenant or restriction recorded against the surplus land at the time of the sale that shall run with the land and be enforceable by specified entities and persons.

This bill would make nonsubstantive changes to the provisions that describe the entities and persons that can enforce the covenant or restriction.

Existing law specifies that after the disposing agency has received a notice of interest from the entity desiring to purchase or lease the land, if price or terms cannot be agreed upon after a good faith negotiation period, the land may be disposed of, as specified.

This bill would recast that provision to state that after the specified good faith negotiation, the local agency may dispose of the surplus land, as specified.

Existing law proclaims that nothing in these provisions relating to the disposition of surplus property shall preclude a local agency, housing authority, or redevelopment agency that purchases land from a disposing agency from reconveying the land to a nonprofit or for-profit housing developer for development of low- and moderate-income housing.

This bill would modify that provision to remove reference to housing authorities and redevelopment agencies and make other nonsubstantive changes.

Existing law specifies that any public agency disposing of surplus land to a specified entity that intends to use the land for park or recreation purposes, for open-space purposes, for school purposes, or 98 — 3 — AB 480

for low- and moderate-income housing purposes may provide for a payment period of up to 20 years in any contract of sale or sale by trust deed for the land.

This bill would modify those provisions to refer, instead, to a local agency disposing of surplus land.

Existing law authorizes a local agency to negotiate concurrently with all entities that provide notice of interest for the purpose of developing affordable housing that meets specified requirements.

This bill would modify that provision to reference low- and moderate-income housing that meets specified requirements. The bill would make other nonsubstantive changes to this provision.

Existing law makes a local agency that disposes of land in violation of these provisions after receiving notice from the Department of Housing and Community Development liable for a penalty, as specified. of 30% of the final sale price of the surplus land sold for a first violation and 50% for any subsequent violation.

This bill would, instead, make a local agency that disposes of surplus land in violation of these provisions after receiving a notification from the Department of Housing and Community Development, as specified, that the local agency is in violation of these provisions liable for a penalty of 30% of the greater of the final sale price, or of the fair market value at the time of disposition, as determined by an independent appraisal, of the surplus land for a first violation, and 50% of the greater of the 2 sums, for any subsequent violation. The bill would make nonsubstantive changes to, and correct an erroneous cross-reference in, those provisions.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state.

Statutory provisions establish procedures for making that reimbursement.

This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.

Vote: majority. Appropriation: no. Fiscal committee: yes.

State-mandated local program: no yes.
98 AB 480 — 4 —

The people of the State of California do enact as follows:
line 1 SECTION 1. Section 54221 of the Government Code is line 2 amended to read:
line 3 54221. As used in this article, the following definitions shall line 4 apply:
line 5 (a)  (1)  “Local agency” means every city, whether organized line 6 under general law or by charter, county, city and county, district, line 7 including school, sewer, water, utility, and local and regional park line 8 districts of any kind or class, joint powers authority, successor line 9 agency to a former redevelopment agency, housing authority, or line 10 other political subdivision of this state and any instrumentality line 11 thereof that is empowered to acquire and hold real property. line 12 (2)  The Legislature finds and declares that the term “district” line 13 as used in this article includes all districts within the state, line 14 including, but not limited to, all special districts, sewer, water, line 15 utility, and local and regional park districts, and any other political line 16 subdivision of this state that is a district, and therefore the changes line 17 in paragraph (1) made by the act adding this paragraph that specify line 18 that the provisions of this article apply to all districts, including line 19 school, sewer, water, utility, and local and regional park districts line 20 of any kind or class, are declaratory of, and not a change in, line 21 existing law.
line 22 (b)  (1)  “Surplus land” means land owned in fee simple by any line 23 local agency for which the local agency’s governing body takes line 24 formal action in a regular public meeting declaring that the land line 25 is surplus and that is not necessary for the agency’s use. Land shall line 26 be declared either “surplus land” or “exempt surplus land,” as line 27 supported by written findings, before a local agency may take any line 28 action to dispose of it consistent with an agency’s policies or line 29 procedures. A local agency, on an annual basis, may declare line 30 multiple parcels as “surplus land” or “exempt surplus land.” use line 31 as declared by the local agency pursuant to Section 54221.5. line 32 (2)  “Surplus land” includes land held in the Community line 33 Redevelopment Property Trust Fund pursuant to Section 34191.4 line 34 of the Health and Safety Code and land that has been designated line 35 in the long-range property management plan approved by the line 36 Department of Finance pursuant to Section 34191.5 of the Health line 37 and Safety Code, either for sale or for future development, but 98 — 5 — AB 480

line 1 does not include any specific disposal of land to an identified entity line 2 described in the plan.
line 3 (3)  Nothing in this article prevents a local agency from obtaining line 4 fair market value for the disposition of surplus land consistent with line 5 Section 54226.
line 6 (c)  (1)  Except as provided in paragraph (2), “agency’s use” line 7 shall include, but not be limited to, land that is being used, or is line 8 planned to be used pursuant to a written plan adopted by the local line 9 agency’s governing board for, or is disposed to support pursuant line 10 to subparagraph (B) of paragraph (2) board, for agency work or line 11 operations, including, but not limited to, utility sites, watershed line 12 property, land being used for conservation purposes, land for line 13 demonstration, exhibition, or educational purposes related to line 14 greenhouse gas emissions, and buffer sites near sensitive line 15 governmental uses, including, but not limited to, waste water line 16 wastewater treatment plants.
line 17 (2)  (A)  “Agency’s use” shall not include commercial or line 18 industrial uses or activities, including nongovernmental retail, line 19 entertainment, or office development. Property disposed of for the line 20 sole purpose of investment or generation of revenue shall not be line 21 considered necessary for the agency’s use.
line 22 (B)  In the case of a local agency that is a district, excepting line 23 those whose primary mission or purpose is to supply the public line 24 with a transportation system, “agency’s use” may include line 25 commercial or industrial uses or activities, including line 26 nongovernmental retail, entertainment, or office development or line 27 be for the sole purpose of investment or generation of revenue if line 28 the agency’s governing body takes action in a public meeting line 29 declaring that the use of the site will do one of the following:
line 30 (i)  Directly further the express purpose of agency work or line 31 operations.
line 32 (ii)  Be expressly authorized by a statute governing the local line 33 agency, provided the district complies with Section 54233.5 if line 34 applicable.
line 35 (d)  “Open-space purposes” means the use of land for public line 36 recreation, enjoyment of scenic beauty, or conservation or use of line 37 natural resources.
line 38 (e)  “Persons and families of low or moderate income” has the line 39 same meaning as provided in Section 50093 of the Health and line 40 Safety Code.
98 AB 480 — 6 —

line 1 (f)  (1)  Except as provided in paragraph (2), “exempt surplus line 2 land” means any of the following:
line 3 (A)  Surplus land that is transferred pursuant to Section 25539.4 line 4 or 37364.
line 5 (B)  Surplus land that is (i) less than 5,000 square feet in area, line 6 (ii) less than the minimum legal residential building lot size for line 7 the jurisdiction in which the parcel is located, or 5,000 square feet line 8 in area, whichever is less, or (iii) has no record access and is less line 9 than 10,000 square feet in area; and is not contiguous to land owned line 10 by a state or local agency that is used for open-space or low- and line 11 moderate-income housing purposes. If the surplus land is not sold line 12 to an owner of contiguous land, it is not considered exempt surplus line 13 land and is subject to this article.
line 14 (C)  Surplus land that a local agency is exchanging for another line 15 property necessary for the agency’s use.
line 16 (D)  Surplus land that a local agency is transferring to another line 17 local, state, or federal agency for the agency’s use, or to a federally line 18 recognized California Indian tribe.
line 19 (E)  Surplus land that is a former street, right-of-way, right of line 20 way, or easement, and is conveyed to an owner of an adjacent line 21 property.
line 22 (F)  Surplus land that is put out to open, competitive bid by a line 23 local agency, provided all entities identified in subdivision (a) of line 24 Section 54222 will be invited to participate in the competitive bid line 25 process, for either of the following purposes:
line 26 (i)  A housing development, that may have ancillary commercial line 27 ground floor uses, that restricts 100 percent of the residential units line 28 to persons and families of low or moderate income, with at least line 29 75 percent of the residential units restricted to lower income line 30 households, as defined in Section 50079.5 of the Health and Safety line 31 Code, with an affordable sales price or an affordable rent, as line 32 defined in Sections 50052.5 or 50053 of the Health and Safety line 33 Code, for a minimum of 55 years for rental housing and 45 years line 34 for ownership housing, and in no event shall the maximum line 35 affordable sales price or rent level be higher than 20 percent below line 36 the median market rents or sales prices for the neighborhood in line 37 which the site is located.
line 38 (ii)  A mixed-use development that is more than one acre in area, line 39 that includes not less than 300 residential units, and that restricts line 40 at least 25 percent of the residential units to lower income 98 — 7 — AB 480

line 1 households, as defined in Section 50079.5 of the Health and Safety line 2 Code, with an affordable sales price or an affordable rent, as line 3 defined in Sections 50052.5 and 50053 of the Health and Safety line 4 Code, for a minimum of 55 years for rental housing and 45 years line 5 for ownership housing.
line 6 (G)  Surplus land that is subject to valid legal restrictions that line 7 are not imposed by the local agency and that would make housing line 8 prohibited, unless there is a feasible method to satisfactorily line 9 mitigate or avoid the prohibition on the site. The legal restriction line 10 shall be documented and verified in writing by the relevant line 11 agencies that have authority relating to the restrictions.An existing line 12 nonresidential land use designation on the surplus land is not a line 13 legal restriction that would make housing prohibited for purposes line 14 of this subparagraph. Nothing in this article limits a local line 15 jurisdiction’s authority or discretion to approve land use, zoning, line 16 or entitlement decisions in connection with the surplus land. line 17 (H)  Surplus land that was granted by the state in trust to a local line 18 agency or that was acquired by the local agency for trust purposes line 19 by purchase or exchange, and for which disposal of the land is line 20 authorized or required subject to conditions established by statute. line 21 (I)  Land that is subject to Sections 17388, 17515, 17536, 81192, line 22 81397, 81399, 81420, and 81422 of the Education Code and Part line 23 14 (commencing with Section 53570) of Division 31 of the Health line 24 and Safety Code, unless compliance with this article is expressly line 25 required.
line 26 (J)  Surplus land that is a former military base that was conveyed line 27 by the federal government to a local agency, and is subject to line 28 Article 8 (commencing with Section 33492.125) of Chapter 4.5 line 29 of Part 1 of Division 24 of the Health and Safety Code, provided line 30 that all of the following conditions are met:
line 31 (i)   The former military base has an aggregate area greater than line 32 five acres, is expected to include a mix of residential and line 33 nonresidential uses, and is expected to include no fewer than 1,400 line 34 residential units upon completion of development or redevelopment line 35 of the former military base.
line 36 (ii)  The affordability requirements for residential units shall be line 37 governed by a settlement agreement entered into prior to September line 38 1, 2020. Furthermore, at least 25 percent of the initial 1,400 line 39 residential units developed shall be restricted to lower income line 40 households, as defined in Section 50079.5 of the Health and Safety 98 AB 480 — 8 —

line 1 Code, with an affordable sales price or an affordable rent, as line 2 defined in Sections 50052.5 and 50053 of the Health and Safety line 3 Code, for a minimum of 55 years for rental housing and 45 years line 4 for ownership housing.
line 5 (iii)  Before disposition of the surplus land, the agency adopts line 6 written findings that the land is exempt surplus land pursuant to line 7 this subparagraph.
line 8 (iv)  Before disposition of the surplus land, the recipient has line 9 negotiated a project labor agreement consistent with the local line 10 agency’s project stabilization agreement resolution, as adopted on line 11 February 2, 2021, and any succeeding ordinance, resolution, or line 12 policy, regardless of the length of the agreement between the local line 13 agency and the recipient.
line 14 (v)  The agency includes in the annual report required by line 15 paragraph (2) of subdivision (a) of Section 65400 the status of line 16 development of residential units on the former military base, line 17 including the total number of residential units that have been line 18 permitted and what percentage of those residential units are line 19 restricted for persons and families of low or moderate income, as line 20 defined in Section 50093 of the Health and Safety Code, or lower line 21 income households, as defined in Section 50079.5 of the Health line 22 and Safety Code.
line 23 A violation of this subparagraph is subject to the penalties line 24 described in Section 54230.5. Those penalties are in addition to line 25 any remedy a court may order for violation of this subparagraph line 26 or the settlement agreement.
line 27 (K)  Real property that is used by a district for agency’s use line 28 expressly authorized in subdivision (c).
line 29 (L)  Land that has been transferred before June 30, 2019, by the line 30 state to a local agency pursuant to Section 32667 of the Streets line 31 and Highways Code and has a minimum planned residential density line 32 of at least 100 dwelling units per acre, and includes 100 or more line 33 residential units that are restricted to persons and families of low line 34 or moderate income, as defined in Section 50093 of the Health line 35 and Safety Code, with an affordable sales price or an affordable line 36 rent, as defined in Sections 50052.5 and 50053 of the Health and line 37 Safety Code, for a minimum of 55 years for rental housing and 45 line 38 years for ownership housing. For purposes of this paragraph, not line 39 more than 20 percent of the affordable units may be restricted to line 40 persons and families of moderate income and at least 80 percent 98 — 9 — AB 480

line 1 of the affordable units must be restricted to persons and families line 2 of lower income households as defined in Section 50079.5 of the line 3 Health and Safety Code.
line 4 (M)  Land that is owned by a California public-use airport on line 5 which residential use is prohibited pursuant to Federal Aviation line 6 Administration Order 5190.6B, Airport Compliance Program, line 7 Chapter 20 — Compatible Land Use and Airspace Protection. line 8 (2)  Notwithstanding paragraph (1), a written notice of the line 9 availability of surplus land for open-space purposes shall be sent line 10 to the entities described in subdivision (b) of Section 54222 before line 11 disposing of the surplus land, provided the land does not meet the line 12 criteria in subparagraph (H) of paragraph (1), if the land is any of line 13 the following:
line 14 (A)  Within a coastal zone.
line 15 (B)  Adjacent to a historical unit of the State Parks System. line 16 (C)  Listed on, or determined by the State Office of Historic line 17 Preservation to be eligible for, the National Register of Historic line 18 Places.
line 19 (D)  Within the Lake Tahoe region as defined in Section 66905.5. line 20 SEC. 2. Section 54221.5 is added to the Government Code, to line 21 read:
line 22 54221.5. (a)  Before taking any action to dispose of land, a line 23 local agency shall declare that the land is either “surplus land” line 24 or “exempt surplus land” as specified in this section. The line 25 declaration shall be supported by written findings before the local line 26 agency may dispose of the land in a manner that is consistent with line 27 this section and the local agency’s policies.
line 28 (b)  Except as provided in subdivision (c), a local agency shall line 29 take formal action at a regular public meeting to declare that land line 30 is either “surplus land” or “exempt surplus land.” line 31 (c)  Notwithstanding subdivision (b), a local agency may declare line 32 administratively that land is “exempt surplus land” pursuant to line 33 subparagraphs (A), (B), (E), (H), or (I) of paragraph (1) of line 34 subdivision (f) of Section 54221 if the declaration and findings line 35 are published and available for public comment, including notice line 36 to the entities identified in subdivision (a) of section 54222, at line 37 least 30 days before the declaration takes effect. line 38 (d)  Notwithstanding Section 54222.3, 30 days before disposing line 39 of land declared “exempt surplus land,” a local agency shall line 40 provide the Department of Housing and Community Development 98 AB 480 — 10 —

