Agenda packet — Morgan Hill City Council, April 24, 2024 (part 3 of 4)

43 Controlled Equipment Annual Report 2023
The Controlled Equipment Coordinator conducted an inventory check and identified controlled equipment not included in the inventory itemization reported in 2023. The inventory itemization in this report has been corrected to reflect the equipment not previously included.

Complaints
The Morgan Hill Police Department received no citizen complaints about using or possessing military equipment for 2023.

Policy Violations
The Morgan Hill Police Department did not identify any policy violations related to the deployment or use of controlled equipment for 2023.

Conclusion

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44 Controlled Equipment Annual Report 2023
The equipment, resources, and training this report outlines allows the Morgan Hill Police Department to protect our community by enhancing public and officer safety—the use of controlled equipment aids us in resolving critical incidents safely and effectively. Although controlled equipment is utilized infrequently, it must be readily available in rapidly evolving and dynamic situations where such equipment can be used effectively in our response to public safety threats.

When deciding how controlled equipment is funded, acquired, or used, the Morgan Hill Police Department considers the public's welfare, safety, and civil liberties. This annual military equipment report reaffirms the Department's commitment to transparency and providing information to our community and ensuring compliance with the law.

The Department welcomes meaningful public input regarding the use of controlled equipment to keep our community safe. Inquiries, complaints, or concerns can be submitted to the Morgan Hill Police Department's Controlled Equipment Coordinator via email at [email protected] Visit our website for more information: www.morganhill.ca.gov/129/police Appendix

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45 Controlled Equipment Annual Report 2023
Definitions

1. Governing Body- The legislative body of the City of Morgan Hill.

2. Controlled Equipment- Includes items defined by California Government Code section 7070, subsections (c)(1) through (c)(16).

3. "Military Equipment Impact Statement" means a publicly released, written document that includes, at a minimum, all of the following:
(a) Description: A description of each type of Controlled Equipment, the quantity sought, its capabilities, expected lifespan, intended uses and effects, and how it works, including product descriptions from the manufacturer of the Controlled Equipment. (b) Purpose: The purposes and reasons for which the Morgan Hill Police Department (hereinafter, "Police Department") proposes to use each type of Controlled Equipment. (c) Fiscal Cost: The fiscal cost of each type of Controlled Equipment, including the initial costs of obtaining the equipment, the estimated or anticipated costs of each proposed use, the estimated or anticipated costs of potential adverse impacts, and the estimated or anticipated annual, ongoing costs of the equipment, including operating, training, transportation, storage, maintenance, and upgrade costs.
(d) Impact: An assessment specifically identifying any potential impacts that the use of Military Equipment might have on the welfare, safety, civil rights, and civil liberties of the public and what specific affirmative measures will be implemented to safeguard the public from potential adverse impacts.
(e) Mitigations: Specific, affirmative technical and procedural measures that will be implemented to safeguard the public from such impacts.
(f) Alternatives: Alternative methods or methods by which the Police Department can accomplish the purposes for which the Military Equipment is proposed to be used, the annual costs of alternative method or methods, and the potential impacts of alternative method or methods on the welfare, safety, civil rights, and civil liberties of the public.

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8 CITY COUNCIL STAFF REPORT
MEETING DATE: April 24, 2024
PREPARED BY:

Inga Alonzo, Management Analyst
APPROVED BY: City Manager

APPROVE THE PURCHASE OF CLA-VALVE REPAIR AND REBUILD
KITS IN THE AMOUNT OF $103,718 FROM ICONIX WATERWORKS

RECOMMENDATION(S)
Approve and authorize the City Manager to execute a purchase order to Iconix Waterworks in the amount of $103,718 for the purchase of Cla-Valve repair and rebuild kits for repairs to the City’s water infrastructure.

COUNCIL PRIORITIES, GOALS & STRATEGIES
City Council Ongoing Priorities
Enhancing Public Safety
Maintaining and Enhancing Infrastructure
2024-2025 Strategic Priorities
Fiscal Sustainability
Guiding Documents
Public Safety Master Plan
Water System Master Plan
REPORT NARRATIVE:

The City of Morgan Hill’s Utilities Division needs to purchase rebuild and repair kits to perform needed valve repairs on its water infrastructure. These kits have been hard to come by in the past couple of years due to material and supply shortages. Last year, very little repair work was achieved because of the inability to obtain these kits. These shortages have also caused prices to increase, especially on the largest valve sizes.

An Invitation to Bid was posted in February 2024 to obtain pricing on Cla-Valve repair and rebuild kits. The bid was advertised in the Morgan Hill Times and was posted to the City’s website. It was also emailed to multiple vendors that staff has purchased this type of equipment from previously. Four bids were received. Bid results are as follows:

Bidder Iconix
Waterworks
Technology
International
Taza Supplies Ferguson
Enterprises
Bid Amount $103,718.19 $98,140.61 $193,290.00 $108,752.91

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8 Lead Time 5-7 Days 20 Weeks 6-7 Weeks Not Stated
Although the bid from Technology International came in at the lowest dollar amount, the lead time to acquire the parts is excessive at 20 weeks. Staff have scheduled repairs for the months of May and June. It is not recommended to postpone these repairs any longer. Thus, staff believes it is in the best interest of the City to award this bid to the second-lowest bidder, Iconix Waterworks, which has a lead time of approximately one week on these kits.

COMMUNITY ENGAGEMENT:

COMMUNITY ENGAGEMENT: None
The purchase of materials for the Utilities Division is a necessary function to support the operations of the City and therefore no community engagement was performed.

ALTERNATIVE ACTIONS:

The City Council could choose to award to the lowest bidder. This would delay repairs by about five more months. This is not recommended because repairs have already been delayed due to lack of product which has compromised timely repair of critical infrastructure.

PRIOR CITY COUNCIL AND COMMISSION ACTIONS:

There have been no prior Council actions.

FISCAL AND RESOURCE IMPACT:

Funds for this purchase are budgeted in water operations (Fund 650).

CEQA (California Environmental Quality Act):

Categorical Exemption
This purchase is Categorically Exempt pursuant to Section 15301 of CEQA Guidelines because the materials being purchased are for repair of existing infrastructure involving no expansion of existing use.

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4 THIS PAGE MUST BE SUBMITTED WITH BID
City of Morgan Hill
BID
Cla-Valve Kits
______________________________________________________ (“Contractor”) hereby submits this Bid to the City of Morgan Hill (“City”) for an Cla-Valve Kits (“Project”) in response to the Invitation for Bids and in accordance with the documents referenced therein.

1. Bid Proposal. Contractor proposes and will provide, if awarded, Cla-Valve Kits per the specifications laid out in the Invitation for Bid documents herein.

2. Addenda. Contractor acknowledges receipt of the following addenda:

Addendum: Date Received:
#01 _____________
#02 _____________
#03 _____________

3. Bid Warranties. By signing and submitting this Bid, Contractor warrants the following:

3.1 Contractor has thoroughly examined the Bid Documents, and represents that, to the best of Contractor’s knowledge there are no errors, omissions, or discrepancies in the Bid Documents.

3.2 Contractor is fully qualified to perform the Work.

3.3 Contractor has carefully reviewed this Invitation to Bid and is solely responsible for any errors or omissions contained in their completed Proposal.

This Bid is hereby submitted on _______________________________, 20___________:
____________________________________________________________________________ Company Name Contact Phone Contact Email

____________________________________________________________________________ Address City State Zip

____________________________________________________________________________ Authorized Signature Name and Title [print]
Rich Arellano Operations Manager

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5 THIS PAGE MUST BE SUBMITTED WITH BID

BID PROPOSAL
Please supply a bid price for the following items. Include Sales Tax and any delivery and freight charges. You must bid on all items, or your bid will not be accepted. Please attach any warranty information to this bid.

Quantity Size Style Part # Each Total
1 ea 2" Hytrol #1 Rubber Kit 9169805A
1 ea 4" Hytrol #1 Rubber Kit 9169813E
4 ea 6" Hytrol #1 Rubber Kit 9169815K
2 ea 8" Hytrol #1 Rubber Kit 9817901D
1 ea 2" Hytrol #2 Repair Kit 21176608K
1 ea 4" Hytrol #2 Repair Kit 21176605C
2 ea 2" Hytrol #3 Rebuild Kit 21176618H
4 ea 6" Hytrol #3 Rebuild Kit 21176622B
3 ea 8" Hytrol #3 Rebuild Kit 21176623A
8 ea 10" Hytrol #3 Rebuild Kit 21176654C
2 ea 3" Powertrol #2 Repair Kit 21411503G
4 ea 4" Powertrol #2 Repair Kit 21411504F
4 ea 6" Powertrol #2 Repair Kit 21411505E
Subtotal
Sales Tax
Delivery & freight
Total
Lead Time 5-7 Days

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6 THIS PAGE MUST BE SUBMITTED WITH BID
Non-Collusion Declaration
(To be executed by Contractor and submitted with bid)
The undersigned declares:

I am the __________________________ [title] of _____________________________[business name], the party making the foregoing bid.

The bid is not made in the interest of, or on behalf of, any undisclosed person, partnership, company, association, organization, or corporation. The bid is genuine and not collusive or sham. The Contractor has not directly or indirectly induced or solicited any other Contractor to put in a false or sham bid. The Contractor has not directly or indirectly colluded, conspired, connived, or agreed with any Contractor or anyone else to put in a sham bid, or to refrain from bidding. The Contractor has not in any manner, directly or indirectly, sought by agreement, communication, or conference with anyone to fix the bid price of the Contractor or any other Contractor, or to fix any overhead, profit, or cost element of the bid price, or of that of any other Contractor. All statements contained in the bid are true. The Contractor has not, directly, or indirectly, submitted his or her bid price or any breakdown thereof, or the contents thereof, or divulged information or data relative thereto, to any corporation, partnership, company, association, organization, bid depository, or to any member or agent thereof, to effectuate a collusive or sham bid, and has no paid and will not pay, any person or entity for such purpose.

This declaration is intended to comply with California Public Contract Code Section 7106 and Title 23 U.S.C Section 112.

I declare under penalty of perjury under the laws of the State of California that the foregoing is true and
correct, and that this declaration is executed on ____________________ [date], at ____________________________________ [city], _________________ [state]. __________________________________________
Signature
________________________________________
Name [print]
Santa Clara Operations Manager
Rich Arellano

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City Council
Meeting Minutes
Mark Turner - Mayor
Marilyn Librers - Mayor Pro Tem
Gino Borgioli - Council Member
Rene Spring - Council Member
Yvonne Martinez Beltran - Council Member
Wednesday, March 6, 2024 6:00 PM
Council Chamber Building
17555 Peak Avenue, Morgan Hill, CA 95037

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March 6, 2024
2 CALL TO ORDER
Mayor Turner called the City Council meeting to order at 6:00 p.m.

ROLL CALL ATTENDANCE
Deputy City Clerk Kim Mancera called the roll.

PRESENT Rene Spring, Gino Borgioli, Yvonne Martinez Beltran, Mark Turner, Marilyn Librers
ABSENT None

DECLARATION OF POSTING AGENDA
Deputy City Clerk Kim Mancera declared the posting of the agenda.

SILENT INVOCATION

PLEDGE OF ALLEGIANCE

PRESENTATIONS
YAC Presentation
League of California Cities, California Business Roundtable (CBRT) measure

RECOGNITIONS
Recognizing the 2023 STEM winner Sharanya Chudgar

PROCLAMATIONS
Proclaiming March 31, 2024 as Cesar Chavez Day
Proclaiming the month of March 2024 as Women's History Month Proclaiming the month of March 2024 as Youth Arts Month

CITY COUNCIL REPORTS
Council Member Martinez Beltran shared that on February 28, 2024, she attended the

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March 6, 2024
3 League of California Cities Latino Caucus meeting. She attended the Silicon Valley Clean Energy executive meeting as well as the Joint Venture Silicon Valley Annual State of the Valley. She shared that the California Business Roundtable (CBRT) event will be on May 22, 2024. She wished everyone a happy Cesar Chavez Day and Women's History Month.

CITY MANAGER'S REPORT
City Manager Christina Turner announced that Assistant City Manager Edith Ramirez is the recipient of the 2024 Latinx Business Leadership Award. To help celebrate her recognition, our Economic Development Team is using this opportunity to highlight many amazing Hispanic owned businesses and Latinx employees in Morgan Hill. If you are a business owner who would like to recognize a local Latinex business leader at your company, please reach out to Brittney Sherman or Matt Mahood. She announced that summer activities are coming soon. On Friday, March 22, 2024 the summer recreation guide will be posted on the website. On April 2, 2024 our new online registration system will be active. On April 9, 2024 registration for our summer camps and programs begin and on April 11, 2024 registration for swim classes will commence.

On Wednesday, March 13, 2024 is the Mayor's State of the City address at 6:30 p.m. at the Morgan Hill Community Playhouse. In addition on March 31, 2024 is the opening game for the Panthers at SAP Center.

CITY ATTORNEY'S REPORT
No report.

OTHER REPORTS
None.

PUBLIC COMMENT
Public comment opened at 6:29 p.m. The following person was called to speak:

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

ADOPTION OF AGENDA
MOTION:

Move item 8.2 in front of item 8.1.

RESULT: Passed
MOVER: Council Member Martinez Beltran
SECONDER: Council Member Spring
AYES: Council Member Spring, Council Member Martinez Beltran, Mayor Turner, Mayor Pro Tem Librers

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March 6, 2024
4 NAYS: Council Member Borgioli
ABSTAIN: None
ABSENT: None
MOTION:

Move item 8 to right after the consent calendar.

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

Adopting the agenda.

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

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

MOTION:

Approving the consent calendar.

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March 6, 2024
5 RESULT: Passed
MOVER: Council Member Borgioli
SECONDER: Council Member Martinez Beltran
AYES: Council Member Spring, Council Member Borgioli, Council Member Martinez Beltran, Mayor Turner, Mayor Pro Tem Librers
NAYS: None
ABSTAIN: None
ABSENT: None

1. APPROVE THE FEBRUARY 2, 2024 AND FEBRUARY 3, 2024 ANNUAL GOAL SETTING WORKSHOP MINUTES AND THE FEBRUARY 21, 2024 CITY

COUNCIL MEETING MINUTES
Recommendation:

Approve minutes.

2. AUTHORIZE THE CITY MANAGER TO EXECUTE A CHANGE ORDER TO EDWARD R. BACON COMPANY IN THE AMOUNT OF $156,661 INCLUDING 10% CONTINGENCY FOR THE PURCHASE AND INSTALLATION OF

REPLACEMENT GENERATORS AT THE CITY FIRE STATIONS
Recommendation:

Authorize the City Manager to execute a change order to Edward R. Bacon, in the amount of $156,661, for the purchase and installation of two generators at the Morgan Hill Fire Stations.

3. RECEIVE MONTHLY BUDGET UPDATE AND JANUARY 2024 FINANCIAL

AND INVESTMENT REPORTS
Recommendation:

Accept and file report.

4. RESCIND AWARD OF COMMUNITY PARK DG PATHWAYS PROJECT AND

AWARD TO NEXT LOWEST BIDDER
Recommendation:

1. Rescind Award of Decomposed Granite (DG) Pathways Project to Angkor Engineering, Inc. in the amount of $51,825 and contingency funds not to exceed $25,913; and

2. Award DG Pathways Project to Always Paving, Inc. in the amount of $56,100 and contingency funds not to exceed $28,050; and

3. Authorize the City Manager to execute and administer that certain

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March 6, 2024
6 construction contract with Always Paving, Inc.

OTHER BUSINESS ITEM MOVED

8. PROVIDE DIRECTION TO STAFF ON PROPOSED FUTURE COUNCIL

INITIATED AGENDA ITEMS
Recommendation:

Determine if the majority of the City Council wants the following items agendized at a future meeting for discussion:

1. Consider a resolution for sustainable peace to end the war and the loss of life in Israel and Palestine; and

2. Consider continuing the discussion on remote public comments.

Item 8.2
City Manager Christina Turner introduced the items and Council Member Martinez Beltran provided a report.

Public comment opened at 6:42 p.m. The following people were called to speak:

Kamila
Anonymous
Anonymous
Anonymous
Armando Benavides
Aziz
Art Cohen
Arik
Anonymous
Rita Gutierrez-Gisher
There being no further requests to speak, public comment closed.

No action taken. This item will be added to a future meeting agenda.

Item 8.1
City Manager Christina Turner introduced the items and Council Member Martinez Beltran provided a report.

Public comment opened at 7:09 p.m. The following people were called to speak:

Nuzi
Aamin
Noshaba A.

Zain
Dina

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March 6, 2024
7 Omar
Kamila
Vsman
Dima
Saima
Alfiya
Amina
Salam
Ismail
Naz K.

Mohammed
Rita
Bashera
Sarit
Vered
Iloch
Ronnit
Ido Waissman
Ronda A.

Dee H.

Dima
Aziz
Yousuff
Zain Y.

Rabbi Faith Joy Dantowitz
Shahla Khan
Debbie Israel
Sal A.

Kassel
Aaron Jarson
Rabbi Mendel Liberow
Avi
Gabby
Hina
Marby Lee
Rick
Donna
Nadine
Cohava
Arik P.

Shlomit
Mayrav
Yigal
Peter
Natalie Brisbin
Elizabeth Mandel
Anna Stepahenko
Mirian Buzi

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March 6, 2024
8 Sophia Khalifa
Inga Pevchin
Edgardo Laber
Dorah Rosen
Wendy Greenfield
Public comment closed.

No action taken.

The meeting recessed at 8:32 p.m. and reconvened at 8:47 p.m.

PUBLIC HEARINGS

5. INTRODUCE ORDINANCE (ZA2023-0001) AMENDING VARIOUS CODE PROVISIONS WITHIN TITLE 18 (ZONING) OF THE MUNICIPAL CODE OF

THE CITY OF MORGAN HILL IMPLEMENTING THE CITY OF MORGAN HILL 2023-2031 HOUSING ELEMENT; UPDATES TO ELECTRIC VEHICLE

CHARGING PROVISIONS TO PROVIDE CONSISTENCY WITH CHAPTER

15.62 (ELECTRIC VEHICLE CHARGING INFRASTRUCTURE); UPDATES TO PARKING PROVISIONS TO COMPLY WITH ASSEMBLY BILL 894; AND

IMPLEMENTING MINOR AMENDMENTS DUE TO CLERICAL ERRORS AND

INCONSISTENCIES
Recommendation:

1. Open/close the public hearing;

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

3. Introduce Ordinance Amendment.

Principal Planner Adam Paszkowski provided a presentation and report.

The public hearing opened at 9:03 p.m. There being no requests to speak, the public hearing closed.

MOTION:

Waiving the first and second reading of the ordinance.

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

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March 6, 2024
9 MOTION:

Introducing the ordinance.

OTHER BUSINESS

6. ADOPT AN AMENDED RESOLUTION FOR AN EXCEPTION TO THE 180-DAY

WAITING PERIOD TO HIRE A RETIRED ANNUITANT, ANDREW CRABTREE,

TO SERVE AS A TEMPORARY EXTRA HELP EMPLOYEE (GOVERNMENT CODE SECTIONS 7522.56 AND 21224) IN THE DEVELOPMENT SERVICES

DEPARTMENT
Recommendation:

Adopt an amended Resolution for an exception to the 180-day waiting period to appoint Andrew Crabtree, a retired annuitant, to serve as temporary extra help (Government Code Sections 7522.56 and 21224).

Human Resources Director Michael Horta provided a report.

Public comment opened at 9:07 p.m. There being no requests to speak, public comment closed.

MOTION:

Approving the recommended action.

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March 6, 2024
10 ABSENT: None

7. ADOPT RESOLUTION OF INTENTION AND INTRODUCTION OF

ORDINANCE TO AMEND THE CONTRACT BETWEEN THE BOARD OF
ADMINISTRATION OF THE CALIFORNIA PUBLIC EMPLOYEES’

RETIREMENT SYSTEM (CALPERS) AND THE CITY OF MORGAN HILL TO

IMPLEMENT MILITARY SERVICE CREDIT AS PUBLIC SERVICE IN
ACCORDANCE WITH SECTION 21024 OF THE CALIFORNIA GOVERNMENT CODE
Recommendation:

1. Adopt Resolution of Intention of the City Council of the City of Morgan Hill stating its intent to amend the contract between the California Public Employees' Retirement System (CalPERS) and the City of Morgan Hill in order to implement Military Service Credit as Public Service in accordance with California Government Code section 21024;

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

3. Introduce ordinance by title
Human Resources Director Michael Horta provided a report.

Public comment opened at 9:08 pm. There being no requests to speak, public comment closed.

MOTION:

Adopting the resolution.

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

FUTURE COUNCIL INITIATED AGENDA ITEMS
Council Member Martinez Beltran would like to review policy 97-01 4.2, City Council Future Initiated Agenda Items.

CLOSED SESSION
City Attorney Donald Larkin announced the closed session item.

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March 6, 2024
11 Conference with Legal Counsel – Existing Litigation (§ 54956.9) Serna v. City of Morgan Hill (Santa Clara County Case No. 23CV409430)

OPPORTUNITY FOR PUBLIC COMMENT
Public comment opened at 9:14 pm. There being no requests to speak, public comment closed.

The meeting adjourned to closed session at 9:19 p.m.

ADJOURNMENT
There being no further business, Mayor Turner adjourned the meeting at 9:30 p.m.

Minutes Prepared by:

Kim Mancera, Deputy City Clerk

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10 CITY COUNCIL STAFF REPORT
MEETING DATE: April 24, 2024
PREPARED BY:

Kristian Wallace, Associate Engineer
APPROVED BY: City Manager

AWARD CONDIT SEWER CAPACITY UPGRADE PROJECT TO
SUBTERRA CONSTRUCTION, INC. IN THE AMOUNT OF $1,824,097

RECOMMENDATION(S)

1. Approve the Condit Sewer Capacity Upgrade Project Plans and Specification;

2. Award contract to SubTerra Construction Inc. for the Condit Sewer Capacity Upgrade Project in the amount of $1,824,097;

3. Authorize expenditure of construction contingency funds not to exceed $364,820; and

4. Authorize the City Manager to execute and administer the construction contract with SubTerra Construction, Inc.

COUNCIL PRIORITIES, GOALS & STRATEGIES
City Council Ongoing Priorities
Enhancing Public Safety and Quality of Life
Maintaining and Enhancing Infrastructure
2024-2025 Strategic Priorities
Fiscal Sustainability
Guiding Documents
Wastewater System Master Plan
REPORT NARRATIVE:

The 2017 Sanitary Sewer Master Plan identifies a capacity project to upsize the sewer siphon that runs under Highway 101 at East Dunne Avenue. Due to the complexities of completing this project from an engineering, permitting and traffic control perspective, the City and planning consultant staff evaluated other options to achieve the needed capacity improvements. In 2022, Amendment 1 to the 2017 Sanitary Sewer Master Plan was prepared to evaluate the routing of sewer flows from projects along Half Road to the East Dunne Trunk Line as well as the possibility of routing flows from the undersized siphon at the E. Dunne crossing under Highway 101 to the larger siphon crossing at Barrett Avenue. The Sanitary Sewer Amendment recommended a 12” sanitary sewer main be installed along Condit Road between East Dunne Avenue and Barrett Avenue

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10 to provide system reliability and redundancy in the event of an emergency shutdown of the East Dunne siphon. This project will eliminate the need to upsize the siphon underneath Highway 101 at Dunne Avenue.

The Condit Sewer Capacity Upgrade Project will remove and abandon the existing 10" sewer main along Condit Road and redirect flow through the installation of approximately 3,400 linear feet of 12" sewer main along Condit Road from East Dunne Avenue to Barrett Avenue. Staff began design of the Condit Sewer Capacity Upgrade Project in March 2023 and the plans and specifications were completed and approved in February 2024. The project was advertised on March 1, 2024 and a bid opening was held on March 27, 2024. The bid results are as follows:

Bidder Base Bid
SubTerra Construction Inc. $ 1,824,097.00
Pacific Underground Construction, Inc. $ 1,967,832.00
Precision Engineering $ 1,982,869.00
Manzo Construction $ 2,013,249.43*
Golden Bay Construction, Inc. $ 2,141,417.00
Devaney Engineering, Inc. $ 2,390,357.00*
Monterey Peninsula Engineering $ 2,568,332.00
Cratus, Inc. $ 2,770,664.00
*The construction base bid total was corrected due to calculation error.

The bid proposals received were structured such that the base bid was the lowest responsible bidder. The lowest responsible bidder was SubTerra Construction Inc. with a base bid of $1,824,097. SubTerra Construction Inc.’s bid was approximately 16.91% lower than the Engineer’s estimate of $2,195,337. SubTerra Construction is an experienced contractor and has the necessary qualifications to do this project. SubTerra Construction has previously completed work for the City on the Jackson Oaks Water Main Project. Staff recommends the award of the contract to SubTerra Construction Inc. in the amount of $1,824,097 with a 20% contingency for this project. A larger contingency is included to support unknown conditions and the potential for related repair work for other system pipes. The project is scheduled to begin in May 2024 and be completed by December 2024, assuming no significant delays.

The plans and specifications are available for review on the City’s webpage.

COMMUNITY ENGAGEMENT:

During and ahead of construction, staff will inform the community regarding the progress of this project using media, social media, and the City's website. Additionally, staff will coordinate with the Morgan Hill Aquatic Center and Outdoor Sports Park for

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10 additional noticing in the facilities due to the proximity of construction activity to the facilities.

ALTERNATIVE ACTIONS:

City Council may elect not to award this construction contract and direct staff to re-bid the project in hopes of obtaining a lower bid proposal. Staff does not recommend this alternative as competitive bids were received. Rebidding the project is not likely to result in significant savings and it will delay the project by a minimum of four months.

PRIOR CITY COUNCIL AND COMMISSION ACTIONS:

October 18, 2017 - Adopted Sanitary Sewer Master Plan
June 15, 2022 - Adopted Fiscal Year 2022-23 through 2027-28 Capital Improvement Program Budget which identifies funding for the proposed sewer projects through developer impact fees.

FISCAL AND RESOURCE IMPACT:

If approved, the total authorization of this project shall be $2,188,917. The contract amount for the portion of this project with SubTerra Construction, Inc. is $1,824,097.

Additionally, staff is requesting an authorization of 20% construction contingency of $364,820, for a total of $2,188,917 for the construction portion. There are adequate funds appropriated and available to fund this project within Sewer Impact Fee Fund 641 and Sewer Capital Project Fund 643.

CEQA (California Environmental Quality Act):

Categorically Exempt.

The proposed improvements of the Condit Sewer Capacity Upgrade Project are categorically exempt CEQA under Section 15302 (c) Replacement or Reconstruction of Existing Utilities and Section 15303 (d) New Construction or Conversion of Small Structures, as the subject work involves the removal and replacement of a sewer main within an existing paved roadway to eliminate a flow deficiency.

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101U S 101U S
E Dunne Ave Butterfield Blvd
Butterfield Blvd
Tennant Ave
Monterey Rd
E Dunne Ave
San Pedro Ave
Barrett Ave
San Pedro Ave
E Main Ave
Diana Ave
Condit Rd
Condit Rd
Murphy Ave
Murphy Ave
North
Project Location
N:\PROJECTS\CIP\SEWER\WW3009 - Condit Road Sewer Diversion Project\CAD\Vicinity Map Exhibit for Staff Report.dwg - 4/2/2024 3:17 PM - Plotted 4/2/2024 3:54 PM by Kristian Wallace SCALE: SHEET DRAWN BY: of JOB #: DATE:

Xrefs: 2D New; 2d existing; Vicinity Map; Hatch New C M H ITY OF ORGAN ILL City of Morgan Hill Engineering & Utilities 17575 Peak Ave. Morgan Hill, CA 95037 Phone: (408) 776-6480 Fax: (408) 779-7236 1 1 WW3009 KW 4/2/24 Vicinity Map Condit Sewer Capacity Upgrade Project

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11 CITY COUNCIL STAFF REPORT
MEETING DATE: April 24, 2024
PREPARED BY:

Keri Russell, Maintenance Manager
APPROVED BY: City Manager

INITIATE ANNUAL ASSESSMENT PROCESS FOR LANDSCAPE
ASSESSMENT DISTRICT NUMBER 1

RECOMMENDATION(S)

1. Initiate the proceedings for the levy of assessments for Fiscal Year 2024-25;

2. Approve the Engineer’s Annual Report and the proposed assessment levy; and

3. Declare the City Council’s intention to levy the assessments in the District and to set the Public Hearing date for June 5, 2024.

COUNCIL PRIORITIES, GOALS & STRATEGIES
City Council Ongoing Priorities
Maintaining and Enhancing Infrastructure
2024-2025 Strategic Priorities
Fiscal Sustainability
REPORT NARRATIVE:

Landscape Assessment District No. 1 (District) was created to pay for the maintenance of the parks and common area landscaping in new neighborhoods benefiting from the open space. Per Government Code Sections 22623 to 22631, an Engineer's Annual Report (Attachment 1) is required to set the annual assessments in the Landscaping Assessment District and establish a Public Hearing date. This Public Hearing date has been scheduled for the City Council meeting on June 5, 2024.