line 1 a written notification of its declaration and findings in a form and line 2 manner prescribed by the department.
line 3 (e)  A local agency may, on an annual basis, declare multiple line 4 parcels as “surplus land” or “exempt surplus land.” line 5 SEC. 2.
line 6 SEC. 3. Section 54222 of the Government Code is amended line 7 to read:
line 8 54222. Except as provided in Division 23 (commencing with line 9 Section 33000) of the Public Resources Code, any local agency line 10 disposing of surplus land land, declared pursuant to subdivision line 11 (b) of Section 54221.5, shall send, before disposing of that property line 12 or participating in negotiations to dispose of that property with a line 13 prospective transferee, a written notice of availability of the line 14 property to all of the following:
line 15 (a)  (1)  A written notice of availability for developing low- and line 16 moderate-income housing housing, in a form prescribed by the line 17 Department of Housing and Community Development, shall be line 18 sent to any local public entity, as defined in Section 50079 of the line 19 Health and Safety Code, that has jurisdiction where the surplus line 20 land is located. Housing sponsors, as defined by Section 50074 of line 21 the Health and Safety Code, that have notified the Department of line 22 Housing and Community Development of their interest in surplus line 23 land shall be sent a notice of availability for the purpose of line 24 developing low- and moderate-income housing. All notices shall line 25 be sent by electronic mail, or by certified mail, and shall include line 26 the location and a description of the property. line 27 (2)  The Department of Housing and Community Development line 28 shall maintain on its internet website an up-to-date listing of of, line 29 and a link to, all notices of availability throughout the state and a line 30 listing of all entities, including housing sponsors, that have notified line 31 the department of their interest in surplus land for the purpose of line 32 developing low- and moderate-income housing.
line 33 (b)  A written notice of availability for open-space purposes shall line 34 be sent:
line 35 (1)  To any park or recreation department of any city within line 36 which the surplus land is located.
line 37 (2)  To any park or recreation department of the county within line 38 which the surplus land is located.
line 39 (3)  To any regional park authority having jurisdiction within line 40 the area in which the surplus land is located.
98 — 11 — AB 480

line 1 (4)  To the State Resources Agency or any agency that may line 2 succeed to its powers.
line 3 (c)  A written notice of availability of land suitable for school line 4 facilities construction or use by a school district for open-space line 5 purposes shall be sent to any school district that has jurisdiction line 6 where the surplus land is located.
line 7 (d)  A written notice of availability for developing property line 8 located within an infill opportunity zone designated pursuant to line 9 Section 65088.4 or within an area covered by a transit village plan line 10 adopted pursuant to the Transit Village Development Planning line 11 Act of 1994 (Article 8.5 (commencing with Section 65460) of line 12 Chapter 3 of Division 1 of Title 7) shall be sent to any county, line 13 city, city and county, successor agency to a former redevelopment line 14 agency, public transportation agency, or housing authority within line 15 whose jurisdiction the surplus land is located. line 16 (e)  The entity desiring to purchase or lease the surplus land for line 17 any of the purposes authorized by this section shall notify in writing line 18 the disposing agency of its interest in purchasing or leasing the line 19 land within 60 days after the agency’s notice of availability is sent line 20 via certified mail or provided via electronic mail. line 21 (f)  For the purposes of this section, “participating in line 22 negotiations” does not include the commissioning of appraisals, line 23 due diligence prior to disposition, discussions with brokers or real line 24 estate agents not representing a potential buyer, or other studies line 25 to determine value or best use of land, issuance of a request for line 26 qualifications, development of marketing materials, or discussions line 27 conducted exclusively among local agency employees and elected line 28 officials.
line 29 SEC. 3.
line 30 SEC. 4. Section 54222.5 of the Government Code is amended line 31 to read:
line 32 54222.5. An entity proposing to use the surplus land for line 33 developing low- and moderate-income housing shall agree to make line 34 available not less than 25 percent of the total number of units line 35 developed on the parcels at affordable housing cost, as defined in line 36 Section 50052.5 of the Health and Safety Code, or affordable rent, line 37 as defined in Section 50053 of the Health and Safety Code, to line 38 lower income households, as defined in Section 50079.5 of the line 39 Health and Safety Code. Rental units shall remain affordable to, line 40 and occupied by, lower income households for a period of at least 98 AB 480 — 12 —

line 1 55 years. The initial occupants of all ownership units shall be lower line 2 income households, and the units shall be subject to an equity line 3 sharing agreement consistent with paragraph (2) of subdivision line 4 (c) of Section 65915. These requirements shall be contained in a line 5 covenant or restriction recorded against the surplus land at the time line 6 of sale, that shall run with the land and shall be enforceable, against line 7 any owner who violates a covenant or restriction and each line 8 successor in interest who continues the violation, by any of the line 9 following:
line 10 (a)  The local agency that disposed of the surplus land. line 11 (b)  A resident of a unit subject to this section. line 12 (c)  A residents’ association with members who reside in units line 13 subject to this section.
line 14 (d)  A former resident of a unit subject to this section who last line 15 resided in that unit.
line 16 (e)  An applicant seeking to enforce the covenants or restrictions line 17 for a particular unit that is subject to this section, if the applicant line 18 conforms to all of the following:
line 19 (1)  Is of low or moderate income, as defined in pursuant to line 20 Section 50093 of the Health and Safety Code.
line 21 (2)  Is able and willing to occupy that particular unit. line 22 (3)  Was denied occupancy of that particular unit due to an line 23 alleged breach of a covenant or restriction implementing this line 24 section.
line 25 (f)  A person on an affordable housing waiting list who is of low line 26 or moderate income, as defined in pursuant to Section 50093 of line 27 the Health and Safety Code, and who is able and willing to occupy line 28 a unit subject to this section.
line 29 SEC. 4.
line 30 SEC. 5. Section 54223 of the Government Code is amended line 31 to read:
line 32 54223. (a)  After the disposing agency has received a notice line 33 of interest from the entity desiring to purchase or lease the surplus line 34 land on terms that comply with this article, the disposing agency line 35 and the entity shall enter into good faith negotiations to determine line 36 a mutually satisfactory sales price and terms or lease terms. If the line 37 price or terms cannot be agreed upon after a good faith negotiation line 38 period of not less than 90 days, the local agency may dispose of line 39 the surplus land without further regard to this article, except that line 40 Section 54233 shall apply.
98 — 13 — AB 480

line 1 (b)  Residential use shall be deemed an acceptable use for the line 2 surplus land for the purposes of good faith negotiations with a line 3 local agency conducted pursuant to this article. Nothing in this line 4 subdivision shall restrict a local jurisdiction’s authority or line 5 discretion to approve land use, zoning, or entitlement decisions in line 6 connection with the surplus land. Except as provided in subdivision line 7 (c), terms agreed to pursuant to the negotiations shall not do any line 8 of the following:
line 9 (1)  Disallow residential use of the site as a condition of the line 10 disposal.
line 11 (2)  Reduce the allowable number of residential units or the line 12 maximum lot coverage below what may be allowed by zoning or line 13 general plan requirements.
line 14 (3)  Require as a condition of disposal, any design standards or line 15 architectural requirements that would have a substantial adverse line 16 effect on the viability or affordability of a housing development line 17 for very low, low-, or moderate-income households, other than the line 18 minimum standards required by general plan, zoning, and line 19 subdivision standards and criteria.
line 20 (c)  Terms agreed to pursuant to the negotiations required by line 21 subdivision (a) may include limitations on residential use or density line 22 if, without the limitations, the residential use or density would line 23 have a specific, adverse impact, supported by written findings, line 24 upon the public health or safety or upon the operation or facilities line 25 of a local agency, and there is no feasible method to satisfactorily line 26 mitigate the impact.
line 27 SEC. 5.
line 28 SEC. 6. Section 54224 of the Government Code is amended line 29 to read:
line 30 54224. Nothing in this article shall preclude a local agency line 31 that purchases surplus land from a disposing agency pursuant to line 32 this article from reconveying the surplus land to a nonprofit or line 33 for-profit housing developer for development of low- and line 34 moderate-income housing as authorized under other provisions of line 35 law.
line 36 SEC. 6.
line 37 SEC. 7. Section 54225 of the Government Code is amended line 38 to read:
line 39 54225. Any local agency disposing of surplus land to an entity line 40 described in Section 54222 that intends to use the land for park or 98 AB 480 — 14 —

line 1 recreation purposes, for open-space purposes, for school purposes, line 2 or for low- and moderate-income housing purposes may provide line 3 for a payment period of up to 20 years in any contract of sale or line 4 sale by trust deed for the land. The payment period for surplus line 5 land disposed of for housing for persons and families of low and line 6 moderate income may exceed 20 years, but the payment period line 7 shall not exceed the term that the land is required to be used for line 8 low- or moderate-income housing.
line 9 SEC. 7.
line 10 SEC. 8. Section 54227 of the Government Code is amended line 11 to read:
line 12 54227. (a)  In the event that any local agency disposing of line 13 surplus land receives a notice of interest to purchase or lease that line 14 land from more than one of the entities to which notice of line 15 availability was given pursuant to this article, the local agency line 16 shall give first priority to the entity or entities that agree to use the line 17 site for housing that meets the requirements of Section 54222.5. line 18 If the local agency receives offers from more than one entity that line 19 agrees to meet the requirements of Section 54222.5, then the local line 20 agency shall give priority to the entity that proposes to provide the line 21 greatest number of units that meet the requirements of Section line 22 54222.5. In the event that more than one entity proposes the same line 23 number of units that meet the requirements of Section 54222.5, line 24 priority shall be given to the entity that proposes the deepest line 25 average level of affordability for the affordable units. A local line 26 agency may negotiate concurrently with all entities that provide line 27 notice of interest for the purpose of developing low- and line 28 moderate-income housing that meets the requirements of Section line 29 54222.5.
line 30 (b)  Notwithstanding subdivision (a), first priority shall be given line 31 to an entity that agrees to use the site for park or recreational line 32 purposes if the land being offered is already being used and will line 33 continue to be used for park or recreational purposes, or if the land line 34 is designated for park and recreational use in the local general plan line 35 and will be developed for that purpose.
line 36 SEC. 8.
line 37 SEC. 9. Section 54230.5 of the Government Code is amended line 38 to read:
line 39 54230.5. (a)  (1)  A local agency that disposes of surplus land line 40 in violation of this article after receiving a notification from the 98 — 15 — AB 480

line 1 Department of Housing and Community Development pursuant line 2 to subdivision (b) that the local agency is in violation of this article line 3 shall be liable for a penalty of 30 percent of the greater of the final line 4 sale price of the surplus land price, or of the fair market value of line 5 the surplus land at the time of disposition, as determined by an line 6 independent appraisal, of the surplus land sold in violation of this line 7 article for a first violation and 50 percent of the greater of the two line 8 sums, for any subsequent violation. An entity identified in Section line 9 54222 or a person who would have been eligible to apply for line 10 residency in any affordable housing developed or a housing line 11 organization as defined in Section 65589.5, or any beneficially line 12 interested person or entity may bring an action to enforce this line 13 section. A local agency shall have 60 days to cure or correct an line 14 alleged violation before an action may be brought to enforce this line 15 section, unless the local agency disposes of the surplus land before line 16 curing or correcting the alleged violation, or the department deems line 17 the alleged violation not to be a violation in less than 60 days. line 18 (2)  A penalty assessed pursuant to this subdivision shall, except line 19 as otherwise provided, be deposited into a local housing trust fund. line 20 The local agency may elect to instead deposit the penalty moneys line 21 into the Building Homes and Jobs Trust Fund or the Housing line 22 Rehabilitation Loan Fund. Penalties shall not be paid out of funds line 23 already dedicated to affordable housing, including, but not limited line 24 to, Low and Moderate Income Housing Asset Funds, funds line 25 dedicated to housing for very low, low-, and moderate-income line 26 households, and federal HOME Investment Partnerships Program line 27 and Community Development Block Grant Program funds. The line 28 local agency shall commit and expend the penalty moneys line 29 deposited into the local housing trust fund within five years of line 30 deposit for the sole purpose of financing newly constructed housing line 31 units that are affordable to extremely low, very low, or low-income line 32 households.
line 33 (3)  Five years after deposit of the penalty moneys into the local line 34 housing trust fund, if the funds have not been expended, the funds line 35 shall revert to the state and be deposited in the Building Homes line 36 and Jobs Trust Fund or the Housing Rehabilitation Loan Fund for line 37 the sole purpose of financing newly constructed housing units line 38 located in the same jurisdiction as the surplus land and that are line 39 affordable to extremely low, very low, or low-income households. line 40 Expenditure of any penalty moneys deposited into the Building 98 AB 480 — 16 —

line 1 Homes and Jobs Trust Fund or the Housing Rehabilitation Loan line 2 Fund pursuant to this subdivision shall be subject to appropriation line 3 by the Legislature.
line 4 (b)  (1)  Prior to Before agreeing to terms for the disposition of line 5 surplus land, a local agency shall provide to the Department of line 6 Housing and Community Development a description of the notices line 7 of availability sent, and negotiations conducted with any line 8 responding entities, in regard to the disposal of the parcel of surplus line 9 land and a copy of any restrictions to be recorded against the line 10 property pursuant to Section 54233 54222.5, 54233, or 54233.5, line 11 whichever is applicable, in a form prescribed by the Department line 12 of Housing and Community Development. A local agency may line 13 submit this information after it has sent notices of availability line 14 required by Section 54222 and concluded negotiations with any line 15 responding agencies. A local agency shall not be liable for the line 16 penalty imposed by subdivision (a) if the Department of Housing line 17 and Community Development does not notify the agency that the line 18 agency is in violation of this article within 30 days of receiving line 19 the description.
line 20 (2)  The Department of Housing and Community Development line 21 shall do all of the following:
line 22 (A)  Make available educational resources and materials that line 23 inform each agency of its obligations under this article and that line 24 provide guidance on how to comply with its provisions. line 25 (B)  Review information submitted pursuant to paragraph (1). line 26 (C)  Submit written findings to the local agency within 30 days line 27 of receipt of the description required by paragraph (1) from the line 28 local agency if the proposed disposal of the land will violate this line 29 article.
line 30 (D)  Review, adopt, amend, or repeal guidelines to establish line 31 uniform standards to implement this section. The guidelines line 32 adopted pursuant to this subdivision are not subject to Chapter 3.5 line 33 (commencing with Section 11340) of Part 1 of Division 3 of Title line 34 2.
line 35 (E)  Provide the local agency reasonable time, but not less than line 36 60 days, to respond to the findings before taking any other action line 37 authorized by this section.
line 38 (3)  (A)  The local agency shall consider findings made by the line 39 Department of Housing and Community Development pursuant 98 — 17 — AB 480

line 1 to subparagraph (C) of paragraph (2) and shall do one of the line 2 following:
line 3 (i)  Correct any issues identified by the Department of Housing line 4 and Community Development.
line 5 (ii)  Provide written findings explaining the reason its process line 6 for disposing of surplus land complies with this article and line 7 addressing the Department of Housing and Community line 8 Development’s findings.
line 9 (B)  If the local agency does not correct issues identified by the line 10 Department of Housing and Community Development, does not line 11 provide findings explaining the reason its process for disposing of line 12 surplus land complies with this article and addressing the line 13 Department of Housing and Community Development’s findings, line 14 or if the Department of Housing and Community Development line 15 finds that the local agency’s findings are deficient in addressing line 16 the issues identified by the Department of Housing and Community line 17 Development, the Department of Housing and Community line 18 Development shall notify the local agency, and may notify the line 19 Attorney General, that the local agency is in violation of this article. line 20 (c)  The Department of Housing and Community Development line 21 shall implement the changes in this section made by the act adding line 22 this subdivision commencing on January 1, 2021. line 23 (d)  Notwithstanding subdivision (c), this section shall not be line 24 construed to limit any other remedies authorized under law to line 25 enforce this article including public records act requests pursuant line 26 to Division 10 (commencing with Section 7920.000) of Title 1. line 27 SEC. 10. If the Commission on State Mandates determines that line 28 this act contains costs mandated by the state, reimbursement to line 29 local agencies and school districts for those costs shall be made line 30 pursuant to Part 7 (commencing with Section 17500) of Division line 31 4 of Title 2 of the Government Code.

O
98 AB 480 — 18 —

ACTION ALERT
OPPOSE SB 423 (Wiener)
Streamlined housing approvals: multifamily housing developments:

SB 35 (Chapter 366, Statutes of 2017) expansion.

Background: In 2017, the Legislature passed, and the Governor signed SB 35. This law makes the approval of multifamily developments, many of which meet inadequate criteria, “ministerial” actions. As a result, the approval of these developments pre-empts local discretionary land use authority, bypasses the California Environmental Quality Act (CEQA), and ignores public input.

What does SB 423 specifically do?
• Removes the 2026 sunset and makes SB 35 statutes permanent. • Applies SB 35 provision to cities that have not been found in substantial compliance with housing element law by the department.
• Applies SB 35 provisions to developments in the Coastal Zone.

SB 423 would greatly expand SB 35 (Chapter 366, Statutes of 2017) provisions and eliminate the Jan. 1, 2026 sunset date, permanently requiring cities to ministerially approve certain housing projects without public input or environmental review.

SB 423 will be heard in the Senate Committee on Housing on March 21. Voice your opposition TODAY by submitting a letter to the Senate Committee on Housing and your legislator. If your Senator is on the committee, it is important for you to submit a letter and call them to express your opposition.

Members of the Senate Committee on Housing:

Senator Scott Wiener (Chair) — (916) 651-4011
Senator Rosilicie Ochoa Bogh (Vice Chair) — (916) 651-4023 Senator Catherine Blakespear — (916) 651-4038
Senator Anna Caballero — (916) 651-4014
Senator Dave Cortese — (916) 651-4015
Senator Mike McGuire — (916) 651-4002
Senator Steve Padilla — (916) 651-4018
Senator Kelly Seyarto — (916) 651-4032
Senator Nancy Skinner — (916) 651-4009
Senator Thomas Umberg — (916) 651-4034
Senator Aisha Wahab — (916) 651-4410
ACTION

• Allows the state to approve housing developments on property they own or lease without being required to follow local zoning and development standards. • Prohibits a city from enforcing its inclusionary housing ordinance if the income limits are higher than those in SB 35.

Talking points:
• City officials intimately understand the housing crisis as it plays out in their communities every day. Local leaders are working to find creative solutions so homes of all income levels can be built.
• Cities are finalizing local housing plans that will identify sites for more than 2.5 million new homes statewide, all while navigating the state’s annual barrage of overreaching housing bills that have thus far demonstrated limited success. • SB 423 is the latest overreaching bill, and would force cities to approve certain housing projects without regard to the needs of the community, opportunities for environmental review, or public input.
• Instead of continuing to pursue top-down, one-size-fits-all legislation, lawmakers should partner with local officials.
• That’s why YOUR CITY NAME is calling on the Governor and lawmakers to include a $3 billion annual investment in the state budget to help cities prevent and reduce homelessness and spur housing development.
• Targeted, ongoing funding is the only way cities can find community-based solutions that get our residents off the streets and keep them in their homes. • California will never produce the number of homes needed with an increasingly state driven, by-right housing approval process.
• Join me and oppose SB 423 (Wiener).

17575 Peak Avenue
Morgan Hill, CA 95037-4128
TEL: (408) 779-7271
FAX: (408) 779-3117
www.morganhill.ca.gov
April 10, 2023
The Honorable Scott Wiener
Chair, Senate Committee on Housing
1021 O Street, Suite 3330
Sacramento, CA 95814
RE: SB 423 (Wiener) Streamlined housing approvals: multifamily housing developments: SB 35 (Chapter 366, Statutes of 2017) Expansion. - Notice of Opposition Dear Senator Wiener:

On behalf of the City of Morgan Hill, we respectfully write with a deep appreciation and shared concern for the statewide housing crisis, and the unprecedented need for affordable housing. However, the City of Morgan Hill writes to express our opposition to SB 423, which would greatly expand SB 35 (Chapter 366, Statutes of 2017) provisions and eliminate the January 1, 2026, sunset date. We recognize it may be a solution that is appealing to some cities that are truly "transit rich" and "job rich," unfortunately Morgan Hill is neither.

All cities are not created equal in terms of resources that are desperately needed to ensure sustainable communities.

The City of Morgan Hill intimately understands this crisis as it plays out in our community every day.

Morgan Hill has created more affordable units per capita than any other City in northern California and is committed to continuing this important work. We continue to not shy away from striving to achieve our production goals. Currently, there are more than 2,900 units in the development pipeline and 550 of them are designated as affordable. For the current Regional Housing Needs Allocation (RHNA) cycle (2015-2023), Morgan Hill has exceeded our total RHNA goal of 928 by producing 3,142 homes since 2014, thus satisfying our Housing goal by 338%. Morgan Hill has worked tirelessly with a very small team to exceed each income category of the RHNA allocations, including very low income for which the City is proud to have produced 311 units or 113% of the 5
th cycle RHNA allocation.

SB 423 is the latest bill that would double-down on the recent trend of the state overriding its own mandated local housing plans by forcing cities to approve certain housing projects without opportunities for environmental review, impacts, or public input.

Finally, it should be noted that Morgan Hill is not only leading in affordable housing creation, but also is growing at a fast, steady pace of 2% per year. Morgan Hill is often listed as one of the fastest growing cities in Santa Clara County. Morgan Hill is building its fair share of housing and has exceeded our RHNA numbers both in the current 5th cycle and is on track to do so in the next 6th RHNA cycle. While the desire for housing production resonates strongly with us, we have the following concerns:
• Public engagement often leads to better projects. Not having such outlets will increase public distrust in government and could result in additional ballot measures limiting housing development. • One-size-fits-all legislation is challenging and infeasible for smaller and less resourced jurisdictions like Morgan Hill.
• The lack of public transportation in Morgan Hill and the limited parking available leads to developments that are not conducive to the actual needs of the residents living in them.

We encourage lawmakers to partner with local officials. California Cities is calling on the Governor and lawmakers to include a $3 billion annual investment in the state budget to help cities prevent and reduce homelessness and spur housing development. Targeted, ongoing funding at an appropriate scale to address the magnitude of the need is needed, a sustainable state investment that matches the scale of this long-term crisis.

For these reasons, the City of Morgan Hill respectfully opposes your measure.

Sincerely,
Mark Turner
Mayor
Cc: Seth Miller, Regional Public Affairs Manager, League of California Cities, [email protected] Meg Desmond, League of California Cities, [email protected] Senator John Laird
Assemblymember Gail Pellerin

AMENDED IN SENATE MARCH 28, 2023
SENATE BILL No. 423
Introduced by Senator Wiener
(Principal coauthor: Assembly Member Wicks)
(Coauthor: Senator Hurtado)
(Coauthor: Assembly Member Grayson)
February 13, 2023
An act to amend Section 65913.4 of the Government Code, relating to land use.
legislative counsel’s digest
SB 423, as amended, Wiener. Land use: streamlined housing approvals: multifamily housing developments.

Existing law, the Planning and Zoning Law, authorizes a development proponent to submit an application for a multifamily housing development that is subject to a streamlined, ministerial approval process, as provided, and not subject to a conditional use permit, if the development satisfies specified objective planning standards, including, among others, that the development proponent has committed to record, prior to the issuance of the first building permit, a land use restriction or covenant providing that any lower or moderate-income housing units required, as specified, remain available at affordable housing costs, as defined, or rent to persons and families of lower or moderate-income for no less than specified periods of time. Existing law repeals these provisions on January 1, 2026.

This bill would authorize the Department of General Services to act in the place of a locality or local government, at the discretion of that department, for purposes of the ministerial, streamlined review for development on property owned by or leased to the state. The bill would

98

delete the January 1, 2026, repeal date, thereby making these provisions operative indefinitely.

This bill would modify the above-described objective planning standards, including by deleting the standard that prohibits a multifamily housing development from being subject to the streamlined, ministerial approval process if the development is located in a coastal zone, and by providing an alternative definition for “affordable housing costs” for a development that dedicates 100% of units, exclusive of a manager’s unit or units, to lower income households. The bill would, among other modifications, delete the objective planning standards requiring development proponents to pay at least the general prevailing rate of per diem wages and utilize a skilled and trained workforce and would instead require a development proponent to certify to the local government that certain wage and labor standards will be met, including a requirement that all construction workers be paid at least the general prevailing rate of wages, as specified. The bill would require the Labor Commissioner to enforce the obligation to pay prevailing wages. By expanding the crime of perjury, the bill would impose a state-mandated local program. The bill would specify that the requirements to pay prevailing wages, use a workforce participating in an apprenticeship, or provide health care expenditures do not apply to a project that consists of 10 or fewer units and is not otherwise a public work.

This bill would define “objective planning standards” to exclude specified standards, including local building codes, fire codes, other codes requiring detailed technical specifications, and standards that are not reasonably ascertainable by the local government within specified time limits, as described.

Existing law requires a local government to approve a development if the local government determines the development is consistent with the objective planning standards. Existing law requires, if the local government determines a submitted development is in conflict with any of the objective planning standards, the local government to provide the development proponent written documentation of the standards the development conflicts with and an explanation for the conflict within certain timelines depending on the size of the development. Existing law, the Housing Accountability Act, prohibits a local agency from disapproving a housing development project, as described, unless it makes specified written findings.

This bill would instead require approval if a local government’s planning director or any equivalent local government staff, including 98 SB 423 — 2 —

all relevant planning and permitting departments, equivalent position determines the development is consistent with the objective planning standards. The bill would make conforming changes. The bill would require all departments of the local government that are required to issue an approval of the development prior to the granting of an entitlement to also comply with the above-described streamlined approval requirements within specified time periods. The bill would prohibit a local government from requiring a development proponent to provide consultant studies, as described, or other studies requiring, prior to approving a development that meets the requirements of the above-described streamlining provisions, compliance with any standards necessary to receive a postentitlement permit or studies, information, or other materials that are unnecessary to ascertain consistency do not pertain directly to determining whether the development is consistent with the objective planning standards. standards applicable to the development.

The bill would, for purposes of these provisions, establish that the total number of units in a development includes (1) all projects developed on a site, regardless of when those developments occur, and (2) all projects developed on sites adjacent to a site developed pursuant to these provisions if, after January 1, 2023, the adjacent site had been subdivided from the site developed pursuant to these provisions.

Existing law authorizes the local government’s planning commission or any equivalent board or commission responsible for review and approval of development projects, or as otherwise specified, to conduct any design review or public oversight of the development.

This bill would remove the above-described authorization to conduct public oversight of the development and would only authorize design review to be conducted by the local government’s planning commission or any equivalent board or commission responsible for design review.

By imposing additional duties on local officials, the bill would impose a state-mandated local program.

The bill would include findings that changes proposed by this bill address a matter of statewide concern rather than a municipal affair and, therefore, apply to all cities, including charter cities.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state.

Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for specified reasons.
98 — 3 — SB 423

Vote: majority. Appropriation: no. Fiscal committee: yes.

State-mandated local program: yes.

The people of the State of California do enact as follows:
line 1 SECTION 1. The Legislature finds and declares that it has line 2 provided reforms and incentives to facilitate and expedite the line 3 construction of affordable housing. Those reforms and incentives line 4 can be found in the following provisions:
line 5 (a)  Housing element law (Article 10.6 (commencing with line 6 Section 65580) of Chapter 3 of Division 1 of Title 7 of the line 7 Government Code).
line 8 (b)  Extension of statute of limitations in actions challenging the line 9 housing element and brought in support of affordable housing line 10 (subdivision (d) of Section 65009 of the Government Code). line 11 (c)  Restrictions on disapproval of housing developments line 12 (Section 65589.5 of the Government Code).
line 13 (d)  Priority for affordable housing in the allocation of water and line 14 sewer hookups (Section 65589.7 of the Government Code). line 15 (e)  Least cost zoning law (Section 65913.1 of the Government line 16 Code).
line 17 (f)  Density Bonus Law (Section 65915 of the Government line 18 Code).
line 19 (g)  Accessory dwelling units (Sections 65852.150 and 65852.2 line 20 of the Government Code).
line 21 (h)  By-right housing, in which certain multifamily housing is line 22 designated a permitted use (Section 65589.4 of the Government line 23 Code).
line 24 (i)  No-net-loss-in zoning density law limiting downzonings and line 25 density reductions (Section 65863 of the Government Code). line 26 (j)  Requiring persons who sue to halt affordable housing to pay line 27 attorney’s fees (Section 65914 of the Government Code) or post line 28 a bond (Section 529.2 of the Code of Civil Procedure). line 29 (k)  Reduced time for action on affordable housing applications line 30 under the approval of development permits process (Article 5 line 31 (commencing with Section 65950) of Chapter 4.5 of Division 1 line 32 of Title 7 of the Government Code).
line 33 (l)  Limiting moratoriums on multifamily housing (Section 65858 line 34 of the Government Code).
98 SB 423 — 4 —

line 1 (m)  Prohibiting discrimination against affordable housing line 2 (Section 65008 of the Government Code).
line 3 (n)  California Fair Employment and Housing Act (Part 2.8 line 4 (commencing with Section 12900) of Division 3 of Title 2 of the line 5 Government Code).
line 6 (o)  Community Redevelopment Law (Part 1 (commencing with line 7 Section 33000) of Division 24 of the Health and Safety Code, and line 8 in particular Sections 33334.2 and 33413 of the Health and Safety line 9 Code).
line 10 (p)  Streamlining housing approvals during a housing shortage line 11 (Section 65913.4 of the Government Code).
line 12 (q)  Housing sustainability districts (Chapter 11 (commencing line 13 with Section 66200) of Division 1 of Title 7 of the Government line 14 Code).
line 15 (r)  Streamlining agricultural employee housing development line 16 approvals (Section 17021.8 of the Health and Safety Code). line 17 (s)  The Housing Crisis Act of 2019 (Senate Bill 330 (Chapter line 18 654 of the Statutes of 2019)).
line 19 (t)  Allowing four units to be built on single-family parcels line 20 statewide (Senate Bill 9 (Chapter 162 of Statutes of 2021)). line 21 (u)  The Middle Class Housing Act of 2022 (Section 65852.24 line 22 of the Government Code).
line 23 (s)
line 24 (v)  Affordable Housing and High Road Jobs Act of 2022 line 25 (Chapter 4.1 (commencing with Section 65912.100) of Division line 26 1 of Title 7 of the Government Code).
line 27 SEC. 2. Section 65913.4 of the Government Code is amended line 28 to read:
line 29 65913.4. (a)  A development proponent may submit an line 30 application for a development that is subject to the streamlined, line 31 ministerial approval process provided by subdivision (c) and is line 32 not subject to a conditional use permit or any other nonlegislative line 33 discretionary approval if the development complies with line 34 subdivision (b) and satisfies all of the following objective planning line 35 standards:
line 36 (1)  The development is a multifamily housing development that line 37 contains two or more residential units.
line 38 (2)  The development and the site on which it is located satisfy line 39 all of the following:
98 — 5 — SB 423

line 1 (A)  It is a legal parcel or parcels located in a city if, and only line 2 if, the city boundaries include some portion of either an urbanized line 3 area or urban cluster, as designated by the United States Census line 4 Bureau, or, for unincorporated areas, a legal parcel or parcels line 5 wholly within the boundaries of an urbanized area or urban cluster, line 6 as designated by the United States Census Bureau. line 7 (B)  At least 75 percent of the perimeter of the site adjoins parcels line 8 that are developed with urban uses. For the purposes of this section, line 9 parcels that are only separated by a street or highway shall be line 10 considered to be adjoined.
line 11 (C)  (i)  A site that meets the requirements of clause (ii) and line 12 satisfies any of the following:
line 13 (I)  The site is zoned for residential use or residential mixed-use line 14 development.
line 15 (II)  The site has a general plan designation that allows residential line 16 use or a mix of residential and nonresidential uses. line 17 (III)  The site is zoned for office or retail commercial use and line 18 meets the requirements of Section 65852.24.
line 19 (ii)  At least two-thirds of the square footage of the development line 20 is designated for residential use. Additional density, floor area, line 21 and units, and any other concession, incentive, or waiver of line 22 development standards granted pursuant to the Density Bonus Law line 23 in Section 65915 shall be included in the square footage line 24 calculation. The square footage of the development shall not line 25 include underground space, such as basements or underground line 26 parking garages.
line 27 (3)  (A)  The development proponent has committed to record, line 28 prior to the issuance of the first building permit, a land use line 29 restriction or covenant providing that any lower or moderate line 30 income housing units required pursuant to subparagraph (B) of line 31 paragraph (4) shall remain available at affordable housing costs line 32 or rent to persons and families of lower or moderate-income for line 33 no less than the following periods of time:
line 34 (i)  Fifty-five years for units that are rented. line 35 (ii)  Forty-five years for units that are owned. line 36 (B)  The city or county shall require the recording of covenants line 37 or restrictions implementing this paragraph for each parcel or unit line 38 of real property included in the development.
line 39 (4)  The development satisfies clause (i) or (ii) of subparagraph line 40 (A) and satisfies subparagraph (B) below:
98 SB 423 — 6 —