In May 2011, reserve targets for each subarea were recommended and approved by the Council. Due to inflation costs, especially over the last several years, City Staff are recommending doubling the reserve targets for each subarea. By doubling the reserve targets, the subareas will have a higher fund balance to support inflationary costs, maintenance repairs, and/or general improvements to the district. If approved, City Staff would work to gradually increase each subareas’ reserve to avoid drastic assessment fee increases and, for many subareas, assessment increases would be required to be approved by residents through a vote.

The recommended assessment rate for each subarea, which is reflected in the Annual

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11 Report, has been proposed at a level that will enable the City to maintain each subarea and make reasonable improvements during the fiscal year. The Engineer's Annual Report details the proposed Fiscal Year 2024-25 assessments. Sparhawk subarea is in the process of a Proposition 218 ballot proceeding. If the rate per unit increase is approved by property owners and the City Council, the Supplemental Engineer’s Report, Resolutions and necessary documentation used as part of the Proposition 218 ballot procedure will supersede the existing assessment. If the proposed Sparhawk subarea increase is not approved, the existing Sparhawk subarea assessment shall remain in place as shown in the Engineer's Report.

In the case of multiple subareas where the assessment cap does not increase annually, and funding is limited, maintenance services continue to be minimized. The Landscape Assessment District law requires property owners in these areas to vote to improve assessment increases. In some cases, property owners are not willing to increase their assessments. Staff will continue to look for alternatives to effectively manage the District and plans to engage residents in many of the underfunded sub-areas over the next year to look for solutions.

COMMUNITY ENGAGEMENT:

Ongoing resident outreach is occurring in several of the subareas and City staff are striving to increase the resident outreach. Some areas have more active homeowners groups that work with City staff in planning maintenance projects for their subareas, while residents of other subareas are less engaged. In recent years, City staff have successfully out reached to several areas. We are closely working with active districts on the ongoing maintenance and budget for their district. Although outreach with residents is typically positive, not all residents are satisfied with the service being provided within their subarea. This dissatisfaction is often due to the limitations of funding available to the subarea without the associated increase in assessments levied.

Staff have had a resident meeting with Sparhawk and those residents in attendance were in favor of raising the maximum assessment. Official ballots were mailed to Sparhawk owners with the ballot tabulation occurring at the April 24, 2024 Council Meeting.

ALTERNATIVE ACTIONS:

There is no other practical alternative action. The City Council could choose to provide staff with further direction on management of the District.

PRIOR CITY COUNCIL AND COMMISSION ACTIONS:

In 1991, the City Council, under the Landscaping and Lighting Act of 1972, created the Fox Hollow/Murphy Springs Landscape Assessment District, and in 2010 chose to rename it to the City of Morgan Hill Landscape Assessment District No. 1. In May 2011, reserve targets for each subarea were established by the Council.

The City Council adopts the annual assessments and the ordering of the levy for assessments for the District each year. This occurred most recently on June 7, 2023.

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11 FISCAL AND RESOURCE IMPACT:

The cost for preparation of the Engineer's Annual Report will be paid for by the Landscape Assessment District Fund (229). It is anticipated that the District will generate $203,074 in revenues in Fiscal Year 2024-25. Expenses are budgeted at $208,679 meaning that overall; the District's reserves are projected to be reduced by $5,605 in the upcoming fiscal year. Providing administrative oversight to the District is a core activity of the Public Services Department's work program.

CEQA (California Environmental Quality Act):

Categorical Exemption
The planned maintenance and management of the subareas within the lighting and landscape assessment district fall within the CEQA categorical exemption of Class 1, Existing Facilities.

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nbsgov.com
Prepared by:

Corporate Headquarters
32605 Temecula Parkway, Suite 100
Temecula, CA 92592
Toll free: 800.676.7516
Fiscal Year 2024/25 Engineer’s Report For:

Landscape Assessment District No. 1
April 2024

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CITY OF MORGAN HILL
17575 Peak Avenue
Morgan Hill, CA 95037-4128
Phone: (408) 779-7271
Fax: (408) 778-1564

CITY COUNCIL
Mark Turner, Mayor
Marilyn Librers, Mayor Pro Tem
Gino Borgioli, Council Member
Rene Spring, Council Member
Yvonne Martinez Beltran, Council Member

CITY STAFF
Christina Turner, City Manager
Chris Ghione, Public Services Director
Dat Nguyen, Finance Director
Keri Russell, Maintenance Manager
NBS
Melissa Ellico, Administrator
Darrylanne Zarate, Project Manager
Greg Davidson, Client Service Director

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TABLE OF CONTENTS

1. Executive Summary ........................................................................................................ 1

2. Overview ........................................................................................................................ 3

2.1 Introduction .............................................................................................................. 3

2.2 Description of Boundaries ........................................................................................ 3

2.3 Description of Improvements and Services .............................................................. 3

3. Estimate of Costs ............................................................................................................ 4

3.1 Definitions of Budget Items ...................................................................................... 4

3.2 Zone Budgets ............................................................................................................ 5

4. Assessments ................................................................................................................... 6

4.1 Method of Apportionment ....................................................................................... 6

4.2 Belle Estates Zone ..................................................................................................... 6

4.3 Chang/Bertelone Zone .............................................................................................. 7

4.4 Conte Gardens Zone ................................................................................................. 7

4.5 Diana Estates Zone.................................................................................................... 8

4.6 Fox Hollow/Murphy Springs Zone ............................................................................ 8

4.7 Hamilton Square Zone .............................................................................................. 9

4.8 Jackson Meadows 6A/6B Zone ................................................................................. 9

4.9 Jackson Meadows Number 7 Zone ......................................................................... 10

4.10 La Grande Estates Zone .......................................................................................... 10

4.11 Lacrosse/Gera Zone ................................................................................................ 10

4.12 Llagas Creek Estates Zone ....................................................................................... 11

4.13 Llagas/Obata Zone .................................................................................................. 11

4.14 Mill Creek Zone ....................................................................................................... 12

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4.15 Oak Creek I, II, III ..................................................................................................... 12

4.16 Parsons Corner Zone ............................................................................................... 13

4.17 Rose Haven Zone .................................................................................................... 13

4.18 Sandalwood Zone ................................................................................................... 13

4.19 Sparhawk Zone ....................................................................................................... 14

4.20 Stone Creek Zone .................................................................................................... 15

4.21 Sunnyside/Stone Gate Zone ................................................................................... 15

5. Assessment Diagrams ................................................................................................... 16

6. Assessment Roll ............................................................................................................ 17

7. Historical Assessment Rates .......................................................................................... 18

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City of Morgan Hill Landscape Assessment District No. 1 Engineer’s Report Fiscal Year 2024/25 1

1. EXECUTIVE SUMMARY
WHEREAS, the City Council of the City of Morgan Hill (the “City”), State of California, directed NBS to prepare and file a report, in accordance with Chapter 1, Article 4 of the Landscaping and Lighting Act of 1972 (the “Act”), presenting the plans and specifications describing the general nature, location and extent of the improvements to be maintained, an estimate of the costs of the maintenance, operations and servicing of the improvements for the City’s Landscape Assessment District No. 1 (the “District”) for Fiscal Year 2024/25. The report includes a diagram for the District, showing the area and properties proposed to be assessed, an assessment of the estimated costs of the maintenance, operations and servicing the improvements, and the net amount upon all assessable lots and/or parcels within the District in proportion to the special benefit received and;
WHEREAS, the assessment for each parcel is in compliance with the Proposition 218 Omnibus Implementation Act and Section 4 of Article XIII D of the California Constitution. The proposed assessments are not proposed to increase by more than the approved maximum allowable increases.

NOW THEREFORE, assessments have been levied in accordance with the assessment methodology adopted and approved by the City Council at the time of District formation, and are made to cover the portion of the estimated costs of maintenance, operation, and servicing of the improvements, to be paid by the assessable real property within the District in proportion to the special benefit received:

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City of Morgan Hill Landscape Assessment District No. 1 Engineer’s Report Fiscal Year 2024/25 2
Zone Units
FY 2024/25
Maximum
Assessment Rate
FY 2024/25
Actual
Assessment Rate
Total
Assessment (1)
Belle Estates 36 $502.22 $310.00 $11,160.00
Chang/Bertelone 8 1,215.00 550.00 4,400.00
Conte Gardens 11 477.82 365.00 4,015.00
Diana Estates 64 139.39 139.39 8,920.96
Fox Hollow (2) 75 247.41 173.53 13,014.75
Hamilton Square 38 425.54 425.00 16,150.00
Jackson Meadows #6 70 108.10 108.00 7,560.00
Jackson Meadows #7 10 314.58 100.00 1,000.00
La Grande Estates 32 88.00 88.00 2,816.00
Lacrosse/Gera 24 142.99 50.00 1,200.00
Llagas Creek (2) 71 333.16 233.67 16,590.57
Llagas/Obata 5 629.16 450.00 2,250.00
Mill Creek (2,4) 84 320.77 285.00 23,940.00
Oak Creek I, II, III 119 453.82 425.00 50,575.00
Parsons Corner(3) NOT APPLICABLE
Rose Haven 27 488.47 400.00 10,800.00
Sandalwood (4) 11 450.00 450.00 4,950.00
Sparhawk (2) (5) 18 354.76 354.76 6,385.68
Stone Creek (2) 35 553.86 388.46 13,596.10
Sunnyside/Stonegate (2) 10 811.66 375.00 3,750.00
Totals: 748 $203,074.06
(1) Actual amount placed on secured tax roll may be less due to Santa Clara County submittal requirements. Amounts placed on the tax roll must be rounded down to an even number. (2) Maximum Assessment Rate increases by 3% annually.
(3) Detachment of Parsons Corner Zone was approved in April 2019. (4) Includes increased maximum assessment rate approved by property owners. (5) The Sparhawk Zone is in the process of a Proposition 218 balloting proceeding. If the rate per unit increase is approved by property owners and the City Council, the Supplemental Engineer’s Report, Resolutions and necessary documentation used as part of the Proposition 218 ballot procedure will supersede the existing assessment. If the proposed Sparhawk Zone increase is not approved, the existing Sparhawk Zone assessment shall remain in place as shown within this Report.

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City of Morgan Hill Landscape Assessment District No. 1 Engineer’s Report Fiscal Year 2024/25 3

2. OVERVIEW

2.1 Introduction
In 1991, the City Council created the Fox Hollow/Murphy Springs Landscape Assessment District, under the Act, and in 2010 chose to rename it to the City of Morgan Hill Landscape Assessment District No. 1. The District was formed in order to provide for the continued maintenance, operation, and administration of various improvements within the boundaries of the District. Following the initial formation, additional territory was annexed to the District as separate Zones. Currently, the District is comprised of 19 Zones (which decreased from 20 as a result of property owners within Parsons Corner electing to detach from the District in April 2019).

The District provides for and ensures the continued maintenance, servicing, administration, and operation of various landscaping improvements and associated appurtenances located within the public right-of-way and dedicated easements within the boundaries of the District.

2.2 Description of Boundaries
Exhibits from the Engineer’s Report at the formation of the District define the boundaries and maintenance areas of each Zone within the District. These exhibits are on file and available for review at the Office of the City Engineer and, in conjunction with the County of Santa Clara (the “County”) Assessor's maps of the areas annexed, comprise the assessment diagrams for the respective annexations. The Assessor's maps are on file in the office of the County Assessor and are made, by reference, a part of this Report.

2.3 Description of Improvements and Services
The improvements include the construction, operation, maintenance, and servicing of landscaping and appurtenant facilities; including, but not limited to, personnel, electrical energy, utilities such as water and gas, materials, contracting services, and other items necessary for the satisfactory operation of the following services:
“Landscape improvements provided within the District may include, but are not limited to:
ground cover, shrubs, plants and trees, irrigation and drainage systems, graffiti removal, entry monuments, and associated appurtenant facilities. Services provided include all necessary service, operations, administration, and maintenance required to keep the above-mentioned improvements in a healthy, vigorous, and satisfactory condition.” Reference is made to the Plans and Specifications for the improvements, which is on file with the City.

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City of Morgan Hill Landscape Assessment District No. 1 Engineer’s Report Fiscal Year 2024/25 4

3. ESTIMATE OF COSTS

3.1 Definitions of Budget Items
The following definitions describe some of the services and costs that may be included in the Zone Budgets:

Direct Expenses
Maintenance: Includes all regularly scheduled labor, material (i.e. pipe, fertilizer, insecticides, paint, etc.) and equipment required to properly maintain and ensure the satisfactory condition of all landscaping, irrigation and drainage systems, and appurtenant facilities.

Extra Contract Costs: Includes all labor, equipment, and material costs associated with unscheduled repairs and improvements needed to ensure the satisfactory condition of all landscaping, irrigation and drainage systems, and appurtenant facilities.

Water/Sewer: Includes the furnishing of water required for the operation and maintenance of the landscaping facilities.

Electricity Costs: Includes the furnishing of electricity required for irrigation systems for the operation and maintenance of the landscaping facilities.

Other Supplies: Includes costs that are generally unforeseen and not normally included in the yearly maintenance contract costs. This may include repair of damaged amenities due to vandalism, storms, heavy frost, etc. Also included may be planned upgrades that provide a direct benefit to the District. These upgrades could include replacing plant materials and/or renovation of irrigation systems.

Administrative Expenses
Salaries: Includes the cost to particular departments and staff of the City to provide the coordination of District services, operations, and maintenance of the improvements, response to public concerns and education, and procedures associated with the levy and collection of assessments.

Postage/Advertising: Includes the cost of providing any mailed notice to the property owners and publishing and posting the Resolution of Intention as required by the Act.

Internal Services: Includes overhead costs allocated to the District for various City staff services.

Administrative/Engineering Contract: Includes the costs associated with contracting with professionals to provide services specific to the administration of the levy.

Contingency/Capital Replacement Fund Balance (Reduction)/Reserve Positive amounts are collected for various reasons that include, but are not limited to, any or all of the following:
 To maintain reserves which enable the City to pay for costs associated with the District during the first six months of the fiscal year,

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City of Morgan Hill Landscape Assessment District No. 1 Engineer’s Report Fiscal Year 2024/25 5
Contingency/Capital Replacement Fund Balance (Reduction)/Reserve (continued)  To reduce the current fund balance deficit (if any) that exists as of the beginning of the fiscal year, and
 To plan for the replacement of capital improvements in the future.  In May 2011, reserve targets for each subarea were recommended and approved by the Council.  For Fiscal Year 2024/25 due to inflation costs, the reserve targets for each subarea are recommended to be doubled. By doubling the reserve targets the subareas will have a higher fund balance to support inflationary costs, maintenance repairs, and/or general improvements to the district. The increase of allocation to reserve targets will not increase the assessment rate above the maximum allowable assessment rate.