line 1 (A)  (i)  For a development located in a locality that is in its sixth line 2 or earlier housing element cycle, the development is located in line 3 either of the following:
line 4 (I)  In a locality that the department has determined is subject line 5 to this clause on the basis that the number of units that have been line 6 issued building permits, as shown on the most recent production line 7 report received by the department, is less than the locality’s share line 8 of the regional housing needs, by income category, for that line 9 reporting period. A locality shall remain eligible under this line 10 subclause until the department’s determination for the next line 11 reporting period.
line 12 (II)  In a locality that the department has determined is subject line 13 to this clause on the basis that the locality did not adopt a housing line 14 element that has been found in substantial compliance with housing line 15 element law (Article 10.6 (commencing with Section 65580) of line 16 Chapter 3) by the department. A locality shall remain eligible under line 17 this subclause until such time as the locality adopts a housing line 18 element that has been found in substantial compliance with housing line 19 element law (Article 10.6 (commencing with Section 65580) of line 20 Chapter 3) by the department.
line 21 (ii)  For a development located in a locality that is in its seventh line 22 or later housing element cycle, is located in a locality that the line 23 department has determined is subject to this clause on the basis line 24 that the locality did not adopt a housing element that has been line 25 found in substantial compliance with housing element law (Article line 26 10.6 (commencing with Section 65580) of Chapter 3) by the line 27 department by the statutory deadline, or that the number of units line 28 that have been issued building permits, as shown on the most recent line 29 production report received by the department, is less than the line 30 locality’s share of the regional housing needs, by income category, line 31 for that reporting period. A locality shall remain eligible under line 32 this subparagraph until the department’s determination for the next line 33 reporting period.
line 34 (B)  The development is subject to a requirement mandating a line 35 minimum percentage of below market rate housing based on one line 36 of the following:
line 37 (i)  The locality did not adopt a housing element pursuant to line 38 Section 65588 that has been found in substantial compliance with line 39 the housing element law (Article 10.6 (commencing with Section line 40 65580) of Chapter 3) by the department, did not submit its latest 98 — 7 — SB 423

line 1 production report to the department by the time period required line 2 by Section 65400, or that production report submitted to the line 3 department reflects that there were fewer units of above line 4 moderate-income housing issued building permits than were line 5 required for the regional housing needs assessment cycle for that line 6 reporting period. In addition, if the project contains more than 10 line 7 units of housing, the project does either of the following:
line 8 (I)  The project dedicates a minimum of 10 percent of the total line 9 number of units, before calculating any density bonus, to housing line 10 affordable to households making at or below 80 percent of the area line 11 median income. However, if the locality has adopted a local line 12 ordinance that requires that greater than 10 percent of the units be line 13 dedicated to housing affordable to households making below 80 line 14 percent of the area median income, that local ordinance applies. line 15 (II)  (ia)  If the project is located within the San Francisco Bay line 16 area, the project, in lieu of complying with subclause (I), dedicates line 17 20 percent of the total number of units, before calculating any line 18 density bonus, to housing affordable to households making below line 19 120 percent of the area median income with the average income line 20 of the units at or below 100 percent of the area median income. line 21 However, a local ordinance adopted by the locality applies if it line 22 requires greater than 20 percent of the units be dedicated to housing line 23 affordable to households making at or below 120 percent of the line 24 area median income, or requires that any of the units be dedicated line 25 at a level deeper than 120 percent. In order to comply with this line 26 subclause, the rent or sale price charged for units that are dedicated line 27 to housing affordable to households between 80 percent and 120 line 28 percent of the area median income shall not exceed 30 percent of line 29 the gross income of the household.
line 30 (ib)  For purposes of this subclause, “San Francisco Bay area” line 31 means the entire area within the territorial boundaries of the line 32 Counties of Alameda, Contra Costa, Marin, Napa, San Mateo, line 33 Santa Clara, Solano, and Sonoma, and the City and County of San line 34 Francisco.
line 35 (ii)  The locality’s latest production report reflects that there line 36 were fewer units of housing issued building permits affordable to line 37 either very low income or low-income households by income line 38 category than were required for the regional housing needs line 39 assessment cycle for that reporting period, and the project seeking line 40 approval dedicates 50 percent of the total number of units, before 98 SB 423 — 8 —

line 1 calculating any density bonus, to housing affordable to households line 2 making at or below 80 percent of the area median income. line 3 However, if the locality has adopted a local ordinance that requires line 4 that greater than 50 percent of the units be dedicated to housing line 5 affordable to households making at or below 80 percent of the area line 6 median income, that local ordinance applies.
line 7 (iii)  The locality did not submit its latest production report to line 8 the department by the time period required by Section 65400, or line 9 if the production report reflects that there were fewer units of line 10 housing affordable to both income levels described in clauses (i) line 11 and (ii) that were issued building permits than were required for line 12 the regional housing needs assessment cycle for that reporting line 13 period, the project seeking approval may choose between utilizing line 14 clause (i) or (ii).
line 15 (C)  (i)  A development proponent that uses a unit of affordable line 16 housing to satisfy the requirements of subparagraph (B) may also line 17 satisfy any other local or state requirement for affordable housing, line 18 including local ordinances or the Density Bonus Law in Section line 19 65915, provided that the development proponent complies with line 20 the applicable requirements in the state or local law. If a local line 21 requirement for affordable housing requires units that are restricted line 22 to households with incomes higher than the applicable income line 23 limits required in subparagraph (B), then units that meet the line 24 applicable income limits required in subparagraph (B) shall be line 25 deemed to satisfy those local requirements for higher income units. line 26 (ii)  A development proponent that uses a unit of affordable line 27 housing to satisfy any other state or local affordability requirement line 28 may also satisfy the requirements of subparagraph (B), provided line 29 that the development proponent complies with applicable line 30 requirements of subparagraph (B).
line 31 (iii)  A development proponent may satisfy the affordability line 32 requirements of subparagraph (B) with a unit that is restricted to line 33 households with incomes lower than the applicable income limits line 34 required in subparagraph (B).
line 35 (D)  The amendments to this subdivision made by the act adding line 36 this subparagraph do not constitute a change in, but are declaratory line 37 of, existing law.
line 38 (5)  The development, excluding any additional density or any line 39 other concessions, incentives, or waivers of development standards line 40 for which the development is eligible pursuant to the Density Bonus 98 — 9 — SB 423

line 1 Law in Section 65915, is consistent with objective zoning line 2 standards, objective subdivision standards, and objective design line 3 review standards in effect at the time that the development is line 4 submitted to the local government pursuant to this section, or at line 5 the time a notice of intent is submitted pursuant to subdivision (b), line 6 whichever occurs earlier. For purposes of this paragraph, “objective line 7 zoning standards,” “objective subdivision standards,” and line 8 “objective design review standards” mean standards that involve line 9 no personal or subjective judgment by a public official and are line 10 uniformly verifiable by reference to an external and uniform line 11 benchmark or criterion available and knowable by both the line 12 development applicant or proponent and the public official before line 13 submittal. These standards may be embodied in alternative line 14 objective land use specifications adopted by a city or county, and line 15 may include, but are not limited to, housing overlay zones, specific line 16 plans, inclusionary zoning ordinances, and density bonus line 17 ordinances, subject to the following:
line 18 (A)  A development shall be deemed consistent with the objective line 19 zoning standards related to housing density, as applicable, if the line 20 density proposed is compliant with the maximum density allowed line 21 within that land use designation, notwithstanding any specified line 22 maximum unit allocation that may result in fewer units of housing line 23 being permitted.
line 24 (B)  In the event that objective zoning, general plan, subdivision, line 25 or design review standards are mutually inconsistent, a line 26 development shall be deemed consistent with the objective zoning line 27 and subdivision standards pursuant to this subdivision if the line 28 development is consistent with the standards set forth in the general line 29 plan.
line 30 (C)  It is the intent of the Legislature that the objective zoning line 31 standards, objective subdivision standards, and objective design line 32 review standards described in this paragraph be adopted or line 33 amended in compliance with the requirements of Chapter 905 of line 34 the Statutes of 2004.
line 35 (D)  The amendments to this subdivision made by the act adding line 36 this subparagraph do not constitute a change in, but are declaratory line 37 of, existing law.
line 38 (E)  A project that satisfies the requirements of Section 65852.24 line 39 shall be deemed consistent with objective zoning standards, line 40 objective design standards, and objective subdivision standards if 98 SB 423 — 10 —

line 1 the project is consistent with the provisions of subdivision (b) of line 2 Section 65852.24 and if none of the square footage in the project line 3 is designated for hotel, motel, bed and breakfast inn, or other line 4 transient lodging use, except for a residential hotel. For purposes line 5 of this subdivision, “residential hotel” shall have the same meaning line 6 as defined in Section 50519 of the Health and Safety Code. line 7 (6)  The development is not located on a site that is any of the line 8 following:
line 9 (A)  Either prime farmland or farmland of statewide importance, line 10 as defined pursuant to United States Department of Agriculture line 11 land inventory and monitoring criteria, as modified for California, line 12 and designated on the maps prepared by the Farmland Mapping line 13 and Monitoring Program of the Department of Conservation, or line 14 land zoned or designated for agricultural protection or preservation line 15 by a local ballot measure that was approved by the voters of that line 16 jurisdiction.
line 17 (B)  Wetlands, as defined in the United States Fish and Wildlife line 18 Service Manual, Part 660 FW 2 (June 21, 1993), unless the line 19 development within the wetlands has been authorized by a permit line 20 or other approval issued pursuant to federal or other state law. line 21 (C)  Within a very high fire hazard severity zone, as determined line 22 by the Department of Forestry and Fire Protection pursuant to line 23 Section 51178, or within a high or very high fire hazard severity line 24 zone as indicated on maps adopted by the Department of Forestry line 25 and Fire Protection pursuant to Section 4202 of the Public line 26 Resources Code. This subparagraph does not apply to sites line 27 excluded from the specified hazard zones by a local agency, line 28 pursuant to subdivision (b) of Section 51179, or sites that have line 29 adopted fire hazard mitigation measures pursuant to existing line 30 building standards or state fire mitigation measures applicable to line 31 the development.
line 32 (D)  A hazardous waste site that is listed pursuant to Section line 33 65962.5 or a hazardous waste site designated by the Department line 34 of Toxic Substances Control pursuant to Section 25356 of the line 35 Health and Safety Code, unless either of the following apply:
line 36 (i)  The site is an underground storage tank site that received a line 37 uniform closure letter issued pursuant to subdivision (g) of Section line 38 25296.10 of the Health and Safety Code based on closure criteria line 39 established by the State Water Resources Control Board for line 40 residential use or residential mixed uses. This section does not 98 — 11 — SB 423

line 1 alter or change the conditions to remove a site from the list of line 2 hazardous waste sites listed pursuant to Section 65962.5. line 3 (ii)  The State Department of Public Health, State Water line 4 Resources Control Board, Department of Toxic Substances Control, line 5 or a local agency making a determination pursuant to subdivision line 6 (c) of Section 25296.10 of the Health and Safety Code, has line 7 otherwise determined that the site is suitable for residential use or line 8 residential mixed uses.
line 9 (E)  Within a delineated earthquake fault zone as determined by line 10 the State Geologist in any official maps published by the State line 11 Geologist, unless the development complies with applicable seismic line 12 protection building code standards adopted by the California line 13 Building Standards Commission under the California Building line 14 Standards Law (Part 2.5 (commencing with Section 18901) of line 15 Division 13 of the Health and Safety Code), and by any local line 16 building department under Chapter 12.2 (commencing with Section line 17 8875) of Division 1 of Title 2.
line 18 (F)  Within a special flood hazard area subject to inundation by line 19 the 1 percent annual chance flood (100-year flood) as determined line 20 by the Federal Emergency Management Agency in any official line 21 maps published by the Federal Emergency Management Agency. line 22 If a development proponent is able to satisfy all applicable federal line 23 qualifying criteria in order to provide that the site satisfies this line 24 subparagraph and is otherwise eligible for streamlined approval line 25 under this section, a local government shall not deny the application line 26 on the basis that the development proponent did not comply with line 27 any additional permit requirement, standard, or action adopted by line 28 that local government that is applicable to that site. A development line 29 may be located on a site described in this subparagraph if either line 30 of the following are met:
line 31 (i)  The site has been subject to a Letter of Map Revision line 32 prepared by the Federal Emergency Management Agency and line 33 issued to the local jurisdiction.
line 34 (ii)  The site meets Federal Emergency Management Agency line 35 requirements necessary to meet minimum flood plain management line 36 criteria of the National Flood Insurance Program pursuant to Part line 37 59 (commencing with Section 59.1) and Part 60 (commencing line 38 with Section 60.1) of Subchapter B of Chapter I of Title 44 of the line 39 Code of Federal Regulations.
98 SB 423 — 12 —

line 1 (G)  Within a regulatory floodway as determined by the Federal line 2 Emergency Management Agency in any official maps published line 3 by the Federal Emergency Management Agency, unless the line 4 development has received a no-rise certification in accordance line 5 with Section 60.3(d)(3) of Title 44 of the Code of Federal line 6 Regulations. If a development proponent is able to satisfy all line 7 applicable federal qualifying criteria in order to provide that the line 8 site satisfies this subparagraph and is otherwise eligible for line 9 streamlined approval under this section, a local government shall line 10 not deny the application on the basis that the development line 11 proponent did not comply with any additional permit requirement, line 12 standard, or action adopted by that local government that is line 13 applicable to that site.
line 14 (H)  Lands identified for conservation in an adopted natural line 15 community conservation plan pursuant to the Natural Community line 16 Conservation Planning Act (Chapter 10 (commencing with Section line 17 2800) of Division 3 of the Fish and Game Code), habitat line 18 conservation plan pursuant to the federal Endangered Species Act line 19 of 1973 (16 U.S.C. Sec. 1531 et seq.), or other adopted natural line 20 resource protection plan.
line 21 (I)  Habitat for protected species identified as candidate, line 22 sensitive, or species of special status by state or federal agencies, line 23 fully protected species, or species protected by the federal line 24 Endangered Species Act of 1973 (16 U.S.C. Sec. 1531 et seq.), line 25 the California Endangered Species Act (Chapter 1.5 (commencing line 26 with Section 2050) of Division 3 of the Fish and Game Code), or line 27 the Native Plant Protection Act (Chapter 10 (commencing with line 28 Section 1900) of Division 2 of the Fish and Game Code), unless line 29 the development within the habitat has been authorized by a permit line 30 or approval issued pursuant to federal or other state law. line 31 (J)  Lands under conservation easement.
line 32 (7)  The development is not located on a site where any of the line 33 following apply:
line 34 (A)  The development would require the demolition of the line 35 following types of housing:
line 36 (i)  Housing that is subject to a recorded covenant, ordinance, line 37 or law that restricts rents to levels affordable to persons and line 38 families of moderate, low, or very low income.
line 39 (ii)  Housing that is subject to any form of rent or price control line 40 through a public entity’s valid exercise of its police power. 98 — 13 — SB 423

line 1 (iii)  Housing that has been occupied by tenants within the past line 2 10 years.
line 3 (B)  The site was previously used for housing that was occupied line 4 by tenants that was demolished within 10 years before the line 5 development proponent submits an application under this section. line 6 (C)  The development would require the demolition of a historic line 7 structure that was placed on a national, state, or local historic line 8 register.
line 9 (D)  The property contains housing units that are occupied by line 10 tenants, and units at the property are, or were, subsequently offered line 11 for sale to the general public by the subdivider or subsequent owner line 12 of the property.
line 13 (8)  Except as provided in paragraph (9), a proponent of a line 14 development project approved by a local government pursuant to line 15 this section shall require in contracts with construction contractors, line 16 and shall certify to the local government, that the following line 17 standards specified in this paragraph will be met in project line 18 construction, as applicable:
line 19 (A)  A development that is not in its entirety a public work for line 20 purposes of Chapter 1 (commencing with Section 1720) of Part 7 line 21 of Division 2 of the Labor Code and approved by a local line 22 government pursuant to Article 2 (commencing with Section line 23 65912.110) or Article 3 (commencing with Section 65912.120) line 24 shall be subject to all of the following:
line 25 (i)  All construction workers employed in the execution of the line 26 development shall be paid at least the general prevailing rate of line 27 per diem wages for the type of work and geographic area, as line 28 determined by the Director of Industrial Relations pursuant to line 29 Sections 1773 and 1773.9 of the Labor Code, except that line 30 apprentices registered in programs approved by the Chief of the line 31 Division of Apprenticeship Standards may be paid at least the line 32 applicable apprentice prevailing rate.
line 33 (ii)  The development proponent shall ensure that the prevailing line 34 wage requirement is included in all contracts for the performance line 35 of the work for those portions of the development that are not a line 36 public work.
line 37 (iii)  All contractors and subcontractors for those portions of the line 38 development that are not a public work shall comply with both of line 39 the following:
98 SB 423 — 14 —

line 1 (I)  Pay to all construction workers employed in the execution line 2 of the work at least the general prevailing rate of per diem wages, line 3 except that apprentices registered in programs approved by the line 4 Chief of the Division of Apprenticeship Standards may be paid at line 5 least the applicable apprentice prevailing rate. line 6 (II)  Maintain and verify payroll records pursuant to Section line 7 1776 of the Labor Code and make those records available for line 8 inspection and copying as provided in that section. This subclause line 9 does not apply if all contractors and subcontractors performing line 10 work on the development are subject to a project labor agreement line 11 that requires the payment of prevailing wages to all construction line 12 workers employed in the execution of the development and line 13 provides for enforcement of that obligation through an arbitration line 14 procedure. For purposes of this subclause, “project labor line 15 agreement” has the same meaning as set forth in paragraph (1) of line 16 subdivision (b) of Section 2500 of the Public Contract Code. line 17 (B)  (i)  The obligation of the contractors and subcontractors to line 18 pay prevailing wages pursuant to this paragraph may be enforced line 19 by any of the following:
line 20 (I)  The Labor Commissioner through the issuance of a civil line 21 wage and penalty assessment pursuant to Section 1741 of the Labor line 22 Code, which may be reviewed pursuant to Section 1742 of the line 23 Labor Code, within 18 months after the completion of the line 24 development.
line 25 (II)  An underpaid worker through an administrative complaint line 26 or civil action.
line 27 (III)  A joint labor-management committee through a civil action line 28 under Section 1771.2 of the Labor Code.
line 29 (ii)  If a civil wage and penalty assessment is issued pursuant to line 30 this paragraph, the contractor, subcontractor, and surety on a bond line 31 or bonds issued to secure the payment of wages covered by the line 32 assessment shall be liable for liquidated damages pursuant to line 33 Section 1742.1 of the Labor Code.
line 34 (iii)  This paragraph does not apply if all contractors and line 35 subcontractors performing work on the development are subject line 36 to a project labor agreement that requires the payment of prevailing line 37 wages to all construction workers employed in the execution of line 38 the development and provides for enforcement of that obligation line 39 through an arbitration procedure. For purposes of this clause, line 40 “project labor agreement” has the same meaning as set forth in 98 — 15 — SB 423

line 1 paragraph (1) of subdivision (b) of Section 2500 of the Public line 2 Contract Code.
line 3 (C)  Notwithstanding subdivision (c) of Section 1773.1 of the line 4 Labor Code, the requirement that employer payments not reduce line 5 the obligation to pay the hourly straight time or overtime wages line 6 found to be prevailing does not apply to those portions of line 7 development that are not a public work if otherwise provided in a line 8 bona fide collective bargaining agreement covering the worker. line 9 (D)  The requirement of this paragraph to pay at least the general line 10 prevailing rate of per diem wages does not preclude use of an line 11 alternative workweek schedule adopted pursuant to Section 511 line 12 or 514 of the Labor Code.
line 13 (E)  A development of 50 or more housing units approved by a line 14 local government pursuant to this section shall meet all of the line 15 following labor standards:
line 16 (i)  The development proponent shall require in contracts with line 17 construction contractors and shall certify to the local government line 18 that each contractor of any tier who will employ construction craft line 19 employees or will let subcontracts for at least 1,000 hours shall line 20 satisfy the requirements in clauses (ii) and (iii). A construction line 21 contractor is deemed in compliance with clauses (ii) and (iii) if it line 22 is signatory to a valid collective bargaining agreement that requires line 23 utilization of registered apprentices and expenditures on health line 24 care for employees and dependents.
line 25 (ii)  A contractor with construction craft employees shall either line 26 participate in an apprenticeship program approved by the California line 27 Division of Apprenticeship Standards pursuant to Section 3075 of line 28 the Labor Code, or request the dispatch of apprentices from a line 29 state-approved apprenticeship program under the terms and line 30 conditions set forth in Section 1777.5 of the Labor Code. A line 31 contractor without construction craft employees shall show a line 32 contractual obligation that its subcontractors comply with this line 33 clause.
line 34 (iii)  Each contractor with construction craft employees shall line 35 make health care expenditures for each employee in an amount line 36 per hour worked on the development equivalent to at least the line 37 hourly pro rata cost of a Covered California Platinum level plan line 38 for two adults 40 years of age and two dependents 0 to 14 years line 39 of age for the Covered California rating area in which the line 40 development is located. A contractor without construction craft 98 SB 423 — 16 —

line 1 employees shall show a contractual obligation that its line 2 subcontractors comply with this clause. Qualifying expenditures line 3 shall be credited toward compliance with prevailing wage payment line 4 requirements set forth in this paragraph.
line 5 (iv)  (I)  The development proponent shall provide to the local line 6 government, on a monthly basis while its construction contracts line 7 on the development are being performed, a report demonstrating line 8 compliance with clauses (ii) and (iii). The reports shall be line 9 considered public records under the California Public Records Act line 10 (Division 10 (commencing with Section 7920.000) of Title 1), and line 11 shall be open to public inspection.
line 12 (II)  A development proponent that fails to provide the monthly line 13 report shall be subject to a civil penalty for each month for which line 14 the report has not been provided, in the amount of 10 percent of line 15 the dollar value of construction work performed by that contractor line 16 on the development in the month in question, up to a maximum line 17 of ten thousand dollars ($10,000). Any contractor or subcontractor line 18 that fails to comply with clauses (ii) and (iii) shall be subject to a line 19 civil penalty of two hundred dollars ($200) per day for each worker line 20 employed in contravention of clauses (ii) and (iii). line 21 (III)  Penalties may be assessed by the Labor Commissioner line 22 within 18 months of completion of the development using the line 23 procedures for issuance of civil wage and penalty assessments line 24 specified in Section 1741 of the Labor Code, and may be reviewed line 25 pursuant to Section 1742 of the Labor Code. Penalties shall be line 26 deposited in the State Public Works Enforcement Fund established line 27 pursuant to Section 1771.3 of the Labor Code.
line 28 (v)  Each construction contractor shall maintain and verify line 29 payroll records pursuant to Section 1776 of the Labor Code. Each line 30 construction contractor shall submit payroll records directly to the line 31 Labor Commissioner at least monthly in a format prescribed by line 32 the Labor Commissioner in accordance with subparagraph (A) of line 33 paragraph (3) of subdivision (a) of Section 1771.4 of the Labor line 34 Code. The records shall include a statement of fringe benefits. line 35 Upon request by a joint labor-management cooperation committee line 36 established pursuant to the Federal Labor Management Cooperation line 37 Act of 1978 (29 U.S.C. Sec. 175a), the records shall be provided line 38 pursuant to subdivision (e) of Section 1776 of the Labor Code. line 39 (vi)  All construction contractors shall report any change in line 40 apprenticeship program participation or health care expenditures 98 — 17 — SB 423

line 1 to the local government within 10 business days, and shall reflect line 2 those changes on the monthly report. The reports shall be line 3 considered public records pursuant to the California Public Records line 4 Act (Division 10 (commencing with Section 7920.000) of Title 1) line 5 and shall be open to public inspection.
line 6 (vii)  A joint labor-management cooperation committee line 7 established pursuant to the Federal Labor Management Cooperation line 8 Act of 1978 (29 U.S.C. Sec. 175a) shall have standing to sue a line 9 construction contractor for failure to make health care expenditures line 10 pursuant to clause (iii) in accordance with Section 218.7 or 218.8 line 11 of the Labor Code.
line 12 (9)  Notwithstanding paragraph (8), a development that is subject line 13 to approval pursuant to this section is exempt from any requirement line 14 to pay prevailing wages, use a workforce participating in an line 15 apprenticeship, or provide health care expenditures if it satisfies line 16 both of the following:
line 17 (A)  The project consists of 10 or fewer units. line 18 (B)  The project is not a public work for purposes of Chapter 1 line 19 (commencing with Section 1720) of Part 7 of Division 2 of the line 20 Labor Code.
line 21 (10)  The development shall not be upon an existing parcel of line 22 land or site that is governed under the Mobilehome Residency Law line 23 (Chapter 2.5 (commencing with Section 798) of Title 2 of Part 2 line 24 of Division 2 of the Civil Code), the Recreational Vehicle Park line 25 Occupancy Law (Chapter 2.6 (commencing with Section 799.20) line 26 of Title 2 of Part 2 of Division 2 of the Civil Code), the line 27 Mobilehome Parks Act (Part 2.1 (commencing with Section 18200) line 28 of Division 13 of the Health and Safety Code), or the Special line 29 Occupancy Parks Act (Part 2.3 (commencing with Section 18860) line 30 of Division 13 of the Health and Safety Code).
line 31 (b)  (1)  (A)  (i)  Before submitting an application for a line 32 development subject to the streamlined, ministerial approval line 33 process described in subdivision (c), the development proponent line 34 shall submit to the local government a notice of its intent to submit line 35 an application. The notice of intent shall be in the form of a line 36 preliminary application that includes all of the information line 37 described in Section 65941.1, as that section read on January 1, line 38 2020.
line 39 (ii)  Upon receipt of a notice of intent to submit an application line 40 described in clause (i), the local government shall engage in a 98 SB 423 — 18 —

line 1 scoping consultation regarding the proposed development with line 2 any California Native American tribe that is traditionally and line 3 culturally affiliated with the geographic area, as described in line 4 Section 21080.3.1 of the Public Resources Code, of the proposed line 5 development. In order to expedite compliance with this subdivision, line 6 the local government shall contact the Native American Heritage line 7 Commission for assistance in identifying any California Native line 8 American tribe that is traditionally and culturally affiliated with line 9 the geographic area of the proposed development. line 10 (iii)  The timeline for noticing and commencing a scoping line 11 consultation in accordance with this subdivision shall be as follows:
line 12 (I)  The local government shall provide a formal notice of a line 13 development proponent’s notice of intent to submit an application line 14 described in clause (i) to each California Native American tribe line 15 that is traditionally and culturally affiliated with the geographic line 16 area of the proposed development within 30 days of receiving that line 17 notice of intent. The formal notice provided pursuant to this line 18 subclause shall include all of the following:
line 19 (ia)  A description of the proposed development. line 20 (ib)  The location of the proposed development. line 21 (ic)  An invitation to engage in a scoping consultation in line 22 accordance with this subdivision.
line 23 (II)  Each California Native American tribe that receives a formal line 24 notice pursuant to this clause shall have 30 days from the receipt line 25 of that notice to accept the invitation to engage in a scoping line 26 consultation.
line 27 (III)  If the local government receives a response accepting an line 28 invitation to engage in a scoping consultation pursuant to this line 29 subdivision, the local government shall commence the scoping line 30 consultation within 30 days of receiving that response. line 31 (B)  The scoping consultation shall recognize that California line 32 Native American tribes traditionally and culturally affiliated with line 33 a geographic area have knowledge and expertise concerning the line 34 resources at issue and shall take into account the cultural line 35 significance of the resource to the culturally affiliated California line 36 Native American tribe.
line 37 (C)  The parties to a scoping consultation conducted pursuant line 38 to this subdivision shall be the local government and any California line 39 Native American tribe traditionally and culturally affiliated with line 40 the geographic area of the proposed development. More than one 98 — 19 — SB 423

line 1 California Native American tribe traditionally and culturally line 2 affiliated with the geographic area of the proposed development line 3 may participate in the scoping consultation. However, the local line 4 government, upon the request of any California Native American line 5 tribe traditionally and culturally affiliated with the geographic area line 6 of the proposed development, shall engage in a separate scoping line 7 consultation with that California Native American tribe. The line 8 development proponent and its consultants may participate in a line 9 scoping consultation process conducted pursuant to this subdivision line 10 if all of the following conditions are met:
line 11 (i)  The development proponent and its consultants agree to line 12 respect the principles set forth in this subdivision. line 13 (ii)  The development proponent and its consultants engage in line 14 the scoping consultation in good faith.
line 15 (iii)  The California Native American tribe participating in the line 16 scoping consultation approves the participation of the development line 17 proponent and its consultants. The California Native American line 18 tribe may rescind its approval at any time during the scoping line 19 consultation, either for the duration of the scoping consultation or line 20 with respect to any particular meeting or discussion held as part line 21 of the scoping consultation.
line 22 (D)  The participants to a scoping consultation pursuant to this line 23 subdivision shall comply with all of the following confidentiality line 24 requirements:
line 25 (i)  Section 7927.000.
line 26 (ii)  Section 7927.005.
line 27 (iii)  Subdivision (c) of Section 21082.3 of the Public Resources line 28 Code.
line 29 (iv)  Subdivision (d) of Section 15120 of Title 14 of the line 30 California Code of Regulations.
line 31 (v)  Any additional confidentiality standards adopted by the line 32 California Native American tribe participating in the scoping line 33 consultation.
line 34 (E)  The California Environmental Quality Act (Division 13 line 35 (commencing with Section 21000) of the Public Resources Code) line 36 shall not apply to a scoping consultation conducted pursuant to line 37 this subdivision.
line 38 (2)  (A)  If, after concluding the scoping consultation, the parties line 39 find that no potential tribal cultural resource would be affected by line 40 the proposed development, the development proponent may submit 98 SB 423 — 20 —

line 1 an application for the proposed development that is subject to the line 2 streamlined, ministerial approval process described in subdivision line 3 (c).
line 4 (B)  If, after concluding the scoping consultation, the parties line 5 find that a potential tribal cultural resource could be affected by line 6 the proposed development and an enforceable agreement is line 7 documented between the California Native American tribe and the line 8 local government on methods, measures, and conditions for tribal line 9 cultural resource treatment, the development proponent may submit line 10 the application for a development subject to the streamlined, line 11 ministerial approval process described in subdivision (c). The local line 12 government shall ensure that the enforceable agreement is included line 13 in the requirements and conditions for the proposed development. line 14 (C)  If, after concluding the scoping consultation, the parties line 15 find that a potential tribal cultural resource could be affected by line 16 the proposed development and an enforceable agreement is not line 17 documented between the California Native American tribe and the line 18 local government regarding methods, measures, and conditions line 19 for tribal cultural resource treatment, the development shall not line 20 be eligible for the streamlined, ministerial approval process line 21 described in subdivision (c).
line 22 (D)  For purposes of this paragraph, a scoping consultation shall line 23 be deemed to be concluded if either of the following occur:
line 24 (i)  The parties to the scoping consultation document an line 25 enforceable agreement concerning methods, measures, and line 26 conditions to avoid or address potential impacts to tribal cultural line 27 resources that are or may be present.
line 28 (ii)  One or more parties to the scoping consultation, acting in line 29 good faith and after reasonable effort, conclude that a mutual line 30 agreement on methods, measures, and conditions to avoid or line 31 address impacts to tribal cultural resources that are or may be line 32 present cannot be reached.
line 33 (E)  If the development or environmental setting substantially line 34 changes after the completion of the scoping consultation, the local line 35 government shall notify the California Native American tribe of line 36 the changes and engage in a subsequent scoping consultation if line 37 requested by the California Native American tribe. line 38 (3)  A local government may only accept an application for line 39 streamlined, ministerial approval pursuant to this section if one of line 40 the following applies:
98 — 21 — SB 423