3.2 Zone Budgets
The estimated costs of servicing, maintaining, repairing, and replacing the actual improvements for each Zone for Fiscal Year 2024/25 are shown on the following pages.

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City of Morgan Hill
Landscape Assessment District No. 1
Fiscal Year 2024/25 Budget by Zone
Belle Estates

DIRECT EXPENSES
Maintenance $6,000.00
Extra Contract Costs 1,000.00
Water/Sewer 3,200.00
Electricity Costs 0.00
Other Supplies 500.00
Subtotal Direct Expenses $10,700.00

ADMINISTRATIVE EXPENSES
Salaries $1,205.20
Postage/Advertising 10.03
Internal Services 978.26
Administrative/Engineering Contract 403.53
Subtotal Administrative Expenses $2,597.02
SUBTOTAL ZONE COST $13,297.02
Fund Balance (Reduction)/Reserve (2,137.02)
TOTAL BALANCE TO LEVY $11,160.00
Number of Assessable Units 36
Assessment Rate per Unit $310.00
Estimated Beginning Fund Balance July 1, 2024 $12,881.26 Fund Balance Change (2,137.02)
Estimated Ending Fund Balance June 30, 2025 $10,744.25
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City of Morgan Hill
Landscape Assessment District No. 1
Fiscal Year 2024/25 Budget by Zone

DIRECT EXPENSES
Maintenance
Extra Contract Costs
Water/Sewer
Electricity Costs
Other Supplies
Subtotal Direct Expenses

ADMINISTRATIVE EXPENSES
Salaries
Postage/Advertising
Internal Services
Administrative/Engineering Contract
Subtotal Administrative Expenses

SUBTOTAL ZONE COST
Fund Balance (Reduction)/Reserve

0.00 0.00
$4,620.00
$267.82

2.23 217.39

89.67 $577.12
$5,197.12
(797.12)
$4,400.00
8 $550.00
$12,421.67
(797.12)
$11,624.56
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City of Morgan Hill
Landscape Assessment District No. 1
Fiscal Year 2024/25 Budget by Zone

DIRECT EXPENSES
Maintenance
Extra Contract Costs
Water/Sewer
Electricity Costs
Other Supplies
Subtotal Direct Expenses

ADMINISTRATIVE EXPENSES
Salaries
Postage/Advertising
Internal Services
Administrative/Engineering Contract
Subtotal Administrative Expenses

SUBTOTAL ZONE COST
Fund Balance (Reduction)/Reserve

3.06 298.91
123.30
$793.53
$5,433.53
(1,418.53)
$4,015.00
11 $365.00
$13,678.27
(1,418.53)
$12,259.74
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City of Morgan Hill
Landscape Assessment District No. 1
Fiscal Year 2024/25 Budget by Zone

DIRECT EXPENSES
Maintenance
Extra Contract Costs
Water/Sewer
Electricity Costs
Other Supplies
Subtotal Direct Expenses

ADMINISTRATIVE EXPENSES
Salaries
Postage/Advertising
Internal Services
Administrative/Engineering Contract
Subtotal Administrative Expenses

SUBTOTAL ZONE COST
Fund Balance (Reduction)/Reserve

0.00 0.00
$5,000.00
$2,142.57

17.83 1,739.13
717.39
$4,616.92
$9,616.92
(695.96)
$8,920.96
64 $139.39
$6,881.36
(695.96)
$6,185.40
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City of Morgan Hill
Landscape Assessment District No. 1
Fiscal Year 2024/25 Budget by Zone

DIRECT EXPENSES
Maintenance
Extra Contract Costs
Water/Sewer
Electricity Costs
Other Supplies
Subtotal Direct Expenses

ADMINISTRATIVE EXPENSES
Salaries
Postage/Advertising
Internal Services
Administrative/Engineering Contract
Subtotal Administrative Expenses

SUBTOTAL ZONE COST
Fund Balance (Reduction)/Reserve

0.00 0.00
$9,144.00
$2,510.83

20.89 2,038.04
840.69
$5,410.46
$14,554.46
(1,539.71)
$13,014.75
75 $173.53
$15,690.20
(1,539.71)
$14,150.49
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City of Morgan Hill
Landscape Assessment District No. 1
Fiscal Year 2024/25 Budget by Zone

DIRECT EXPENSES
Maintenance
Extra Contract Costs
Water/Sewer
Electricity Costs
Other Supplies
Subtotal Direct Expenses

ADMINISTRATIVE EXPENSES
Salaries
Postage/Advertising
Internal Services
Administrative/Engineering Contract
Subtotal Administrative Expenses

SUBTOTAL ZONE COST
Fund Balance (Reduction)/Reserve

0.00 4,650.00
247.50
1,000.00
$15,372.23
$1,272.15

10.58 1,032.61
425.95
$2,741.30
$18,113.53
(1,963.53)
$16,150.00
38 $425.00
$9,595.56
(1,963.53)
$7,632.03
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City of Morgan Hill
Landscape Assessment District No. 1
Fiscal Year 2024/25 Budget by Zone

DIRECT EXPENSES
Maintenance
Extra Contract Costs
Water/Sewer
Electricity Costs
Other Supplies
Subtotal Direct Expenses

ADMINISTRATIVE EXPENSES
Salaries
Postage/Advertising
Internal Services
Administrative/Engineering Contract
Subtotal Administrative Expenses

SUBTOTAL ZONE COST
Fund Balance (Reduction)/Reserve

0.00 0.00

0.00 $2,402.75
$2,343.44

19.50 1,902.17
784.65
$5,049.76
$7,452.51
107.49
$7,560.00
70 $108.00
$2,165.54
107.49
$2,273.04
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City of Morgan Hill
Landscape Assessment District No. 1
Fiscal Year 2024/25 Budget by Zone

DIRECT EXPENSES
Maintenance
Extra Contract Costs
Water/Sewer
Electricity Costs
Other Supplies
Subtotal Direct Expenses

ADMINISTRATIVE EXPENSES
Salaries
Postage/Advertising
Internal Services
Administrative/Engineering Contract
Subtotal Administrative Expenses

SUBTOTAL ZONE COST
Fund Balance (Reduction)/Reserve

0.00 0.00

0.00 0.00
$1,092.00
$334.78

2.79 271.74
112.09
$721.39
$1,813.39
(813.39)
$1,000.00
10 $100.00
$4,852.41
(813.39)
$4,039.01
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City of Morgan Hill
Landscape Assessment District No. 1
Fiscal Year 2024/25 Budget by Zone

DIRECT EXPENSES
Maintenance
Extra Contract Costs
Water/Sewer
Electricity Costs
Other Supplies
Subtotal Direct Expenses

ADMINISTRATIVE EXPENSES
Salaries
Postage/Advertising
Internal Services
Administrative/Engineering Contract
Subtotal Administrative Expenses

SUBTOTAL ZONE COST
Fund Balance (Reduction)/Reserve

0.00 0.00

0.00 0.00
$0.00
$1,071.29

8.91 869.57
358.70
$2,308.46
$2,308.46
507.54
$2,816.00
32 $88.00
($7,198.75)
507.54
($6,691.21)
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City of Morgan Hill
Landscape Assessment District No. 1
Fiscal Year 2024/25 Budget by Zone

DIRECT EXPENSES
Maintenance
Extra Contract Costs
Water/Sewer
Electricity Costs
Other Supplies
Subtotal Direct Expenses

ADMINISTRATIVE EXPENSES
Salaries
Postage/Advertising
Internal Services
Administrative/Engineering Contract
Subtotal Administrative Expenses

SUBTOTAL ZONE COST
Fund Balance (Reduction)/Reserve

0.00 0.00

0.00 0.00
$1,092.00
$401.73

3.34 326.09
134.51
$865.67
$1,957.67
(757.67)
$1,200.00
24 $50.00
$2,119.18
(757.67)
$1,361.51
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City of Morgan Hill
Landscape Assessment District No. 1
Fiscal Year 2024/25 Budget by Zone

DIRECT EXPENSES
Maintenance
Extra Contract Costs
Water/Sewer
Electricity Costs
Other Supplies
Subtotal Direct Expenses

ADMINISTRATIVE EXPENSES
Salaries
Postage/Advertising
Internal Services
Administrative/Engineering Contract
Subtotal Administrative Expenses

SUBTOTAL ZONE COST
Fund Balance (Reduction)/Reserve

0.00 0.00
$10,152.00
$2,376.92

19.78 1,929.35
795.86
$5,121.90
$15,273.90
1,316.67
$16,590.57
71 $233.67
$11,611.11
1,316.67
$12,927.78
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City of Morgan Hill
Landscape Assessment District No. 1
Fiscal Year 2024/25 Budget by Zone

DIRECT EXPENSES
Maintenance
Extra Contract Costs
Water/Sewer
Electricity Costs
Other Supplies
Subtotal Direct Expenses

ADMINISTRATIVE EXPENSES
Salaries
Postage/Advertising
Internal Services
Administrative/Engineering Contract
Subtotal Administrative Expenses

SUBTOTAL ZONE COST
Fund Balance (Reduction)/Reserve

0.00 250.00

0.00 0.00
$2,002.00
$167.39

1.39 135.87

56.05 $360.70
$2,362.70
(112.70)
$2,250.00
5 $450.00
$1,267.88
(112.70)
$1,155.18
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City of Morgan Hill
Landscape Assessment District No. 1
Fiscal Year 2024/25 Budget by Zone

DIRECT EXPENSES
Maintenance
Extra Contract Costs
Water/Sewer
Electricity Costs
Other Supplies
Subtotal Direct Expenses

ADMINISTRATIVE EXPENSES
Salaries
Postage/Advertising
Internal Services
Administrative/Engineering Contract
Subtotal Administrative Expenses

SUBTOTAL ZONE COST
Fund Balance (Reduction)/Reserve

23.40 2,282.61
941.58
$6,059.71
$23,089.19
850.81
$23,940.00
84 $285.00
$17,609.50
850.81
$18,460.31
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City of Morgan Hill
Landscape Assessment District No. 1
Fiscal Year 2024/25 Budget by Zone

DIRECT EXPENSES
Maintenance
Extra Contract Costs
Water/Sewer
Electricity Costs
Other Supplies
Subtotal Direct Expenses

ADMINISTRATIVE EXPENSES
Salaries
Postage/Advertising
Internal Services
Administrative/Engineering Contract
Subtotal Administrative Expenses

SUBTOTAL ZONE COST
Fund Balance (Reduction)/Reserve

33.15 3,233.70
1,333.90
$8,584.59
$51,628.55
(1,053.55)
$50,575.00
119
$425.00
$36,479.39
(1,053.55)
$35,425.83
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City of Morgan Hill
Landscape Assessment District No. 1
Fiscal Year 2024/25 Budget by Zone

DIRECT EXPENSES
Maintenance
Extra Contract Costs
Water/Sewer
Electricity Costs
Other Supplies
Subtotal Direct Expenses

ADMINISTRATIVE EXPENSES
Salaries
Postage/Advertising
Internal Services
Administrative/Engineering Contract
Subtotal Administrative Expenses

SUBTOTAL ZONE COST
Fund Balance (Reduction)/Reserve

7.52 733.70
302.65
$1,947.76
$12,590.65
(1,790.65)
$10,800.00
27 $400.00
$16,393.43
(1,790.65)
$14,602.78
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City of Morgan Hill
Landscape Assessment District No. 1
Fiscal Year 2024/25 Budget by Zone

DIRECT EXPENSES
Maintenance
Extra Contract Costs
Water/Sewer
Electricity Costs
Other Supplies
Subtotal Direct Expenses

ADMINISTRATIVE EXPENSES
Salaries
Postage/Advertising
Internal Services
Administrative/Engineering Contract
Subtotal Administrative Expenses

SUBTOTAL ZONE COST
Fund Balance (Reduction)/Reserve

0.00 0.00

0.00 0.00
$1,752.00
$368.25

3.06 298.91
123.30
$793.53
$2,545.53
2,404.47
$4,950.00
11 $450.00
$15,959.07
2,404.47
$18,363.54
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City of Morgan Hill
Landscape Assessment District No. 1
Fiscal Year 2024/25 Budget by Zone

DIRECT EXPENSES
Maintenance
Extra Contract Costs
Water/Sewer
Electricity Costs
Other Supplies
Subtotal Direct Expenses

ADMINISTRATIVE EXPENSES
Salaries
Postage/Advertising
Internal Services
Administrative/Engineering Contract
Subtotal Administrative Expenses

SUBTOTAL ZONE COST
Fund Balance (Reduction)/Reserve

0.00 0.00

0.00 $2,494.00
$602.60

5.01 489.13
201.77
$1,298.51
$3,792.51
2,593.17
$6,385.68
18 $354.76
$1,724.16
2,593.17
$4,317.33
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City of Morgan Hill
Landscape Assessment District No. 1
Fiscal Year 2024/25 Budget by Zone

DIRECT EXPENSES
Maintenance
Extra Contract Costs
Water/Sewer
Electricity Costs
Other Supplies
Subtotal Direct Expenses

ADMINISTRATIVE EXPENSES
Salaries
Postage/Advertising
Internal Services
Administrative/Engineering Contract
Subtotal Administrative Expenses

SUBTOTAL ZONE COST
Fund Balance (Reduction)/Reserve

0.00 0.00
$11,000.00
$1,171.72

9.75 951.09
392.32
$2,524.88
$13,524.88

71.22 $13,596.10
35 $388.46
$7,322.65

71.22 $7,393.87
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City of Morgan Hill
Landscape Assessment District No. 1
Fiscal Year 2024/25 Budget by Zone

DIRECT EXPENSES
Maintenance
Extra Contract Costs
Water/Sewer
Electricity Costs
Other Supplies
Subtotal Direct Expenses

ADMINISTRATIVE EXPENSES
Salaries
Postage/Advertising
Internal Services
Administrative/Engineering Contract
Subtotal Administrative Expenses

SUBTOTAL ZONE COST
Fund Balance (Reduction)/Reserve

0.00 400.00
$3,405.50
$334.78

2.79 271.74
112.09
$721.39
$4,126.89
(376.89)
$3,750.00
10 $375.00
$15,992.86
(376.89)
$15,615.97
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City of Morgan Hill
Landscape Assessment District No. 1
Fiscal Year 2024/25 Budget by Zone

DIRECT EXPENSES
Maintenance
Extra Contract Costs
Water/Sewer
Electricity Costs
Other Supplies
Subtotal Direct Expenses

ADMINISTRATIVE EXPENSES
Salaries
Postage/Advertising
Internal Services
Administrative/Engineering Contract
Subtotal Administrative Expenses

SUBTOTAL ZONE COST
Fund Balance (Reduction)/Reserve

TOTAL BALANCE TO LEVY
Number of Assessable Units
Assessment Rate per Unit
Estimated Beginning Fund Balance July 1, 2024
Fund Balance Change
Estimated Ending Fund Balance June 30, 2025
Total of all Zones
$88,574.40
13,500.00
43,000.00
4,710.40
5,800.00
$155,584.80
$24,639.60
205.00
20,000.00
8,250.00
$53,094.60
$208,679.40
(5,605.34)
$203,074.06
748
N/A
$197,446.75
(5,605.34)
$191,841.41
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City of Morgan Hill Landscape Assessment District No. 1 Engineer’s Report Fiscal Year 2024/25 6

4. ASSESSMENTS
The amount of the actual assessment for the Fiscal Year 2024/25 apportioned to each parcel, as shown on the latest equalized roll at the County Assessor’s office, is listed in Section 6 of this Report. The description of each lot or parcel is part of the records of the County Assessor and such records are, by reference, made part of this Report.