line 1 (A)  A California Native American tribe that received a formal line 2 notice of the development proponent’s notice of intent to submit line 3 an application pursuant to subclause (I) of clause (iii) of line 4 subparagraph (A) of paragraph (1) did not accept the invitation to line 5 engage in a scoping consultation.
line 6 (B)  The California Native American tribe accepted an invitation line 7 to engage in a scoping consultation pursuant to subclause (II) of line 8 clause (iii) of subparagraph (A) of paragraph (1) but substantially line 9 failed to engage in the scoping consultation after repeated line 10 documented attempts by the local government to engage the line 11 California Native American tribe.
line 12 (C)  The parties to a scoping consultation pursuant to this line 13 subdivision find that no potential tribal cultural resource will be line 14 affected by the proposed development pursuant to subparagraph line 15 (A) of paragraph (2).
line 16 (D)  A scoping consultation between a California Native line 17 American tribe and the local government has occurred in line 18 accordance with this subdivision and resulted in agreement line 19 pursuant to subparagraph (B) of paragraph (2).
line 20 (4)  A project shall not be eligible for the streamlined, ministerial line 21 process described in subdivision (c) if any of the following apply:
line 22 (A)  There is a tribal cultural resource that is on a national, state, line 23 tribal, or local historic register list located on the site of the project. line 24 (B)  There is a potential tribal cultural resource that could be line 25 affected by the proposed development and the parties to a scoping line 26 consultation conducted pursuant to this subdivision do not line 27 document an enforceable agreement on methods, measures, and line 28 conditions for tribal cultural resource treatment, as described in line 29 subparagraph (C) of paragraph (2).
line 30 (C)  The parties to a scoping consultation conducted pursuant line 31 to this subdivision do not agree as to whether a potential tribal line 32 cultural resource will be affected by the proposed development. line 33 (5)  (A)  If, after a scoping consultation conducted pursuant to line 34 this subdivision, a project is not eligible for the streamlined, line 35 ministerial process described in subdivision (c) for any or all of line 36 the following reasons, the local government shall provide written line 37 documentation of that fact, and an explanation of the reason for line 38 which the project is not eligible, to the development proponent line 39 and to any California Native American tribe that is a party to that line 40 scoping consultation:
98 SB 423 — 22 —

line 1 (i)  There is a tribal cultural resource that is on a national, state, line 2 tribal, or local historic register list located on the site of the project, line 3 as described in subparagraph (A) of paragraph (4). line 4 (ii)  The parties to the scoping consultation have not documented line 5 an enforceable agreement on methods, measures, and conditions line 6 for tribal cultural resource treatment, as described in subparagraph line 7 (C) of paragraph (2) and subparagraph (B) of paragraph (4). line 8 (iii)  The parties to the scoping consultation do not agree as to line 9 whether a potential tribal cultural resource will be affected by the line 10 proposed development, as described in subparagraph (C) of line 11 paragraph (4).
line 12 (B)  The written documentation provided to a development line 13 proponent pursuant to this paragraph shall include information on line 14 how the development proponent may seek a conditional use permit line 15 or other discretionary approval of the development from the local line 16 government.
line 17 (6)  This section is not intended, and shall not be construed, to line 18 limit consultation and discussion between a local government and line 19 a California Native American tribe pursuant to other applicable line 20 law, confidentiality provisions under other applicable law, the line 21 protection of religious exercise to the fullest extent permitted under line 22 state and federal law, or the ability of a California Native American line 23 tribe to submit information to the local government or participate line 24 in any process of the local government.
line 25 (7)  For purposes of this subdivision:
line 26 (A)  “Consultation” means the meaningful and timely process line 27 of seeking, discussing, and considering carefully the views of line 28 others, in a manner that is cognizant of all parties’ cultural values line 29 and, where feasible, seeking agreement. Consultation between line 30 local governments and Native American tribes shall be conducted line 31 in a way that is mutually respectful of each party’s sovereignty. line 32 Consultation shall also recognize the tribes’ potential needs for line 33 confidentiality with respect to places that have traditional tribal line 34 cultural importance. A lead agency shall consult the tribal line 35 consultation best practices described in the “State of California line 36 Tribal Consultation Guidelines: Supplement to the General Plan line 37 Guidelines” prepared by the Office of Planning and Research. line 38 (B)  “Scoping” means the act of participating in early discussions line 39 or investigations between the local government and California line 40 Native American tribe, and the development proponent if 98 — 23 — SB 423

line 1 authorized by the California Native American tribe, regarding the line 2 potential effects a proposed development could have on a potential line 3 tribal cultural resource, as defined in Section 21074 of the Public line 4 Resources Code, or California Native American tribe, as defined line 5 in Section 21073 of the Public Resources Code.
line 6 (8)  This subdivision shall not apply to any project that has been line 7 approved under the streamlined, ministerial approval process line 8 provided under this section before the effective date of the act line 9 adding this subdivision.
line 10 (c)  (1)  If Notwithstanding any local law, if a local government’s line 11 planning director or any equivalent local government staff, line 12 including all relevant planning and permitting departments, line 13 equivalent position determines that a development submitted line 14 pursuant to this section is consistent with the objective planning line 15 standards specified in subdivision (a) and pursuant to paragraph line 16 (3) of this subdivision, it the local government shall approve the line 17 development. Upon a determination that a development submitted line 18 pursuant to this section is in conflict with any of the objective line 19 planning standards specified in subdivision (a), the local line 20 government staff or relevant local planning and permitting line 21 department that made the determination shall provide the line 22 development proponent written documentation of which standard line 23 or standards the development conflicts with, and an explanation line 24 for the reason or reasons the development conflicts with that line 25 standard or standards, as follows:
line 26 (A)  Within 60 days of submittal of the development to the local line 27 government pursuant to this section if the development contains line 28 150 or fewer housing units.
line 29 (B)  Within 90 days of submittal of the development to the local line 30 government pursuant to this section if the development contains line 31 more than 150 housing units.
line 32 (2)  If the local government’s planning director or any equivalent line 33 local government staff equivalent position fails to provide the line 34 required documentation pursuant to paragraph (1), the development line 35 shall be deemed to satisfy the objective planning standards line 36 specified in subdivision (a).
line 37 (3)  For purposes of this section, a development is consistent line 38 with the objective planning standards specified in subdivision (a) line 39 if there is substantial evidence that would allow a reasonable person line 40 to conclude that the development is consistent with the objective 98 SB 423 — 24 —

line 1 planning standards. The local government shall not determine that line 2 a development, including an application for a modification under line 3 subdivision (g), (h), is in conflict with the objective planning line 4 standards on the basis that application materials are not included, line 5 if the application contains substantial evidence that would allow line 6 a reasonable person to conclude that the development is consistent line 7 with the objective planning standards.
line 8 (4)  For purposes of evaluating consistency with the objective line 9 planning standards under this section, the local government shall line 10 not require a development proponent to provide consultant studies line 11 requiring presubmittal scope approval by the local government or line 12 other studies or materials that are unnecessary to ascertain line 13 consistency with the objective planning standards. line 14 (4)  Upon submittal of an application for streamlined, ministerial line 15 approval pursuant to this section to the local government, all line 16 departments of the local government that are required to issue an line 17 approval of the development prior to the granting of an entitlement line 18 shall comply with the requirements of this section within the time line 19 periods specified in paragraph (1).
line 20 (d)  (1)  Any design review of the development may be conducted line 21 by the local government’s planning commission or any equivalent line 22 board or commission responsible for design review. That design line 23 review shall be objective and be strictly focused on assessing line 24 compliance with criteria required for streamlined projects, as well line 25 as any reasonable objective design standards published and adopted line 26 by ordinance or resolution by a local jurisdiction before submission line 27 of a development application, and shall be broadly applicable to line 28 development within the jurisdiction. That design review shall be line 29 completed, and if the development is consistent with all objective line 30 standards, the local government shall approve the development as line 31 follows and shall not in any way inhibit, chill, or preclude the line 32 ministerial approval provided by this section or its effect, as line 33 applicable:
line 34 (A)  Within 90 days of submittal of the development to the local line 35 government pursuant to this section if the development contains line 36 150 or fewer housing units.
line 37 (B)  Within 180 days of submittal of the development to the line 38 local government pursuant to this section if the development line 39 contains more than 150 housing units.
98 — 25 — SB 423

line 1 (2)  If the development is consistent with the requirements of line 2 subparagraph (A) or (B) of paragraph (9) of subdivision (a) and line 3 is consistent with all objective subdivision standards in the local line 4 subdivision ordinance, an application for a subdivision pursuant line 5 to the Subdivision Map Act (Division 2 (commencing with Section line 6 66410)) shall be exempt from the requirements of the California line 7 Environmental Quality Act (Division 13 (commencing with Section line 8 21000) of the Public Resources Code) and shall be subject to the line 9 public oversight timelines set forth in paragraph (1). line 10 (3)  If a local government determines that a development line 11 submitted pursuant to this section is in conflict with any of the line 12 standards imposed pursuant to paragraph (1), it shall provide the line 13 development proponent written documentation of which objective line 14 standard or standards the development conflicts with, and an line 15 explanation for the reason or reasons the development conflicts line 16 with that objective standard or standards consistent with the line 17 timelines described in paragraph (1) of subdivision (c). line 18 (e)  (1)  Notwithstanding any other law, a local government, line 19 whether or not it has adopted an ordinance governing automobile line 20 parking requirements in multifamily developments, shall not line 21 impose automobile parking standards for a streamlined line 22 development that was approved pursuant to this section in any of line 23 the following instances:
line 24 (A)  The development is located within one-half mile of public line 25 transit.
line 26 (B)  The development is located within an architecturally and line 27 historically significant historic district.
line 28 (C)  When on-street parking permits are required but not offered line 29 to the occupants of the development.
line 30 (D)  When there is a car share vehicle located within one block line 31 of the development.
line 32 (2)  If the development does not fall within any of the categories line 33 described in paragraph (1), the local government shall not impose line 34 automobile parking requirements for streamlined developments line 35 approved pursuant to this section that exceed one parking space line 36 per unit.
line 37 (f)  Notwithstanding any law, a local government shall not line 38 require any of the following prior to approving a development that line 39 meets the requirements of this section:
98 SB 423 — 26 —

line 1 (1)  Studies, information, or other materials that do not pertain line 2 directly to determining whether the development is consistent with line 3 the objective planning standards applicable to the development. line 4 (2)  (A)  Compliance with any standards necessary to receive a line 5 postentitlement permit.
line 6 (B)  This paragraph does not prohibit a local agency from line 7 requiring compliance with any standards necessary to receive a line 8 postentitlement permit after a permit has been issued pursuant to line 9 this section.
line 10 (C)  For purposes of this paragraph, “postentitlement permit” line 11 has the same meaning as provided in subparagraph (A) of line 12 paragraph (3) of subdivision (j) of Section 65913.3. line 13 (f)
line 14 (g)  (1)  If a local government approves a development pursuant line 15 to this section, then, notwithstanding any other law, that approval line 16 shall not expire if the project satisfies both of the following line 17 requirements:
line 18 (A)  The project includes public investment in housing line 19 affordability, beyond tax credits.
line 20 (B)  At least 50 percent of the units are affordable to households line 21 making at or below 80 percent of the area median income. line 22 (2)  (A)  If a local government approves a development pursuant line 23 to this section, and the project does not satisfy the requirements line 24 of subparagraphs (A) and (B) of paragraph (1), that approval shall line 25 remain valid for three years from the date of the final action line 26 establishing that approval, or if litigation is filed challenging that line 27 approval, from the date of the final judgment upholding that line 28 approval. Approval shall remain valid for a project provided line 29 construction activity, including demolition and grading activity, line 30 on the development site has begun pursuant to a permit issued by line 31 the local jurisdiction and is in progress. For purposes of this line 32 subdivision, “in progress” means one of the following:
line 33 (i)  The construction has begun and has not ceased for more than line 34 180 days.
line 35 (ii)  If the development requires multiple building permits, an line 36 initial phase has been completed, and the project proponent has line 37 applied for and is diligently pursuing a building permit for a line 38 subsequent phase, provided that once it has been issued, the line 39 building permit for the subsequent phase does not lapse. 98 — 27 — SB 423

line 1 (B)  Notwithstanding subparagraph (A), a local government may line 2 grant a project a one-time, one-year extension if the project line 3 proponent can provide documentation that there has been line 4 significant progress toward getting the development construction line 5 ready, such as filing a building permit application. line 6 (3)  If the development proponent requests a modification line 7 pursuant to subdivision (g), (h), then the time during which the line 8 approval shall remain valid shall be extended for the number of line 9 days between the submittal of a modification request and the date line 10 of its final approval, plus an additional 180 days to allow time to line 11 obtain a building permit. If litigation is filed relating to the line 12 modification request, the time shall be further extended during the line 13 pendency of the litigation. The extension required by this paragraph line 14 shall only apply to the first request for a modification submitted line 15 by the development proponent.
line 16 (4)  The amendments made to this subdivision by the act that line 17 added this paragraph shall also be retroactively applied to line 18 developments approved prior to January 1, 2022. line 19 (g)
line 20 (h)  (1)  (A)  A development proponent may request a line 21 modification to a development that has been approved under the line 22 streamlined, ministerial approval process provided in subdivision line 23 (c) if that request is submitted to the local government before the line 24 issuance of the final building permit required for construction of line 25 the development.
line 26 (B)  Except as provided in paragraph (3), the local government line 27 shall approve a modification if it determines that the modification line 28 is consistent with the objective planning standards specified in line 29 subdivision (a) that were in effect when the original development line 30 application was first submitted.
line 31 (C)  The local government shall evaluate any modifications line 32 requested pursuant to this subdivision for consistency with the line 33 objective planning standards using the same assumptions and line 34 analytical methodology that the local government originally used line 35 to assess consistency for the development that was approved for line 36 streamlined, ministerial approval pursuant to subdivision (c). line 37 (D)  A guideline that was adopted or amended by the department line 38 pursuant to subdivision (m) (n) after a development was approved line 39 through the streamlined, ministerial approval process described in 98 SB 423 — 28 —

line 1 subdivision (c) shall not be used as a basis to deny proposed line 2 modifications.
line 3 (2)  Upon receipt of the development proponent’s application line 4 requesting a modification, the local government shall determine line 5 if the requested modification is consistent with the objective line 6 planning standard and either approve or deny the modification line 7 request within 60 days after submission of the modification, or line 8 within 90 days if design review is required.
line 9 (3)  Notwithstanding paragraph (1), the local government may line 10 apply objective planning standards adopted after the development line 11 application was first submitted to the requested modification in line 12 any of the following instances:
line 13 (A)  The development is revised such that the total number of line 14 residential units or total square footage of construction changes line 15 by 15 percent or more. The calculation of the square footage of line 16 construction changes shall not include underground space. line 17 (B)  The development is revised such that the total number of line 18 residential units or total square footage of construction changes line 19 by 5 percent or more and it is necessary to subject the development line 20 to an objective standard beyond those in effect when the line 21 development application was submitted in order to mitigate or line 22 avoid a specific, adverse impact, as that term is defined in line 23 subparagraph (A) of paragraph (1) of subdivision (j) of Section line 24 65589.5, upon the public health or safety and there is no feasible line 25 alternative method to satisfactorily mitigate or avoid the adverse line 26 impact. The calculation of the square footage of construction line 27 changes shall not include underground space.
line 28 (C)  (i)  Objective building standards contained in the California line 29 Building Standards Code (Title 24 of the California Code of line 30 Regulations), including, but not limited to, building plumbing, line 31 electrical, fire, and grading codes, may be applied to all line 32 modification applications that are submitted prior to the first line 33 building permit application. Those standards may be applied to line 34 modification applications submitted after the first building permit line 35 application if agreed to by the development proponent. line 36 (ii)  The amendments made to clause (i) by the act that added line 37 clause (i) shall also be retroactively applied to modification line 38 applications submitted prior to January 1, 2022. line 39 (4)  The local government’s review of a modification request line 40 pursuant to this subdivision shall be strictly limited to determining 98 — 29 — SB 423