4.1 Method of Apportionment
The assessments are levied in accordance with the assessment methodology adopted and approved by the City Council at the time of District formation.

Pursuant to the Act and Article XIII D of the Constitution of the State of California, all parcels that have special benefit conferred upon them as a result of the maintenance and operation of improvements shall be identified and the proportionate special benefit derived by each identified parcel shall be determined in relation to the entire cost of the maintenance and operation of the improvements. Only parcels that receive direct special benefit are assessed, and each parcel is assessed in proportion to the estimated benefit received.

Several Zones have been annexed into the District and it has been determined that by reason of variations in the nature, location, and extent of the improvements, those areas will receive differing degrees of benefit from the improvements.

Within the Zones, each parcel is allocated a number of units, where each such unit is deemed to receive the same proportional special benefit from the maintenance and operation of the improvements within that Zone. The typical parcel, with a single-family residential use, will have one unit assigned. If the use or nature of a parcel confers special benefit in a greater or lesser degree than that typical use, that parcel may have greater than or less than one unit assigned.

4.2 Belle Estates Zone
The assessment rate originally approved at the time of annexing this Zone into the District was $502.22 per unit. There is currently no inflator associated with the Belle Estates Zone assessments.

There are currently 36 parcels within this Zone, and the total Zone costs are spread to each of the 36 units as follows:

Estimated Fiscal Year 2024/25 Costs and Fund Adjustment $11,160.00 Total Units 36
Fiscal Year 2024/25 Actual Assessment Per Unit $310.00
Fiscal Year 2024/25 Maximum Assessment Per Unit $502.22

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City of Morgan Hill Landscape Assessment District No. 1 Engineer’s Report Fiscal Year 2024/25 7
Any change in the assessment rate from the previous fiscal year is identified below:

Fiscal Year 2023/24 Actual Assessment Per Unit $310.00
Fiscal Year 2024/25 Actual Assessment Per Unit $310.00
Change in the Actual Assessment Rate $0.00

4.3 Chang/Bertelone Zone
The assessment rate originally approved at the time of annexing this Zone into the District was $1,215.00 per unit. There is currently no inflator associated with the Chang/Bertelone Zone assessments.

There are currently 8 parcels within this Zone, and the total Zone costs are spread to each of the 8 units as follows:

Estimated Fiscal Year 2024/25 Costs and Fund Adjustment $4,400.00 Total Units 8
Fiscal Year 2024/25 Actual Assessment Per Unit $550.00
Fiscal Year 2024/25 Maximum Assessment Per Unit $1,215.00 Any change in the assessment rate from the previous fiscal year is identified below:

Fiscal Year 2023/24 Actual Assessment Per Unit $550.00
Fiscal Year 2024/25 Actual Assessment Per Unit $550.00
Change in the Actual Assessment Rate $0.00

4.4 Conte Gardens Zone
The assessment rate originally approved at the time of annexing this Zone into the District was $477.82 per unit. There is currently no inflator associated with the Conte Gardens Zone assessments.

There are currently 11 parcels within this Zone, and the total Zone costs are spread to each of the 11 units as follows:

Estimated Fiscal Year 2024/25 Costs and Fund Adjustment $4,015.00 Total Units 11
Fiscal Year 2024/25 Actual Assessment Per Unit $365.00
Fiscal Year 2024/25 Maximum Assessment Per Unit $477.82 Any change in the assessment rate from the previous fiscal year is identified below:

Fiscal Year 2023/24 Actual Assessment Per Unit $365.00
Fiscal Year 2024/25 Actual Assessment Per Unit $365.00

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City of Morgan Hill Landscape Assessment District No. 1 Engineer’s Report Fiscal Year 2024/25 8
Change in the Actual Assessment Rate $0.00

4.5 Diana Estates Zone
The assessment rate originally approved at the time of annexing this Zone into the District was $139.39 per unit. There is currently no inflator associated with the Diana Estates Zone assessments.

There are currently 64 parcels within this Zone, and the total Zone costs are spread to each of the 64 units as follows:

Estimated Fiscal Year 2024/25 Costs and Fund Adjustment $8,920.96 Total Units 64
Fiscal Year 2024/25 Actual Assessment Per Unit (1) $139.39 Fiscal Year 2024/25 Maximum Assessment Per Unit $139.39 (1) May be rounded down to even cents per parcel for County Tax Roll purposes.

Any change in the assessment rate from the previous fiscal year is identified below:

Fiscal Year 2023/24 Actual Assessment Per Unit $139.39
Fiscal Year 2024/25 Actual Assessment Per Unit $139.39
Change in the Actual Assessment Rate $0.00

4.6 Fox Hollow/Murphy Springs Zone
The assessment rate originally approved at the time of District formation was $106.15 per unit. In July 2005, the City conducted Proposition 218 proceedings to increase the maximum assessment rate to $141.10 per unit and add an annual inflator of 3% for the Zone. Property owners approved the rate increase and the inflator. Each year the maximum assessment rate is increased by 3% over the previous year’s maximum assessment rate. The rate increase took effect in Fiscal Year 2005/06 and the 3% inflator took effect in Fiscal Year 2006/07.

There are currently 75 parcels within this Zone, and the total Zone costs are spread to each of the 75 units as follows:

Estimated Fiscal Year 2024/25 Costs and Fund Adjustment $13,014.75 Total Units 75
Fiscal Year 2024/25 Actual Assessment Per Unit(1) $173.53 Fiscal Year 2024/25 Maximum Assessment Per Unit $247.41 (1) May be rounded down to even cents per parcel for County Tax Roll purposes.

Any change in the assessment rate from the previous fiscal year is identified below:

Fiscal Year 2023/24 Actual Assessment Per Unit $173.53

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City of Morgan Hill Landscape Assessment District No. 1 Engineer’s Report Fiscal Year 2024/25 9
Fiscal Year 2024/25 Actual Assessment Per Unit $173.53
Change in the Actual Assessment Rate $0.00

4.7 Hamilton Square Zone
The assessment rate originally approved at the time of annexing this Zone into the District was $425.54 per unit. There is currently no inflator associated with the Hamilton Square Zone assessments.

There are currently 38 parcels within this Zone, and the total Zone costs are spread to each of the 38 units as follows:

Estimated Fiscal Year 2024/25 Costs and Fund Adjustment $16,150.00 Total Units 38
Fiscal Year 2024/25 Actual Assessment Per Unit $425.00
Fiscal Year 2024/25 Maximum Assessment Per Unit $425.54 Any change in the assessment rate from the previous fiscal year is identified below:

Fiscal Year 2023/24 Actual Assessment Per Unit $425.00
Fiscal Year 2024/25 Actual Assessment Per Unit $425.00
Change in the Actual Assessment Rate $0.00

4.8 Jackson Meadows 6A/6B Zone
The assessment rate originally approved at the time of annexing this Zone into the District was $108.10 per unit. There is currently no inflator associated with the Jackson Meadows 6A/6B Zone assessments.

There are currently 70 parcels within this Zone, and the total Zone costs are spread to each of the 70 units as follows:

Estimated Fiscal Year 2024/25 Costs and Fund Adjustment $7,560.00 Total Units 70
Fiscal Year 2024/25 Actual Assessment Per Unit $108.00
Fiscal Year 2024/25 Maximum Assessment Per Unit $108.10 Any change in the assessment rate from the previous fiscal year is identified below:

Fiscal Year 2023/24 Actual Assessment Per Unit $108.00
Fiscal Year 2024/25 Actual Assessment Per Unit $108.00
Change in the Actual Assessment Rate $0.00

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City of Morgan Hill Landscape Assessment District No. 1 Engineer’s Report Fiscal Year 2024/25 10

4.9 Jackson Meadows Number 7 Zone
The assessment rate originally approved at the time of annexing this Zone into the District was $314.58 per unit. There is currently no inflator associated with the Jackson Meadows Number 7 Zone assessments.

There are currently 10 parcels within this Zone, and the total Zone costs are spread to each of the 10 units as follows:

Estimated Fiscal Year 2024/25 Costs and Fund Adjustment $1,000.00 Total Units 10
Fiscal Year 2024/25 Actual Assessment Per Unit $100.00
Fiscal Year 2024/25 Maximum Assessment Per Unit $314.58 Any change in the assessment rate from the previous fiscal year is identified below:

Fiscal Year 2023/24 Actual Assessment Per Unit $100.00
Fiscal Year 2024/25 Actual Assessment Per Unit $100.00
Change in the Actual Assessment Rate $0.00

4.10 La Grande Estates Zone
The assessment rate originally approved at the time of annexing this Zone into the District was $88.00 per unit. There is currently no inflator associated with the La Grande Estates Zone assessments.

There are currently 32 parcels within this Zone, and the total Zone costs are spread to each of the 32 units as follows:

Estimated Fiscal Year 2024/25 Costs and Fund Adjustment $2,816.00 Total Units 32
Fiscal Year 2024/25 Actual Assessment Per Unit $88.00
Fiscal Year 2024/25 Maximum Assessment Per Unit $88.00
Any change in the assessment rate from the previous fiscal year is identified below:

Fiscal Year 2023/24 Actual Assessment Per Unit $88.00
Fiscal Year 2024/25 Actual Assessment Per Unit $88.00
Change in the Actual Assessment Rate $0.00

4.11 Lacrosse/Gera Zone
The assessment rate originally approved at the time of annexing this Zone into the District was $142.99 per unit. There is currently no inflator associated with the Lacrosse/Gera Zone assessments.

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City of Morgan Hill Landscape Assessment District No. 1 Engineer’s Report Fiscal Year 2024/25 11
There are currently 24 parcels within this Zone, and the total Zone costs are spread to each of the 24 units as follows:

Estimated Fiscal Year 2024/25 Costs and Fund Adjustment $1,200.00 Total Units 24
Fiscal Year 2024/25 Actual Assessment Per Unit $50.00
Fiscal Year 2024/25 Maximum Assessment Per Unit $142.99

Any change in the assessment rate from the previous fiscal year is identified below:

Fiscal Year 2022/23 Actual Assessment Per Unit $50.00
Fiscal Year 2024/25 Actual Assessment Per Unit $50.00
Change in the Actual Assessment Rate $0.00

4.12 Llagas Creek Estates Zone
The assessment rate originally approved at the time of annexing this Zone into the District was $140.84 per unit. In July 2005, the City conducted Proposition 218 proceedings to increase the maximum assessment rate to $190.00 per unit and add an annual inflator of 3% for the Zone. Property owners approved the rate increase and the inflator. Each year the maximum assessment rate is increased by 3% over the previous year’s maximum assessment rate. The rate increase took effect in Fiscal Year 2005/06 and the 3% inflator took effect in Fiscal Year 2006/07.

There are currently 71 parcels within this Zone, and the total Zone costs are spread to each of the 71 units as follows:

Estimated Fiscal Year 2024/25 Costs and Fund Adjustment $16,590.57 Total Units 71
Fiscal Year 2024/25 Actual Assessment Per Unit (1) $233.67 Fiscal Year 2024/25 Maximum Assessment Per Unit $333.16 (1) May be rounded down to even cents per parcel for County Tax Roll purposes.

Any change in the assessment rate from the previous fiscal year is identified below:

Fiscal Year 2023/24 Actual Assessment Per Unit $233.67
Fiscal Year 2024/25 Actual Assessment Per Unit $233.67
Change in the Actual Assessment Rate $0.00

4.13 Llagas/Obata Zone
The assessment rate originally approved at the time of annexing this Zone into the District was $629.16 per unit. There is currently no inflator associated with the Llagas/Obata Zone assessments.

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City of Morgan Hill Landscape Assessment District No. 1 Engineer’s Report Fiscal Year 2024/25 12
There are currently 5 parcels within this Zone, and the total Zone costs are spread to each of the 5 units as follows:

Estimated Fiscal Year 2024/25 Costs and Fund Adjustment $2,250.00 Total Units 5
Fiscal Year 2024/25 Actual Assessment Per Unit $450.00
Fiscal Year 2024/25 Maximum Assessment Per Unit $629.16 Any change in the assessment rate from the previous fiscal year is identified below:

Fiscal Year 2023/24 Actual Assessment Per Unit $450.00
Fiscal Year 2024/25 Actual Assessment Per Unit $450.00
Change in the Actual Assessment Rate $0.00

4.14 Mill Creek Zone
The assessment rate originally approved at the time of annexing this Zone into the District was $186.82 per unit. In February 2020, the City conducted Proposition 218 proceedings to increase the maximum assessment rate to $285.00 and add an annual inflator of 3% for the Zone. Property owners approved the assessment rate increase to $285.00 per unit and the inflator. The rate increase took effect in Fiscal Year 2020/21 and the 3% inflator takes effect in Fiscal Year 2021/22.

There are currently 84 parcels within this Zone, and the total Zone costs are spread to each of the 84 units as follows:

Estimated Fiscal Year 2024/25 Costs and Fund Adjustment $23,940.00 Total Units 84
Fiscal Year 2024/25 Actual Assessment Per Unit $285.00
Fiscal Year 2024/25 Maximum Assessment Per Unit (1) $320.77 (1) Assessment Rate increase approved by property owners in February 2020.

Any change in the assessment rate from the previous fiscal year is identified below:

Fiscal Year 2023/24 Actual Assessment Per Unit $285.00
Fiscal Year 2024/25 Actual Assessment Per Unit $285.00
Change in the Actual Assessment Rate $0.00

4.15 Oak Creek I, II, III
The assessment rate originally approved at the time of annexing this Zone into the District was $453.82 per unit. There is currently no inflator associated with the Oak Creek I, II, III Zone assessments.

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City of Morgan Hill Landscape Assessment District No. 1 Engineer’s Report Fiscal Year 2024/25 13
There are currently 119 parcels within this Zone, and the total Zone costs are spread to each of the 119 units as follows:

Estimated Fiscal Year 2024/25 Costs and Fund Adjustment $50,575.00 Total Units 119
Fiscal Year 2024/25 Actual Assessment Per Unit $425.00
Fiscal Year 2024/25 Maximum Assessment Per Unit $453.82 Any change in the assessment rate from the previous fiscal year is identified below:

Fiscal Year 2023/24 Actual Assessment Per Unit $425.00
Fiscal Year 2024/25 Actual Assessment Per Unit $425.00
Change in the Actual Assessment Rate $0.00

4.16 Parsons Corner Zone
In April 2019, property owners in the Parsons Corner Zone voted to detach from the District. Therefore, there is no assessment for the Parsons Corner Zone.

4.17 Rose Haven Zone
The assessment rate originally approved at the time of annexing this Zone into the District was $488.47 per unit. There is currently no inflator associated with the Rose Haven Zone assessments.

There are currently 24 parcels with a total of 27 units within this Zone, and the total Zone costs are spread to each of the 27 units as follows:

Estimated Fiscal Year 2024/25 Costs and Fund Adjustment $10,800.00 Total Units 27
Fiscal Year 2024/25 Actual Assessment Per Unit $400.00
Fiscal Year 2024/25 Maximum Assessment Per Unit $488.47 Any change in the assessment rate from the previous fiscal year is identified below:

Fiscal Year 2023/24 Actual Assessment Per Unit $400.00
Fiscal Year 2024/25 Actual Assessment Per Unit $400.00
Change in the Actual Assessment Rate $0.00

4.18 Sandalwood Zone
The assessment rate originally approved at the time of annexing this Zone into the District was $192.39 per unit. In April 2018, property owners approved the assessment rate increase to $450.00 per unit. There is currently no inflator associated with the Sandalwood Zone assessments.

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City of Morgan Hill Landscape Assessment District No. 1 Engineer’s Report Fiscal Year 2024/25 14
There are currently 11 parcels within this Zone, and the total Zone costs are spread to each of the 11 units as follows:

Estimated Fiscal Year 2024/25 Costs and Fund Adjustment $4,950.00 Total Units 11
Fiscal Year 2024/25 Actual Assessment Per Unit $450.00
Fiscal Year 2024/25 Maximum Assessment Per Unit(1) $450.00 (1) Assessment Rate increase approved by property owners in April 2018.

Any change in the assessment rate from the previous fiscal year is identified below:

Fiscal Year 2023/24 Actual Assessment Per Unit $450.00
Fiscal Year 2024/25 Actual Assessment Per Unit $450.00
Change in the Actual Assessment Rate $0.00

4.19 Sparhawk Zone
The assessment rate originally approved at the time of annexing this Zone into the District was $174.77 per unit. In July 2005, the City conducted Proposition 218 proceedings to increase the maximum assessment rate to $202.32 per unit and add an annual inflator of 3% for the Zone. Property owners approved the rate increase and the inflator. Each year the maximum assessment rate is increased by 3% over the previous year’s maximum assessment rate. The rate increase took effect in Fiscal Year 2005/06 and the 3% inflator took effect in Fiscal Year 2006/07.

The Sparhawk Zone is in the process of a Proposition 218 balloting proceeding. If the rate per unit increase is approved by property owners and the City Council, the Supplemental Engineer’s Report, Resolutions and necessary documentation used as part of the Proposition 218 ballot procedure will supersede the existing assessment. If the proposed Sparhawk Zone increase is not approved, the existing Sparhawk Zone assessment shall remain in place as shown within this Report.

There are currently 18 parcels within this Zone, and the total Zone costs are spread to each of the 18 units as follows:

Estimated Fiscal Year 2024/25 Costs and Fund Adjustment $6,385.86 Total Units 18
Fiscal Year 2024/25 Actual Assessment Per Unit $354.76
Fiscal Year 2024/25 Maximum Assessment Per Unit $354.76 Any change in the assessment rate from the previous fiscal year is identified below:

Fiscal Year 2023/24 Actual Assessment Per Unit $334.00
Fiscal Year 2024/25 Actual Assessment Per Unit $354.76
Change in the Actual Assessment Rate $20.76

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City of Morgan Hill Landscape Assessment District No. 1 Engineer’s Report Fiscal Year 2024/25 15

4.20 Stone Creek Zone
The assessment rate originally approved at the time of annexing this Zone into the District was $306.66 per unit. In July 2005, the City conducted Proposition 218 proceedings to add an annual inflator of 3% for the Zone. Property owners approved the inflator. Each year the maximum assessment rate is increased by 3% over the previous year’s maximum assessment rate. The inflator took effect in Fiscal Year 2005/06.

There are currently 35 parcels within this Zone, and the total Zone costs are spread to each of the 35 units as follows:

Estimated Fiscal Year 2024/25 Costs and Fund Adjustment $13,596.10 Total Units 35
Fiscal Year 2024/25 Actual Assessment Per Unit $388.46
Fiscal Year 2024/25 Maximum Assessment Per Unit $553.86 Any change in the assessment rate from the previous fiscal year is identified below:

Fiscal Year 2023/24 Actual Assessment Per Unit $388.46
Fiscal Year 2024/25 Actual Assessment Per Unit $388.46
Change in the Actual Assessment Rate $0.00

4.21 Sunnyside/Stone Gate Zone
The assessment rate originally approved at the time of annexing this Zone into the District was $449.40 per unit. In July 2005, the City conducted Proposition 218 proceedings to add an annual inflator of 3% for the Zone. Property owners approved the inflator. Each year the maximum assessment rate is increased by 3% over the previous year’s maximum assessment rate. The inflator took effect in Fiscal Year 2005/06.

There are currently 10 parcels within this Zone, and the total Zone costs are spread to each of the 10 units as follows:

Estimated Fiscal Year 2024/25 Costs and Fund Adjustment $3,750.00 Total Units 10
Fiscal Year 2024/25 Actual Assessment Per Unit $375.00
Fiscal Year 2024/25 Maximum Assessment Per Unit $811.66 Any change in the assessment rate from the previous fiscal year is identified below:

Fiscal Year 2023/24 Actual Assessment Per Unit $375.00
Fiscal Year 2024/25 Actual Assessment Per Unit $375.00
Change in the Actual Assessment Rate $0.00

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City of Morgan Hill Landscape Assessment District No. 1 Engineer’s Report Fiscal Year 2024/25 16

5. ASSESSMENT DIAGRAMS
The Assessment Diagrams for each Zone in the District have been submitted to the City Clerk in the format required under the provisions of the Act. Copies of the diagrams are included herein. The lines and dimensions shown on maps of the County Assessor for the current year are, by reference, made part of this Report as well.

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City of Morgan Hill Landscape Assessment District No. 1 Engineer’s Report Fiscal Year 2024/25 17

6. ASSESSMENT ROLL
The listing of Fiscal Year 2024/25 assessments is provided per Zone on the following pages. The description of each lot or parcel as part of the records of the County Assessor are, by reference, made part of this Report as well.

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City of Morgan Hill
Belle Estates
Preliminary Assessment Roll for Fiscal Year 2024/25
APN Rate Per Unit Units Rounding Adjustment 2024/25 Assessment 726-16-043 $310.00 1 $0.00 $310.00
726-16-044 310.00 1 0.00 310.00
726-16-045 310.00 1 0.00 310.00
726-16-046 310.00 1 0.00 310.00
726-16-048 310.00 1 0.00 310.00
726-16-050 310.00 1 0.00 310.00
726-16-051 310.00 1 0.00 310.00
726-16-052 310.00 1 0.00 310.00
726-16-053 310.00 1 0.00 310.00
726-16-054 310.00 1 0.00 310.00
726-16-055 310.00 1 0.00 310.00
726-16-056 310.00 1 0.00 310.00
726-16-057 310.00 1 0.00 310.00
726-16-058 310.00 1 0.00 310.00
726-16-059 310.00 1 0.00 310.00
726-16-060 310.00 1 0.00 310.00
726-16-061 310.00 1 0.00 310.00
726-16-062 310.00 1 0.00 310.00
726-16-063 310.00 1 0.00 310.00
726-16-064 310.00 1 0.00 310.00
726-16-065 310.00 1 0.00 310.00
726-16-066 310.00 1 0.00 310.00
726-16-068 310.00 1 0.00 310.00
726-16-069 310.00 1 0.00 310.00
726-16-070 310.00 1 0.00 310.00
726-16-071 310.00 1 0.00 310.00
726-16-072 310.00 1 0.00 310.00
726-16-074 310.00 1 0.00 310.00
726-16-075 310.00 1 0.00 310.00
726-16-076 310.00 1 0.00 310.00
726-16-077 310.00 1 0.00 310.00
726-16-078 310.00 1 0.00 310.00
726-16-079 310.00 1 0.00 310.00
726-16-080 310.00 1 0.00 310.00
726-16-081 310.00 1 0.00 310.00
726-16-082 310.00 1 0.00 310.00
36 Accounts 36 $0.00 $11,160.00
Slight variances may occur due to rounding
Copyright © 2013 by NBS 03/27/2024 03:39:45PM

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City of Morgan Hill
Chang/Bertelone
Preliminary Assessment Roll for Fiscal Year 2024/25
APN Rate Per Unit Units Rounding Adjustment 2024/25 Assessment 764-23-050 $550.00 1 $0.00 $550.00
764-23-051 550.00 1 0.00 550.00
764-23-052 550.00 1 0.00 550.00
764-23-053 550.00 1 0.00 550.00
764-23-057 550.00 1 0.00 550.00
764-23-058 550.00 1 0.00 550.00
764-23-059 550.00 1 0.00 550.00
764-23-060 550.00 1 0.00 550.00
8 Accounts 8 $0.00 $4,400.00
Slight variances may occur due to rounding
Copyright © 2013 by NBS 03/27/2024 03:39:45PM

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City of Morgan Hill
Conte Gardens
Preliminary Assessment Roll for Fiscal Year 2024/25
APN Rate Per Unit Units Rounding Adjustment 2024/25 Assessment 728-10-010 $365.00 1 $0.00 $365.00
728-10-011 365.00 1 0.00 365.00
728-10-012 365.00 1 0.00 365.00
728-10-013 365.00 1 0.00 365.00
728-10-014 365.00 1 0.00 365.00
728-10-015 365.00 1 0.00 365.00
728-10-016 365.00 1 0.00 365.00
728-10-017 365.00 1 0.00 365.00
728-10-018 365.00 1 0.00 365.00
728-10-019 365.00 1 0.00 365.00
728-10-020 365.00 1 0.00 365.00
11 Accounts 11 $0.00 $4,015.00
Slight variances may occur due to rounding
Copyright © 2013 by NBS 03/27/2024 03:39:45PM

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City of Morgan Hill
Diana Estates
Preliminary Assessment Roll for Fiscal Year 2024/25
APN Rate Per Unit Units Rounding Adjustment 2024/25 Assessment 726-07-042 $139.39 1 ($0.01) $139.38
726-07-043 139.39 1 (0.01) 139.38
726-07-044 139.39 1 (0.01) 139.38
726-07-045 139.39 1 (0.01) 139.38
726-07-055 139.39 1 (0.01) 139.38
726-07-056 139.39 1 (0.01) 139.38
726-07-057 139.39 1 (0.01) 139.38
726-07-058 139.39 1 (0.01) 139.38
726-07-059 139.39 1 (0.01) 139.38
726-07-060 139.39 1 (0.01) 139.38
726-07-061 139.39 1 (0.01) 139.38
726-07-062 139.39 1 (0.01) 139.38
726-07-063 139.39 1 (0.01) 139.38
726-07-064 139.39 1 (0.01) 139.38
726-07-065 139.39 1 (0.01) 139.38
726-07-066 139.39 1 (0.01) 139.38
726-07-067 139.39 1 (0.01) 139.38
726-07-068 139.39 1 (0.01) 139.38
726-07-069 139.39 1 (0.01) 139.38
726-07-070 139.39 1 (0.01) 139.38
726-07-071 139.39 1 (0.01) 139.38
726-07-072 139.39 1 (0.01) 139.38
726-07-073 139.39 1 (0.01) 139.38
726-07-074 139.39 1 (0.01) 139.38
726-07-075 139.39 1 (0.01) 139.38
726-07-077 139.39 1 (0.01) 139.38
726-07-078 139.39 1 (0.01) 139.38
726-07-080 139.39 1 (0.01) 139.38
726-07-081 139.39 1 (0.01) 139.38
726-07-082 139.39 1 (0.01) 139.38
726-07-083 139.39 1 (0.01) 139.38
726-07-084 139.39 1 (0.01) 139.38
726-07-085 139.39 1 (0.01) 139.38
726-07-086 139.39 1 (0.01) 139.38
726-07-087 139.39 1 (0.01) 139.38
726-08-031 139.39 1 (0.01) 139.38
726-08-032 139.39 1 (0.01) 139.38
726-08-033 139.39 1 (0.01) 139.38
726-08-034 139.39 1 (0.01) 139.38
726-08-035 139.39 1 (0.01) 139.38
726-08-036 139.39 1 (0.01) 139.38
726-08-046 139.39 1 (0.01) 139.38
Slight variances may occur due to rounding
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City of Morgan Hill
Diana Estates
Preliminary Assessment Roll for Fiscal Year 2024/25
APN Rate Per Unit Units Rounding Adjustment 2024/25 Assessment 726-08-047 139.39 1 (0.01) 139.38
726-08-048 139.39 1 (0.01) 139.38
726-08-049 139.39 1 (0.01) 139.38
726-08-050 139.39 1 (0.01) 139.38
726-08-051 139.39 1 (0.01) 139.38
726-08-052 139.39 1 (0.01) 139.38
726-08-053 139.39 1 (0.01) 139.38
726-08-054 139.39 1 (0.01) 139.38
726-08-055 139.39 1 (0.01) 139.38
726-08-056 139.39 1 (0.01) 139.38
726-08-057 139.39 1 (0.01) 139.38
726-08-058 139.39 1 (0.01) 139.38
726-08-059 139.39 1 (0.01) 139.38
726-08-060 139.39 1 (0.01) 139.38
726-08-061 139.39 1 (0.01) 139.38
726-08-062 139.39 1 (0.01) 139.38
726-08-063 139.39 1 (0.01) 139.38
726-08-064 139.39 1 (0.01) 139.38
726-08-065 139.39 1 (0.01) 139.38
726-08-066 139.39 1 (0.01) 139.38
726-08-067 139.39 1 (0.01) 139.38
726-08-068 139.39 1 (0.01) 139.38
64 Accounts 64 ($0.64) $8,920.32
Slight variances may occur due to rounding
Copyright © 2013 by NBS 03/27/2024 03:39:45PM