line 1 whether the modification, including any modification to previously line 2 approved density bonus concessions or waivers, modify the line 3 development’s consistency with the objective planning standards line 4 and shall not reconsider prior determinations that are not affected line 5 by the modification.
line 6 (h)
line 7 (i)  (1)  A local government shall not adopt or impose any line 8 requirement, including, but not limited to, increased fees or line 9 inclusionary housing requirements, that applies to a project solely line 10 or partially on the basis that the project is eligible to receive line 11 ministerial or streamlined approval pursuant to this section. line 12 (2)  (A)  A local government shall issue a subsequent permit line 13 required for a development approved under this section if the line 14 application substantially complies with the development as it was line 15 approved pursuant to subdivision (c). Upon receipt of an line 16 application for a subsequent permit, the local government shall line 17 process the permit without unreasonable delay and shall not impose line 18 any procedure or requirement that is not imposed on projects that line 19 are not approved pursuant to this section. The local government line 20 shall consider the application for subsequent permits based upon line 21 the objective standards specified in any state or local laws that line 22 were in effect when the original development application was line 23 submitted, unless the development proponent agrees to a change line 24 in objective standards. Issuance of subsequent permits shall line 25 implement the approved development, and review of the permit line 26 application shall not inhibit, chill, or preclude the development. line 27 For purposes of this paragraph, a “subsequent permit” means a line 28 permit required subsequent to receiving approval under subdivision line 29 (c), and includes, but is not limited to, demolition, grading, line 30 encroachment, and building permits and final maps, if necessary. line 31 (B)  The amendments made to subparagraph (A) by the act that line 32 added this subparagraph shall also be retroactively applied to line 33 subsequent permit applications submitted prior to January 1, 2022. line 34 (3)  (A)  If a public improvement is necessary to implement a line 35 development that is subject to the streamlined, ministerial approval line 36 pursuant to this section, including, but not limited to, a bicycle line 37 lane, sidewalk or walkway, public transit stop, driveway, street line 38 paving or overlay, a curb or gutter, a modified intersection, a street line 39 sign or street light, landscape or hardscape, an above-ground or line 40 underground utility connection, a water line, fire hydrant, storm 98 SB 423 — 30 —

line 1 or sanitary sewer connection, retaining wall, and any related work, line 2 and that public improvement is located on land owned by the local line 3 government, to the extent that the public improvement requires line 4 approval from the local government, the local government shall line 5 not exercise its discretion over any approval relating to the public line 6 improvement in a manner that would inhibit, chill, or preclude the line 7 development.
line 8 (B)  If an application for a public improvement described in line 9 subparagraph (A) is submitted to a local government, the local line 10 government shall do all of the following:
line 11 (i)  Consider the application based upon any objective standards line 12 specified in any state or local laws that were in effect when the line 13 original development application was submitted. line 14 (ii)  Conduct its review and approval in the same manner as it line 15 would evaluate the public improvement if required by a project line 16 that is not eligible to receive ministerial or streamlined approval line 17 pursuant to this section.
line 18 (C)  If an application for a public improvement described in line 19 subparagraph (A) is submitted to a local government, the local line 20 government shall not do either of the following:
line 21 (i)  Adopt or impose any requirement that applies to a project line 22 solely or partially on the basis that the project is eligible to receive line 23 ministerial or streamlined approval pursuant to this section. line 24 (ii)  Unreasonably delay in its consideration, review, or approval line 25 of the application.
line 26 (i)
line 27 (j)  (1)  This section shall not affect a development proponent’s line 28 ability to use any alternative streamlined by right permit processing line 29 adopted by a local government, including the provisions of line 30 subdivision (i) of Section 65583.2.
line 31 (2)  This section shall not prevent a development from also line 32 qualifying as a housing development project entitled to the line 33 protections of Section 65589.5. This paragraph does not constitute line 34 a change in, but is declaratory of, existing law. line 35 (j)
line 36 (k)  The California Environmental Quality Act (Division 13 line 37 (commencing with Section 21000) of the Public Resources Code) line 38 does not apply to actions taken by a state agency, local government, line 39 or the San Francisco Bay Area Rapid Transit District to:
98 — 31 — SB 423

line 1 (1)  Lease, convey, or encumber land owned by the local line 2 government or the San Francisco Bay Area Rapid Transit District line 3 or to facilitate the lease, conveyance, or encumbrance of land line 4 owned by the local government, or for the lease of land owned by line 5 the San Francisco Bay Area Rapid Transit District in association line 6 with an eligible TOD project, as defined pursuant to Section line 7 29010.1 of the Public Utilities Code, nor to any decisions line 8 associated with that lease, or to provide financial assistance to a line 9 development that receives streamlined approval pursuant to this line 10 section that is to be used for housing for persons and families of line 11 very low, low, or moderate income, as defined in Section 50093 line 12 of the Health and Safety Code.
line 13 (2)  Approve improvements located on land owned by the local line 14 government or the San Francisco Bay Area Rapid Transit District line 15 that are necessary to implement a development that receives line 16 streamlined approval pursuant to this section that is to be used for line 17 housing for persons and families of very low, low, or moderate line 18 income, as defined in Section 50093 of the Health and Safety Code. line 19 (k)
line 20 (l)  For purposes of establishing the total number of units in a line 21 development under this chapter, a development or development line 22 project includes both of the following:
line 23 (1)  All projects developed on a site, regardless of when those line 24 developments occur.
line 25 (2)  All projects developed on sites adjacent to a site developed line 26 pursuant to this chapter if, after January 1, 2023, the adjacent site line 27 had been subdivided from the site developed pursuant to this line 28 chapter.
line 29 (l)
line 30 (m)  For purposes of this section, the following terms have the line 31 following meanings:
line 32 (1)  “Affordable housing cost” has the same meaning as set forth line 33 in Section 50052.5 of the Health and Safety Code. line 34 (2)  (A)  Subject to the qualification provided by subparagraphs line 35 (B) and (C), “affordable rent” has the same meaning as set forth line 36 in Section 50053 of the Health and Safety Code. line 37 (B)  For a development for which an application pursuant to this line 38 section was submitted prior to January 1, 2019, that includes 500 line 39 units or more of housing, and that dedicates 50 percent of the total line 40 number of units, before calculating any density bonus, to housing 98 SB 423 — 32 —

line 1 affordable to households making at, or below, 80 percent of the line 2 area median income, affordable rent for at least 30 percent of these line 3 units shall be set at an affordable rent as defined in subparagraph line 4 (A) and “affordable rent” for the remainder of these units shall line 5 mean a rent that is consistent with the maximum rent levels for a line 6 housing development that receives an allocation of state or federal line 7 low-income housing tax credits from the California Tax Credit line 8 Allocation Committee.
line 9 (C)  For a development that dedicates 100 percent of units, line 10 exclusive of a manager’s unit or units, to lower income households, line 11 “affordable rent” shall mean a rent that is consistent with the line 12 maximum rent levels stipulated by the public program providing line 13 financing for the development.
line 14 (3)  “Department” means the Department of Housing and line 15 Community Development.
line 16 (4)  “Development proponent” means the developer who submits line 17 a housing development project application to a local government line 18 under the streamlined, ministerial review process pursuant to this line 19 section.
line 20 (5)  “Completed entitlements” means a housing development line 21 that has received all the required land use approvals or entitlements line 22 necessary for the issuance of a building permit. line 23 (6)  “Health care expenditures” include contributions under line 24 Section 401(a), 501(c), or 501(d) of the Internal Revenue Code line 25 and payments toward “medical care,” as defined in Section line 26 213(d)(1) of the Internal Revenue Code.
line 27 (7)  “Housing development project” has the same meaning as in line 28 Section 65589.5.
line 29 (8)  “Locality” or “local government” means a city, including a line 30 charter city, a county, including a charter county, or a city and line 31 county, including a charter city and county.
line 32 (9)  “Moderate-income housing units” means housing units with line 33 an affordable housing cost or affordable rent for persons and line 34 families of moderate income, as that term is defined in Section line 35 50093 of the Health and Safety Code.
line 36 (10)  “Objective planning standards” shall not include standards line 37 in the California Building Standards Code (Title 24 of the line 38 California Code of Regulations), local building codes, fire codes, line 39 noise ordinances, other codes requiring detailed technical line 40 specifications, studies that are evaluated with subsequent permits, 98 — 33 — SB 423

line 1 or other standards that are not reasonably ascertainable by the local line 2 government within the time limits set forth in subdivisions (c) and line 3 (d). Excluded objective planning standards include, but are not line 4 limited to, construction logistics plans, plumbing plans, electrical line 5 plans, grading, excavation plans, geotechnical studies, and offsite line 6 public improvement plans.
line 7 (11)
line 8 (10)  “Production report” means the information reported line 9 pursuant to subparagraph (H) of paragraph (2) of subdivision (a) line 10 of Section 65400.
line 11 (12)
line 12 (11)  “State agency” includes every state office, officer, line 13 department, division, bureau, board, and commission, but does not line 14 include the California State University or the University of line 15 California.
line 16 (13)
line 17 (12)  “Reporting period” means either of the following:
line 18 (A)  The first half of the regional housing needs assessment line 19 cycle.
line 20 (B)  The last half of the regional housing needs assessment cycle. line 21 (14)
line 22 (13)  “Urban uses” means any current or former residential, line 23 commercial, public institutional, transit or transportation passenger line 24 facility, or retail use, or any combination of those uses. line 25 (m)
line 26 (n)  The department may review, adopt, amend, and repeal line 27 guidelines to implement uniform standards or criteria that line 28 supplement or clarify the terms, references, or standards set forth line 29 in this section. Any guidelines or terms adopted pursuant to this line 30 subdivision shall not be subject to Chapter 3.5 (commencing with line 31 Section 11340) of Part 1 of Division 3 of Title 2 of the Government line 32 Code.
line 33 (n)
line 34 (o)  The determination of whether an application for a line 35 development is subject to the streamlined ministerial approval line 36 process provided by subdivision (c) is not a “project” as defined line 37 in Section 21065 of the Public Resources Code.
line 38 (o)
line 39 (p)  Notwithstanding any law, for purposes of this section and line 40 for development on property owned by or leased to the state, the 98 SB 423 — 34 —

line 1 Department of General Services may act in the place of a locality line 2 or local government, at the discretion of the department. line 3 (p)
line 4 (q)  The provisions of clause (iii) of subparagraph (E) of line 5 paragraph (8) of subdivision (a) relating to health care expenditures line 6 are distinct and severable from the remaining provisions of this line 7 section. However, the remaining portions of paragraph (8) of line 8 subdivision (a) are a material and integral part of this section and line 9 are not severable. If any provision or application of paragraph (8) line 10 of subdivision (a) is held invalid, this entire section shall be null line 11 and void.
line 12 (q)
line 13 (r)  It is the policy of the state that this section be interpreted line 14 and implemented in a manner to afford the fullest possible weight line 15 to the interest of, and the approval and provision of, increased line 16 housing supply.
line 17 SEC. 3. The Legislature finds and declares that ensuring access line 18 to affordable housing is a matter of statewide concern and is not line 19 a municipal affair as that term is used in Section 5 of Article XI line 20 of the California Constitution. Therefore, Section 2 of this act line 21 amending Section 65913.4 of the Government Code applies to all line 22 cities, including charter cities.
line 23 SEC. 4. No reimbursement is required by this act pursuant to line 24 Section 6 of Article XIIIB of the California Constitution because line 25 a local agency or school district has the authority to levy service line 26 charges, fees, or assessments sufficient to pay for the program or line 27 level of service mandated by this act or because costs that may be line 28 incurred by a local agency or school district will be incurred line 29 because this act creates a new crime or infraction, eliminates a line 30 crime or infraction, or changes the penalty for a crime or infraction, line 31 within the meaning of Section 17556 of the Government Code, or line 32 changes the definition of a crime within the meaning of Section 6 line 33 of Article XIIIB of the California Constitution.

O
98 — 35 — SB 423

8 CITY COUNCIL STAFF REPORT
MEETING DATE: April 19, 2023
PREPARED BY:

Chris Ghione, Public Services Director
APPROVED BY: City Manager

RECEIVE UPDATE REGARDING PAVEMENT REHABILITATION

PLANNING

RECOMMENDATION(S)
Receive update on pavement rehabilitation planning.

COUNCIL PRIORITIES, GOALS & STRATEGIES
City Council Ongoing Priorities
Maintaining and Enhancing Infrastructure
2022-2023 Strategic Priorities
Transportation
REPORT NARRATIVE:

For the last half of a decade, the City has made continued strides to improve its pavement conditions across the City. The City's most recent overall Pavement Condition Index (PCI) rating for the end of calendar year 2022 was 75. This is up from an overall PCI of 73 at the end of 2021. The City has steadily improved the condition of its streets since 2018 through investment of City dollars, annual funding from State Senate Bill 1 (Road Repair and Accountability Act of 2017), and Measure B funding (2016 voter approved countywide half-cent sales tax to enhance transportation).

City staff are in the process of bidding the 2023 Pavement Rehabilitation Project. As planned, the project prioritizes the repair of the City’s arterial and collector roadways, while allocating available funds to the resurfacing of residential streets that are significantly degraded. However, budget limitations have prevented the City from funding all the previously planned work. Notably, due to cost constraints, the Jackson Meadows neighborhood work will need to be delayed. However, the work is still prioritized within the 5-year plan.

This update is provided now to provide the Council with a high level outline of future pavement rehabilitation planning. The current plan for rehabilitation of roadways is outlined below:
2021 Pavement Rehabilitation Project

8 • Tennant Avenue from Vineyard Avenue to Monterey Road • Peak Avenue from Dunne Avenue to Wright Avenue
• DeWitt Avenue from Alkire Avenue to Claremont Avenue
• Main Avenue from DeWitt Avenue to Peak Avenue
• Wright Avenue from Peak Avenue to Monterey Road
• Farallon Avenue from Alkire Avenue to Peak Avenue
• Alkire Avenue from DeWitt Avenue to Peak Avenue
• Torrey Court
• West Central Ave from Monterey Road to Del Monte Avenue • Park Way
2022 Pavement Rehabilitation Project
• East Dunne Avenue from Hill Road to City limit (Grant Funded) • Jackson Oaks Drive and Streets within Jackson Oaks neighborhood (Resurfacing work on Oak View Circle and Hilltop Court was deferred pending water line replacement work in these streets)
• Hill Road from East Dunne to Barrett Avenue/City limit • Murphy Road from San Pedro to the City limit
• Rustling Oaks Court
• Condit Road from San Pedro Avenue to Tennant Avenue
• Church from San Pedro Avenue to Barrett Avenue
• Mast between Church Street and Vineyard Boulevard
• Vineyard Boulevard between Tennant Avenue and Mast Avenue • West Main Avenue from DeWitt Avenue to John Telfer Drive • Via Grande
• Hidalgo Court
• La Giralda Court
• Lindo Lane (Future repair work needed to address unstable roadway subgrade) • Main Avenue from Monterey to Butterfield – Not completed 2023 Planned Pavement Rehabilitation
• Main Avenue from Monterey Road to Butterfield Boulevard • Streets within La Crosse Drive Area including: La Crosse Drive, La Mirada Court, La Porte Court, La Prenda Court, La Rena Court, La Roda Court, La Escuela Court, Descansa Court, El Pajaro Court, La Mesa Court, La Sierra Court, La Bella Court, La Honda Court, La Mar Court, La Jolla Court • East Middle between Monterey and the Railroad Tracks
• Oak View Circle
2024 Planned Pavement Rehabilitation

8 • East Dunne Avenue Overpass from Condit Road to Laurel Road • Del Monte Avenue from 2nd Street to Keystone Avenue
• Del Monte Avenue from Spring Avenue to Cosmo Avenue
• Keystone Avenue
• East Central from Monterey to about 20 feet from the intersection • San Pedro from Butterfield Boulevard to Walnut Grove Drive • San Ramon from San Pedro Avenue to San Marcos Drive
• Markross Court
• Cochrane Circle
• Railroad Ave from Tennant Avenue to San Pedro Avenue
• Hilltop Court
• Arterial Street Sealing – Streets TBD
2025 Planned Pavement Rehabilitation
• Monterey Road from Cochrane Road to East Middle Avenue/City limit - with Grant Project
• Llagas Road
• Streets within Woodland Acres Neighborhood, including Rolling Hills Drive, Woodland Avenue, Woodland Court, Rocky Ridge Road, Greenwood Avenue, Black Oak Court
• Sunnyside Avenue
• Arterial Street Sealing – Streets TBD
2026 Planned Pavement Rehabilitation
• Streets within western Jackson Meadows Neighborhoods, including Gallop Drive, Hay Loft Way, Hay Loft Court, Fountain Oaks Drive, Fountain Court, Saddleback Drive, Gitano Court, Huston Court, Pinto Court, Palomino Court, Buckskin Court, Sorrel Way, Cimarron Drive, Calero Court, Saddlehorn Way, Ranger Court, Arabian Court, Feliz Court, Ponderosa Court, Fountain Avenue • Arterial Street Sealing – Streets TBD
2027 Planned Pavement Rehabilitation
• Calle Mazatan Area
• Peppertree Drive neighborhood east of Nordstrom School • Arterial Street Sealing – Streets TBD
The plan is consistent with the City’s past practice of prioritizing arterial and collector streets, while beginning the process of repairing the worst residential streets in the City.