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City of Morgan Hill
Fox Hollow
Preliminary Assessment Roll for Fiscal Year 2024/25
APN Rate Per Unit Units Rounding Adjustment 2024/25 Assessment 764-47-001 $173.53 1 ($0.01) $173.52
764-47-002 173.53 1 (0.01) 173.52
764-47-003 173.53 1 (0.01) 173.52
764-47-004 173.53 1 (0.01) 173.52
764-47-005 173.53 1 (0.01) 173.52
764-47-006 173.53 1 (0.01) 173.52
764-47-007 173.53 1 (0.01) 173.52
764-47-008 173.53 1 (0.01) 173.52
764-47-009 173.53 1 (0.01) 173.52
764-47-010 173.53 1 (0.01) 173.52
764-47-011 173.53 1 (0.01) 173.52
764-47-012 173.53 1 (0.01) 173.52
764-47-013 173.53 1 (0.01) 173.52
764-47-014 173.53 1 (0.01) 173.52
764-47-015 173.53 1 (0.01) 173.52
764-47-016 173.53 1 (0.01) 173.52
764-47-017 173.53 1 (0.01) 173.52
764-47-018 173.53 1 (0.01) 173.52
764-47-020 173.53 1 (0.01) 173.52
764-47-021 173.53 1 (0.01) 173.52
764-47-022 173.53 1 (0.01) 173.52
764-47-023 173.53 1 (0.01) 173.52
764-47-024 173.53 1 (0.01) 173.52
764-47-025 173.53 1 (0.01) 173.52
764-47-026 173.53 1 (0.01) 173.52
764-47-027 173.53 1 (0.01) 173.52
764-47-028 173.53 1 (0.01) 173.52
764-47-029 173.53 1 (0.01) 173.52
764-47-030 173.53 1 (0.01) 173.52
764-47-031 173.53 1 (0.01) 173.52
764-47-032 173.53 1 (0.01) 173.52
764-47-033 173.53 1 (0.01) 173.52
764-47-034 173.53 1 (0.01) 173.52
764-47-035 173.53 1 (0.01) 173.52
764-47-036 173.53 1 (0.01) 173.52
764-47-037 173.53 1 (0.01) 173.52
764-47-038 173.53 1 (0.01) 173.52
764-47-039 173.53 1 (0.01) 173.52
764-47-040 173.53 1 (0.01) 173.52
764-47-041 173.53 1 (0.01) 173.52
764-47-042 173.53 1 (0.01) 173.52
764-47-043 173.53 1 (0.01) 173.52
Slight variances may occur due to rounding
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City of Morgan Hill
Fox Hollow
Preliminary Assessment Roll for Fiscal Year 2024/25
APN Rate Per Unit Units Rounding Adjustment 2024/25 Assessment 764-47-044 173.53 1 (0.01) 173.52
764-47-045 173.53 1 (0.01) 173.52
764-47-046 173.53 1 (0.01) 173.52
764-47-047 173.53 1 (0.01) 173.52
764-47-048 173.53 1 (0.01) 173.52
764-47-049 173.53 1 (0.01) 173.52
764-47-050 173.53 1 (0.01) 173.52
764-47-051 173.53 1 (0.01) 173.52
764-47-052 173.53 1 (0.01) 173.52
764-47-053 173.53 1 (0.01) 173.52
764-47-054 173.53 1 (0.01) 173.52
764-47-055 173.53 1 (0.01) 173.52
764-47-056 173.53 1 (0.01) 173.52
764-47-057 173.53 1 (0.01) 173.52
764-47-058 173.53 1 (0.01) 173.52
764-47-059 173.53 1 (0.01) 173.52
764-47-060 173.53 1 (0.01) 173.52
764-47-061 173.53 1 (0.01) 173.52
764-47-062 173.53 1 (0.01) 173.52
764-47-063 173.53 1 (0.01) 173.52
764-47-064 173.53 1 (0.01) 173.52
764-47-065 173.53 1 (0.01) 173.52
764-47-066 173.53 1 (0.01) 173.52
764-47-067 173.53 1 (0.01) 173.52
764-47-068 173.53 1 (0.01) 173.52
764-47-069 173.53 1 (0.01) 173.52
764-47-070 173.53 1 (0.01) 173.52
764-47-071 173.53 1 (0.01) 173.52
764-47-072 173.53 1 (0.01) 173.52
764-47-073 173.53 1 (0.01) 173.52
764-47-074 173.53 1 (0.01) 173.52
764-47-075 173.53 1 (0.01) 173.52
764-47-079 173.53 1 (0.01) 173.52
75 Accounts 75 ($0.75) $13,014.00
Slight variances may occur due to rounding
Copyright © 2013 by NBS 03/27/2024 03:39:45PM

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City of Morgan Hill
Hamilton Square
Preliminary Assessment Roll for Fiscal Year 2024/25
APN Rate Per Unit Units Rounding Adjustment 2024/25 Assessment 767-36-044 $425.00 1 $0.00 $425.00
767-36-045 425.00 1 0.00 425.00
767-36-046 425.00 1 0.00 425.00
767-36-047 425.00 1 0.00 425.00
767-36-048 425.00 1 0.00 425.00
767-36-049 425.00 1 0.00 425.00
767-36-050 425.00 1 0.00 425.00
767-36-051 425.00 1 0.00 425.00
767-36-052 425.00 1 0.00 425.00
767-36-053 425.00 1 0.00 425.00
767-36-054 425.00 1 0.00 425.00
767-36-055 425.00 1 0.00 425.00
767-36-056 425.00 1 0.00 425.00
767-36-057 425.00 1 0.00 425.00
767-36-058 425.00 1 0.00 425.00
767-36-059 425.00 1 0.00 425.00
767-36-060 425.00 1 0.00 425.00
767-36-061 425.00 1 0.00 425.00
767-36-062 425.00 1 0.00 425.00
767-36-063 425.00 1 0.00 425.00
767-36-064 425.00 1 0.00 425.00
767-36-065 425.00 1 0.00 425.00
767-36-066 425.00 1 0.00 425.00
767-36-068 425.00 1 0.00 425.00
767-36-069 425.00 1 0.00 425.00
767-36-070 425.00 1 0.00 425.00
767-36-071 425.00 1 0.00 425.00
767-36-072 425.00 1 0.00 425.00
767-36-073 425.00 1 0.00 425.00
767-36-074 425.00 1 0.00 425.00
767-36-075 425.00 1 0.00 425.00
767-36-076 425.00 1 0.00 425.00
767-36-077 425.00 1 0.00 425.00
767-36-078 425.00 1 0.00 425.00
767-36-079 425.00 1 0.00 425.00
767-36-080 425.00 1 0.00 425.00
767-36-081 425.00 1 0.00 425.00
767-36-082 425.00 1 0.00 425.00
38 Accounts 38 $0.00 $16,150.00
Slight variances may occur due to rounding
Copyright © 2013 by NBS 03/27/2024 03:39:45PM

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City of Morgan Hill
Jackson Meadows #6
Preliminary Assessment Roll for Fiscal Year 2024/25
APN Rate Per Unit Units Rounding Adjustment 2024/25 Assessment 817-26-047 $108.00 1 $0.00 $108.00
817-26-048 108.00 1 0.00 108.00
817-26-049 108.00 1 0.00 108.00
817-26-066 108.00 1 0.00 108.00
817-26-067 108.00 1 0.00 108.00
817-26-068 108.00 1 0.00 108.00
817-26-069 108.00 1 0.00 108.00
817-26-070 108.00 1 0.00 108.00
817-26-071 108.00 1 0.00 108.00
817-26-072 108.00 1 0.00 108.00
817-26-073 108.00 1 0.00 108.00
817-26-075 108.00 1 0.00 108.00
817-26-076 108.00 1 0.00 108.00
817-26-077 108.00 1 0.00 108.00
817-26-078 108.00 1 0.00 108.00
817-26-079 108.00 1 0.00 108.00
817-26-080 108.00 1 0.00 108.00
817-26-081 108.00 1 0.00 108.00
817-26-082 108.00 1 0.00 108.00
817-26-083 108.00 1 0.00 108.00
817-26-084 108.00 1 0.00 108.00
817-26-085 108.00 1 0.00 108.00
817-26-086 108.00 1 0.00 108.00
817-26-087 108.00 1 0.00 108.00
817-26-088 108.00 1 0.00 108.00
817-26-089 108.00 1 0.00 108.00
817-26-090 108.00 1 0.00 108.00
817-26-091 108.00 1 0.00 108.00
817-26-092 108.00 1 0.00 108.00
817-26-093 108.00 1 0.00 108.00
817-26-095 108.00 1 0.00 108.00
817-26-096 108.00 1 0.00 108.00
817-26-097 108.00 1 0.00 108.00
817-26-098 108.00 1 0.00 108.00
817-26-099 108.00 1 0.00 108.00
817-26-100 108.00 1 0.00 108.00
817-26-101 108.00 1 0.00 108.00
817-26-102 108.00 1 0.00 108.00
817-26-103 108.00 1 0.00 108.00
817-26-104 108.00 1 0.00 108.00
817-26-105 108.00 1 0.00 108.00
817-26-106 108.00 1 0.00 108.00
Slight variances may occur due to rounding
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City of Morgan Hill
Jackson Meadows #6
Preliminary Assessment Roll for Fiscal Year 2024/25
APN Rate Per Unit Units Rounding Adjustment 2024/25 Assessment 817-26-107 108.00 1 0.00 108.00
817-26-108 108.00 1 0.00 108.00
817-26-109 108.00 1 0.00 108.00
817-26-110 108.00 1 0.00 108.00
817-26-111 108.00 1 0.00 108.00
817-26-112 108.00 1 0.00 108.00
817-26-113 108.00 1 0.00 108.00
817-26-114 108.00 1 0.00 108.00
817-26-115 108.00 1 0.00 108.00
817-26-116 108.00 1 0.00 108.00
817-26-117 108.00 1 0.00 108.00
817-26-118 108.00 1 0.00 108.00
817-26-119 108.00 1 0.00 108.00
817-26-120 108.00 1 0.00 108.00
817-26-122 108.00 1 0.00 108.00
817-26-123 108.00 1 0.00 108.00
817-26-124 108.00 1 0.00 108.00
817-26-125 108.00 1 0.00 108.00
817-26-126 108.00 1 0.00 108.00
817-26-127 108.00 1 0.00 108.00
817-26-129 108.00 1 0.00 108.00
817-26-130 108.00 1 0.00 108.00
817-26-131 108.00 1 0.00 108.00
817-26-132 108.00 1 0.00 108.00
817-26-133 108.00 1 0.00 108.00
817-26-134 108.00 1 0.00 108.00
817-26-135 108.00 1 0.00 108.00
817-26-136 108.00 1 0.00 108.00
70 Accounts 70 $0.00 $7,560.00
Slight variances may occur due to rounding
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City of Morgan Hill
Jackson Meadows #7
Preliminary Assessment Roll for Fiscal Year 2024/25
APN Rate Per Unit Units Rounding Adjustment 2024/25 Assessment 817-70-001 $100.00 1 $0.00 $100.00
817-70-002 100.00 1 0.00 100.00
817-70-003 100.00 1 0.00 100.00
817-70-004 100.00 1 0.00 100.00
817-70-005 100.00 1 0.00 100.00
817-70-006 100.00 1 0.00 100.00
817-70-007 100.00 1 0.00 100.00
817-70-008 100.00 1 0.00 100.00
817-70-009 100.00 1 0.00 100.00
817-70-017 100.00 1 0.00 100.00
10 Accounts 10 $0.00 $1,000.00
Slight variances may occur due to rounding
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City of Morgan Hill
La Grande Estates
Preliminary Assessment Roll for Fiscal Year 2024/25
APN Rate Per Unit Units Rounding Adjustment 2024/25 Assessment 767-45-032 $88.00 1 $0.00 $88.00
767-45-033 88.00 1 0.00 88.00
767-45-034 88.00 1 0.00 88.00
767-45-037 88.00 1 0.00 88.00
767-45-038 88.00 1 0.00 88.00
767-45-039 88.00 1 0.00 88.00
767-45-040 88.00 1 0.00 88.00
767-45-041 88.00 1 0.00 88.00
767-45-042 88.00 1 0.00 88.00
767-45-043 88.00 1 0.00 88.00
767-45-044 88.00 1 0.00 88.00
767-45-045 88.00 1 0.00 88.00
767-45-046 88.00 1 0.00 88.00
767-45-047 88.00 1 0.00 88.00
767-45-048 88.00 1 0.00 88.00
767-45-049 88.00 1 0.00 88.00
767-45-050 88.00 1 0.00 88.00
767-45-051 88.00 1 0.00 88.00
767-45-052 88.00 1 0.00 88.00
767-45-053 88.00 1 0.00 88.00
767-45-054 88.00 1 0.00 88.00
767-45-055 88.00 1 0.00 88.00
767-45-056 88.00 1 0.00 88.00
767-45-057 88.00 1 0.00 88.00
767-45-058 88.00 1 0.00 88.00
767-45-059 88.00 1 0.00 88.00
767-45-060 88.00 1 0.00 88.00
767-45-061 88.00 1 0.00 88.00
767-45-062 88.00 1 0.00 88.00
767-45-063 88.00 1 0.00 88.00
767-45-064 88.00 1 0.00 88.00
767-45-065 88.00 1 0.00 88.00
32 Accounts 32 $0.00 $2,816.00
Slight variances may occur due to rounding
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City of Morgan Hill
Lacrosse/Gera
Preliminary Assessment Roll for Fiscal Year 2024/25
APN Rate Per Unit Units Rounding Adjustment 2024/25 Assessment 767-46-001 $50.00 1 $0.00 $50.00
767-46-002 50.00 1 0.00 50.00
767-46-003 50.00 1 0.00 50.00
767-46-004 50.00 1 0.00 50.00
767-46-005 50.00 1 0.00 50.00
767-46-006 50.00 1 0.00 50.00
767-46-007 50.00 1 0.00 50.00
767-46-008 50.00 1 0.00 50.00
767-46-009 50.00 1 0.00 50.00
767-46-010 50.00 1 0.00 50.00
767-46-011 50.00 1 0.00 50.00
767-46-012 50.00 1 0.00 50.00
767-46-013 50.00 1 0.00 50.00
767-46-014 50.00 1 0.00 50.00
767-46-015 50.00 1 0.00 50.00
767-46-018 50.00 1 0.00 50.00
767-46-019 50.00 1 0.00 50.00
767-46-020 50.00 1 0.00 50.00
767-46-021 50.00 1 0.00 50.00
767-46-022 50.00 1 0.00 50.00
767-46-023 50.00 1 0.00 50.00
767-46-024 50.00 1 0.00 50.00
767-46-025 50.00 1 0.00 50.00
767-46-026 50.00 1 0.00 50.00
24 Accounts 24 $0.00 $1,200.00
Slight variances may occur due to rounding
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City of Morgan Hill
Llagas/Obata
Preliminary Assessment Roll for Fiscal Year 2024/25
APN Rate Per Unit Units Rounding Adjustment 2024/25 Assessment 764-23-032 $450.00 1 $0.00 $450.00
764-23-033 450.00 1 0.00 450.00
764-23-034 450.00 1 0.00 450.00
764-23-035 450.00 1 0.00 450.00
764-23-036 450.00 1 0.00 450.00
5 Accounts 5 $0.00 $2,250.00
Slight variances may occur due to rounding
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City of Morgan Hill
Llagas Creek
Preliminary Assessment Roll for Fiscal Year 2024/25
APN Rate Per Unit Units Rounding Adjustment 2024/25 Assessment 764-49-002 $233.67 1 ($0.01) $233.66
764-49-003 233.67 1 (0.01) 233.66
764-49-004 233.67 1 (0.01) 233.66
764-49-005 233.67 1 (0.01) 233.66
764-49-006 233.67 1 (0.01) 233.66
764-49-007 233.67 1 (0.01) 233.66
764-49-008 233.67 1 (0.01) 233.66
764-49-009 233.67 1 (0.01) 233.66
764-49-010 233.67 1 (0.01) 233.66
764-49-011 233.67 1 (0.01) 233.66
764-49-012 233.67 1 (0.01) 233.66
764-49-013 233.67 1 (0.01) 233.66
764-49-014 233.67 1 (0.01) 233.66
764-49-015 233.67 1 (0.01) 233.66
764-49-016 233.67 1 (0.01) 233.66
764-49-017 233.67 1 (0.01) 233.66
764-49-018 233.67 1 (0.01) 233.66
764-49-019 233.67 1 (0.01) 233.66
764-49-020 233.67 1 (0.01) 233.66
764-49-021 233.67 1 (0.01) 233.66
764-49-022 233.67 1 (0.01) 233.66
764-49-023 233.67 1 (0.01) 233.66
764-49-024 233.67 1 (0.01) 233.66
764-49-025 233.67 1 (0.01) 233.66
764-49-026 233.67 1 (0.01) 233.66
764-50-001 233.67 1 (0.01) 233.66
764-50-002 233.67 1 (0.01) 233.66
764-50-003 233.67 1 (0.01) 233.66
764-50-004 233.67 1 (0.01) 233.66
764-50-005 233.67 1 (0.01) 233.66
764-50-006 233.67 1 (0.01) 233.66
764-50-007 233.67 1 (0.01) 233.66
764-51-001 233.67 1 (0.01) 233.66
764-51-004 233.67 1 (0.01) 233.66
764-51-005 233.67 1 (0.01) 233.66
764-51-010 233.67 1 (0.01) 233.66
764-51-011 233.67 1 (0.01) 233.66
764-51-012 233.67 1 (0.01) 233.66
764-51-013 233.67 1 (0.01) 233.66
764-51-014 233.67 1 (0.01) 233.66
764-51-015 233.67 1 (0.01) 233.66
764-52-001 233.67 1 (0.01) 233.66
Slight variances may occur due to rounding
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City of Morgan Hill
Llagas Creek
Preliminary Assessment Roll for Fiscal Year 2024/25
APN Rate Per Unit Units Rounding Adjustment 2024/25 Assessment 764-52-002 233.67 1 (0.01) 233.66
764-52-003 233.67 1 (0.01) 233.66
764-52-004 233.67 1 (0.01) 233.66
764-52-005 233.67 1 (0.01) 233.66
764-52-006 233.67 1 (0.01) 233.66
764-52-008 233.67 1 (0.01) 233.66
764-52-009 233.67 1 (0.01) 233.66
764-52-010 233.67 1 (0.01) 233.66
764-52-011 233.67 1 (0.01) 233.66
764-52-012 233.67 1 (0.01) 233.66
764-52-013 233.67 1 (0.01) 233.66
764-52-014 233.67 1 (0.01) 233.66
764-52-015 233.67 1 (0.01) 233.66
764-52-016 233.67 1 (0.01) 233.66
764-52-017 233.67 1 (0.01) 233.66
764-52-018 233.67 1 (0.01) 233.66
764-52-019 233.67 1 (0.01) 233.66
764-52-020 233.67 1 (0.01) 233.66
764-52-021 233.67 1 (0.01) 233.66
764-52-022 233.67 1 (0.01) 233.66
764-52-023 233.67 1 (0.01) 233.66
764-52-024 233.67 1 (0.01) 233.66
764-52-025 233.67 1 (0.01) 233.66
764-52-026 233.67 1 (0.01) 233.66
764-52-027 233.67 1 (0.01) 233.66
764-52-028 233.67 1 (0.01) 233.66
764-53-003 233.67 1 (0.01) 233.66
764-53-004 233.67 1 (0.01) 233.66
764-53-005 233.67 1 (0.01) 233.66
71 Accounts 71 ($0.71) $16,589.86
Slight variances may occur due to rounding
Copyright © 2013 by NBS 03/27/2024 03:39:45PM