The City has successfully maintained and/ or improved its overall weighted pavement

8 condition index over the last 5 years through consistent investment.

COMMUNITY ENGAGEMENT:

City staff are working on a significant communication planning effort to be implemented ahead of the work, which is planned to occur during the summer months. City staff regularly receive requests for pavement repairs from throughout the community and these are reviewed and repaired by street maintenance staff if smaller in nature or incorporated into the larger pavement rehab planning if larger in nature.

ALTERNATIVE ACTIONS:

The City Council could provide staff with additional direction or feedback as deemed appropriate.

PRIOR CITY COUNCIL AND COMMISSION ACTIONS:

The City Council has taken significant actions related to funding pavement rehabilitation. Current appropriations for the 2023 Pavement Rehabilitation Project are funded through the Fiscal Year 2022/23 and 2023/24 Budget.

FISCAL AND RESOURCE IMPACT:

There is no fiscal impact associated with receiving the report. Award of the project and final costs for the 2023 Pavement Rehabilitation project will return to the Council for approval.

CEQA (California Environmental Quality Act):

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

9 CITY COUNCIL STAFF REPORT
MEETING DATE: April 19, 2023
PREPARED BY:

Chris Ghione, Public Services Director
APPROVED BY: City Manager

APPROVE LEADERSHIP MORGAN HILL RENOVATION AND ART

PROJECT AT THE STAGE PICNIC AREA OF COMMUNITY PARK

RECOMMENDATION(S)

1. Approve Leadership Morgan Hill - Class of 2023 project for the renovation and installation of artwork at the Stage Picnic Area of Community Park; and

2. Delegate final approval of artwork to Leadership Morgan Hill and a subcommittee of the Library, Culture and Arts Commission.

COUNCIL PRIORITIES, GOALS & STRATEGIES
City Council Ongoing Priorities
Maintaining and Enhancing Infrastructure
Supporting our Youth, Seniors, and Entire Community
REPORT NARRATIVE:

The 2023 Class of Leadership Morgan Hill has reached out to the City looking to coordinate their annual class project. Each year Leadership Morgan Hill hosts a leadership class for community members specific to Morgan Hill. Part of completion of the program requires the class to complete a public service project. The class of 2023 has proposed a project, "Building Community at Community Park: Stage BBQ Mural and Renovation." The project will include renovation and adding public art to the area.

The donation of the work on the project must be approved by the City Council. The project proposal is attached to this staff report for review. Both the Library, Culture and Arts Commission and Parks and Recreation Commission have recommended approval of the project.

The Leadership Class has not yet selected final artwork for the project. Per the permanent art policy for the City, the selected art will need to come back to the Commission and Council unless the delegation of approval of the final artwork is made.

The Leadership Class has requested the final artwork at the project be decided by the Leadership Class with approval of a subcommittee of the Library, Culture and Arts Commission. The Library, Culture and Arts Commission has also recommended this approach.

9 COMMUNITY ENGAGEMENT:

EmpowerThe project was brought forward by community members enrolled in Leadership Morgan Hill (Class) and will be implemented by these community members.

ALTERNATIVE ACTIONS:

The City Council could choose not to approve the project and provide the Leadership Class of 2023 with alternate feedback. The City Council could also choose not to delegate authority on the final artwork and request that the artwork return to the Library, Culture and Arts Commission and the City Council for final review.

PRIOR CITY COUNCIL AND COMMISSION ACTIONS:

The City has worked with Leadership Morgan Hill on various class projects over the last two decades. The City Council has most recently approved the utility box art project conducted in 2018, the installation of artistic bike racks in the Downtown in 2019, and the construction of gateway monument signs in 2022.

FISCAL AND RESOURCE IMPACT:

The renovation and artwork project at Community Park is not anticipated to create significant ongoing operational expenses. The Project will require limited support from the Public Services Department, but work will renovate a City facility that otherwise would not be renovated.

CEQA (California Environmental Quality Act):

Categorical Exemption
Minor alterations to existing City facilities fall within the CEQA categorical exemption of Class 1, Existing Facilities.

Chris Ghione
[email protected]
Public Services Director
City of Morgan Hill
We have presented the Class of 2023 proposed project Building Community at Community Park: Stage BBQ Mural and Renovation to the LMH Board. They had a favorable response, but wanted to clarify some items before issuing final approval, which we hope to receive by March 20. Because we are committed to completing the project in a timely manner, we want to go ahead and give you this overview of our project for your review in hopes that we can get on the PRC agenda for March 21 and the LCAC agenda for April 9, subject to our Board approval.

We are looking forward to working with you and your team to gain all necessary approvals as quickly as possible and to successfully implement our project by early September.

Project: Building Community at Community Park: Stage BBQ Mural and Renovation Renovate the Stage BBQ area at Community Park and install a mural that reflects the themes of Community (the name of the park) and Inclusion (the spirit of the neighboring Magical Bridge Playground).

Project Scope
The project will involve:
● cleaning, prepping and base color painting of the building ● installation of mural on the large wall located under the roof ● additional artistic embellishments on other walls if budget allows ● installation of gratitude plaque to acknowledge LMH, City of Morgan Hill support, and major donors
● cleaning of concrete flooring, tables, waste bins and BBQ ● picnic tables may also be painted if time and budget allow Specific details on the areas included in the project are as follows:

Area A: Stage BBQ Area Building (includes 5 walls, doors, fascia trim, pillars)- basic scope of project
(1) Clean and prep surfaces
(2) Prime/base coat all areas of structure
(3) Mural on wall 1 (inside wall covered by roof)
(4) Embellishments on outer walls (#2-5) (will depend upon budget)

Area B: Tables - would like to include in scope provided that we have sufficient funds (1) Power wash, remove gum, possible patch/repair?
(2) Paint if funds allow
Area C: Floor - would like to include in scope provided that we have sufficient time and funds
(1) Power wash, remove gum, possible patch/repair?
(2) Possibly paint some decorative embellishments if funds and time allow Area D: Ceiling - We feel that prep and painting of the ceiling is important for a quality project, but have concerns about including this in the scope of the project due to the necessity of lift equipment and the cost possibly exceeding our budgetary restrictions. The project can be completed without any work on the ceiling, but we are in negotiations with the artist to complete this part of the project using a subcontractor, the cost of which would be included in the artist’s fee.

Project Purpose
The Stage BBQ area in Community Park is looking run down and needs enhancement to be a more fitting neighbor to the new and brightly colored Magical Bridge playground. Per Chris Ghione (City of Morgan Hill), the City has identified an immediate need to enhance this area and has discussed looking for a community organization that would be willing to take on the project.

Our classmate Chiquy Mejia (Morgan Hill Recreation Department) had also been seeking enhancements of the area as it is frequently used for events hosted by community members.

The project is about more than painting and a mural– it is about community. Our work will provide an attractive area for residents to enjoy a picnic or host community events. We are committed to bringing people together– engaging the community in funding, providing a space for art that expresses community and inclusion, and celebrating together with the community at an unveiling ceremony. We believe this will inspire others to connect with and serve our community, and will bring positive attention to the Leadership Morgan Hill program.

Project Alignment with City’s Strategic Plan
The project provides a unique opportunity to deepen the City of Morgan Hill’s strategic priorities and plan. As we aim to strengthen the fostering of community at Community Park, this project will bring diverse people together in not only facilitating the project, but also through increased use of the beautified project site. It is a city goal to create and manage a volunteer program for the Magical Bridge Playground in Community Park and it is our hope that with increased awareness through this project we may aid the City in actualizing this ongoing goal.

Furthermore, we are committed to leveraging community engagement and messaging that is

responsive to our communities linguistic diversity — also in alignment with a City priority. We are confident that our project is not only aligned with the City’s Strategic Plan, but it will also create unique opportunities to deepen and extend its impact through the diverse reach of our cohort and LMH community.

Timeline
March 20 Obtain approval from the LMH Board.

March 20 Begin fundraising activities.

March 21 Present project to PRC
March 21 Gain approval of PRC
March 27 Final artist selection with full Class of ‘23
April 9 Present project to LCAC
April 9 Gain approval of LCAC
April 10 Apply for necessary permits
April 10 Begin marketing campaign
May 20 LMH ‘23 on-site work day
August 19 Mural art completed
Sept 9 Grand opening of mural
Artist work days will be scheduled in late May to mid-August (TBD and scheduled around community bookings of the space).

Budget
LMH Class of ‘23 intends to raise $10,000 in donations to cover the expenses of the project. (This is the maximum allowed under the LMH Board regulations.) Additionally, we intend to seek in-kind donations (labor and materials) to increase the total available resources to complete the project, but will ensure that the basic project scope can be completed within the $10K cash limit.

We anticipate the expenses to break down as follows:
$7500- mural expenses (prep, all materials, artist fees) $ 500- marketing and community event
$ 500- fundraising expenses, gratitude plaque
$1500- contingincies

Artist and Art Concept
Our LMH class has been in contact with eight artists and has obtained four bids for the mural project. We have made a preliminary selection of an artist, but before finalizing we are negotiating some details and collaborating on the art concept.

In evaluating the artists’ proposals we have considered the following:

Artist:
1) Artist should be an experienced outdoor muralist with experience painting the types of surfaces we are working with.
2) Artist’s proposed fee should be within our budget and competitively priced. 3) Artist should be knowledgeable about the types of paint, primer and coatings that will result in a beautiful, durable mural that is resistant to the elements and to graffiti. They should be capable of advising us on (or completing themselves) any prep work needed to provide an adequate painting surface.
4) Consider ties that the artist has to the Morgan Hill/South County community. 5) Preference may be given to an artist who has already done work for the City of Morgan Hill. This will expedite approvals due to the artist’s familiarity with requirements and the City’s comfort level based on past relationships.
6) Can also consider: Is the artist representative of our community? Can we amplify an artist from an underrepresented group?
Art:

The following will be considered in choosing the final art for the mural. Is the piece:
1) Appropriate for the type of events the space is used for. (Various types of community gatherings, some impromptu, some booked in advance through the city. Birthday parties, scouting events, memorials/celebrations of life, community group gatherings, family holiday gatherings, etc.)
2) Appropriate considering who uses the space: a wide cross-section of our community– a very broad demographic (age, race, socioeconomic level, gender, etc.) 3) Tied to our themes of COMMUNITY and INCLUSION.
4) Suitably blended into the larger area. We will take into account the view of the mural from the Magical Bridge playground and from the side where the painted utility box is located. Ensure that the mural colors and images tie into these other elements to avoid the area looking too busy and/or disjointed.
5) Achievable within our deadline. Avoid anything overly complex or time consuming that may cause project delays.

6) Visually beautiful, uplifting and an enhancement to the community’s enjoyment of the space.

Pending approval of our Board, we anticipate finalizing the details regarding the artist selection by March 27.

Photos: Stage BBQ Area Currently

Concept Renderings: Mural

Leadership Morgan Hill
Class of 2023
Project Proposal

Renovate the Stage BBQ area at Community Park and install a mural that reflects the themes of Community (the name of the park) and Inclusion (the spirit of the neighboring Magical Bridge Playground).

Building Community at Community Park

Project Scope
● cleaning, prepping and base color painting of the building ● installation of mural (wall 1)
● additional artistic embellishments on other walls and floor ● anti-graffiti coating
● installation of gratitude plaque to acknowledge artist, LMH, City of Morgan Hill, and major donors
● cleaning of area, concrete flooring, tables, waste bins and BBQ
● picnic tables sanded and painted

Selected Artist: Lina Velasquez
● 17 year Morgan Hill Resident
● 12 years as local volunteer
● Many contributions to our community
○ Pop up parks
○ Utility boxes
○ Magical Bridge Playground
○ Youth Action Council
○ Senior Watercolor Class
● Artwork at Bubbles & Brew and Kelly Brewing Company
● Reflects LMH Mission: Inspire, Connect, Serve

Project Budget
❏ $ 7,500 mural expenses (prep, all materials, artist fees) ❏ $ 500 marketing and community event
❏ $ 500 fundraising expenses, gratitude plaque
❏ $ 1,500 contingencies
$ 10,000
● fundraising by LMH Class of 2023
● additional in-kind contributions may allow us to enhance the project or reduce cash fundraising requirements

Stage BBQ Mural Project (Wall 1)

The Tree as a Symbol of Inclusion and Community
● All are welcome to partake in the nourishment, strength, beauty and shade of a tree.
● “Planting trees so that others may enjoy the shade.” → Caring for the future of our community.
● Limbs and branches symbolize the breadth of our community, but also open arms to newcomers and new ideas.
● Feathers as leaves, uniting the elements of the community.

There is little else on Earth that plays host to such a rich community of life within a single living organism.” — Sir David Attenborough

Before After
Building Community at Community Park: Stage BBQ Mural
Mural location: Wall 1

Building Community at Community Park: Stage BBQ Mural
Before After (concept only- not final art)
Location: Wall 2

Mayor Mark Turner: State of the City Address 2023
“Public art enhances communities in several ways. …add(s) character and identity to Morgan Hill …a great addition to our community …reflect(s) our community’s values, history and culture, creating a sense of place for our residents and visitors alike …brings people together”
“Public art can boost our local economy and public art supports local artists”
“Walls can become a canvas for beautiful murals.”
“I believe Morgan Hill can become a premier location in Santa Clara County for public art. …I would challenge our Arts commissioners to communicate a bold plan. Force us to make public art a priority in our community.” Page 426 of 435
Supporting LCAC Goals (2022-23 Work Plan)
● Develop outreach program to the Latinx community
through art programming
● Explore opportunities for youth engagement in arts
● Partner with artist to complete a community mural

Building Community & Art Appreciation
● Marketing will bring public attention to the mural, artist, and the installation process.
● Youth will be invited to a meet-and-greet with the artist, to learn about the art and and see the work-in-process. (Sessions in English and Spanish.)
● Mural will be unveiled at a community celebration which could be an opportunity to promote other arts programs in Morgan Hill.

Proposed Timeline
April 4 Presented project to LCAC & gained approval
April 19 Present project to MH City Council & gain
approval
May 20 Estimated start of on-site work
August 19 Mural art completed
Aug/Sep(TBD) Mural unveiling & on-site community event
Painting times will be scheduled to minimize impact on community (avoiding conflict with other events and limiting weekend work). Page 429 of 435 Our ask:

We seek your approval to move forward
with the
Stage BBQ Area Mural Project

Appendix
Stage BBQ Mural Project

Criteria for Evaluating the Artists’ Proposals

1. Artist should be an experienced outdoor muralist with experience painting the types of surfaces we are working with.

2. Artist’s proposed fee should be within our budget and competitively priced.

3. Artist should be knowledgeable about the types of paint, primer and coatings that will result in a beautiful, durable mural that is resistant to the elements and to graffiti. They should be capable of advising us on (or completing themselves) any prep work needed to provide an adequate painting surface.

4. Consider ties that the artist has to the Morgan Hill/South County community.

5. Preference may be given to an artist who has already done work for the City of Morgan Hill. This will expedite approvals due to the artist’s familiarity with requirements and the City’s comfort level based on past relationships.

6. Can also consider: Is the artist representative of our community? Can we amplify an artist from an underrepresented group?