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City of Morgan Hill
Mill Creek
Preliminary Assessment Roll for Fiscal Year 2024/25
APN Rate Per Unit Units Rounding Adjustment 2024/25 Assessment 767-47-001 $285.00 1 $0.00 $285.00
767-47-002 285.00 1 0.00 285.00
767-47-003 285.00 1 0.00 285.00
767-47-004 285.00 1 0.00 285.00
767-47-005 285.00 1 0.00 285.00
767-47-006 285.00 1 0.00 285.00
767-47-007 285.00 1 0.00 285.00
767-47-008 285.00 1 0.00 285.00
767-47-009 285.00 1 0.00 285.00
767-47-010 285.00 1 0.00 285.00
767-47-011 285.00 1 0.00 285.00
767-47-012 285.00 1 0.00 285.00
767-47-013 285.00 1 0.00 285.00
767-47-014 285.00 1 0.00 285.00
767-47-015 285.00 1 0.00 285.00
767-47-016 285.00 1 0.00 285.00
767-47-017 285.00 1 0.00 285.00
767-47-018 285.00 1 0.00 285.00
767-47-019 285.00 1 0.00 285.00
767-47-020 285.00 1 0.00 285.00
767-47-021 285.00 1 0.00 285.00
767-47-022 285.00 1 0.00 285.00
767-47-023 285.00 1 0.00 285.00
767-47-029 285.00 1 0.00 285.00
767-47-030 285.00 1 0.00 285.00
767-47-031 285.00 1 0.00 285.00
767-47-032 285.00 1 0.00 285.00
767-47-033 285.00 1 0.00 285.00
767-47-034 285.00 1 0.00 285.00
767-47-035 285.00 1 0.00 285.00
767-47-036 285.00 1 0.00 285.00
767-47-037 285.00 1 0.00 285.00
767-47-038 285.00 1 0.00 285.00
767-47-039 285.00 1 0.00 285.00
767-47-040 285.00 1 0.00 285.00
767-47-041 285.00 1 0.00 285.00
767-47-042 285.00 1 0.00 285.00
767-47-043 285.00 1 0.00 285.00
767-47-044 285.00 1 0.00 285.00
767-47-045 285.00 1 0.00 285.00
767-47-046 285.00 1 0.00 285.00
767-47-047 285.00 1 0.00 285.00
Slight variances may occur due to rounding
Copyright © 2013 by NBS 03/27/2024 03:39:45PM

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City of Morgan Hill
Mill Creek
Preliminary Assessment Roll for Fiscal Year 2024/25
APN Rate Per Unit Units Rounding Adjustment 2024/25 Assessment 767-47-048 285.00 1 0.00 285.00
767-47-049 285.00 1 0.00 285.00
767-47-050 285.00 1 0.00 285.00
767-47-051 285.00 1 0.00 285.00
767-47-052 285.00 1 0.00 285.00
767-47-053 285.00 1 0.00 285.00
767-47-054 285.00 1 0.00 285.00
767-47-055 285.00 1 0.00 285.00
767-47-057 285.00 1 0.00 285.00
767-47-058 285.00 1 0.00 285.00
767-47-059 285.00 1 0.00 285.00
767-47-060 285.00 1 0.00 285.00
767-47-061 285.00 1 0.00 285.00
767-47-062 285.00 1 0.00 285.00
767-47-063 285.00 1 0.00 285.00
767-47-064 285.00 1 0.00 285.00
767-47-065 285.00 1 0.00 285.00
767-47-066 285.00 1 0.00 285.00
767-47-067 285.00 1 0.00 285.00
767-47-068 285.00 1 0.00 285.00
767-47-069 285.00 1 0.00 285.00
767-47-070 285.00 1 0.00 285.00
767-47-071 285.00 1 0.00 285.00
767-47-072 285.00 1 0.00 285.00
767-47-073 285.00 1 0.00 285.00
767-47-074 285.00 1 0.00 285.00
767-47-075 285.00 1 0.00 285.00
767-47-076 285.00 1 0.00 285.00
767-47-077 285.00 1 0.00 285.00
767-47-078 285.00 1 0.00 285.00
767-47-079 285.00 1 0.00 285.00
767-47-080 285.00 1 0.00 285.00
767-47-081 285.00 1 0.00 285.00
767-47-082 285.00 1 0.00 285.00
767-47-083 285.00 1 0.00 285.00
767-47-084 285.00 1 0.00 285.00
767-47-085 285.00 1 0.00 285.00
767-47-086 285.00 1 0.00 285.00
767-47-087 285.00 1 0.00 285.00
767-47-088 285.00 1 0.00 285.00
767-47-089 285.00 1 0.00 285.00
767-47-090 285.00 1 0.00 285.00
Slight variances may occur due to rounding
Copyright © 2013 by NBS 03/27/2024 03:39:45PM

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City of Morgan Hill
Mill Creek
Preliminary Assessment Roll for Fiscal Year 2024/25
APN Rate Per Unit Units Rounding Adjustment 2024/25 Assessment 84 Accounts 84 $0.00 $23,940.00
Slight variances may occur due to rounding
Copyright © 2013 by NBS 03/27/2024 03:39:45PM

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City of Morgan Hill
Oak Creek I, II, III
Preliminary Assessment Roll for Fiscal Year 2024/25
APN Rate Per Unit Units Rounding Adjustment 2024/25 Assessment 779-51-001 $425.00 1 $0.00 $425.00
779-51-002 425.00 1 0.00 425.00
779-51-003 425.00 1 0.00 425.00
779-51-004 425.00 1 0.00 425.00
779-51-005 425.00 1 0.00 425.00
779-51-006 425.00 1 0.00 425.00
779-51-007 425.00 1 0.00 425.00
779-51-008 425.00 1 0.00 425.00
779-51-009 425.00 1 0.00 425.00
779-51-010 425.00 1 0.00 425.00
779-51-011 425.00 1 0.00 425.00
779-51-012 425.00 1 0.00 425.00
779-51-013 425.00 1 0.00 425.00
779-51-014 425.00 1 0.00 425.00
779-51-015 425.00 1 0.00 425.00
779-51-016 425.00 1 0.00 425.00
779-51-017 425.00 1 0.00 425.00
779-51-018 425.00 1 0.00 425.00
779-51-019 425.00 1 0.00 425.00
779-51-020 425.00 1 0.00 425.00
779-51-021 425.00 1 0.00 425.00
779-51-022 425.00 1 0.00 425.00
779-51-023 425.00 1 0.00 425.00
779-51-024 425.00 1 0.00 425.00
779-51-030 425.00 1 0.00 425.00
779-51-031 425.00 1 0.00 425.00
779-51-032 425.00 1 0.00 425.00
779-51-033 425.00 1 0.00 425.00
779-51-034 425.00 1 0.00 425.00
779-51-035 425.00 1 0.00 425.00
779-51-036 425.00 1 0.00 425.00
779-51-037 425.00 1 0.00 425.00
779-51-038 425.00 1 0.00 425.00
779-51-039 425.00 1 0.00 425.00
779-51-040 425.00 1 0.00 425.00
779-51-041 425.00 1 0.00 425.00
779-51-042 425.00 1 0.00 425.00
779-51-043 425.00 1 0.00 425.00
779-51-044 425.00 1 0.00 425.00
779-51-045 425.00 1 0.00 425.00
779-51-046 425.00 1 0.00 425.00
779-51-047 425.00 1 0.00 425.00
Slight variances may occur due to rounding
Copyright © 2013 by NBS 03/27/2024 03:39:45PM

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City of Morgan Hill
Oak Creek I, II, III
Preliminary Assessment Roll for Fiscal Year 2024/25
APN Rate Per Unit Units Rounding Adjustment 2024/25 Assessment 779-51-048 425.00 1 0.00 425.00
779-51-049 425.00 1 0.00 425.00
779-51-050 425.00 1 0.00 425.00
779-51-051 425.00 1 0.00 425.00
779-51-052 425.00 1 0.00 425.00
779-51-053 425.00 1 0.00 425.00
779-51-054 425.00 1 0.00 425.00
779-52-004 425.00 1 0.00 425.00
779-52-005 425.00 1 0.00 425.00
779-52-006 425.00 1 0.00 425.00
779-52-007 425.00 1 0.00 425.00
779-52-008 425.00 1 0.00 425.00
779-52-009 425.00 1 0.00 425.00
779-52-010 425.00 1 0.00 425.00
779-52-011 425.00 1 0.00 425.00
779-52-012 425.00 1 0.00 425.00
779-52-013 425.00 1 0.00 425.00
779-52-014 425.00 1 0.00 425.00
779-52-015 425.00 1 0.00 425.00
779-52-016 425.00 1 0.00 425.00
779-52-017 425.00 1 0.00 425.00
779-52-018 425.00 1 0.00 425.00
779-52-019 425.00 1 0.00 425.00
779-52-020 425.00 1 0.00 425.00
779-52-021 425.00 1 0.00 425.00
779-52-022 425.00 1 0.00 425.00
779-52-023 425.00 1 0.00 425.00
779-52-024 425.00 1 0.00 425.00
779-52-025 425.00 1 0.00 425.00
779-52-026 425.00 1 0.00 425.00
779-52-027 425.00 1 0.00 425.00
779-52-028 425.00 1 0.00 425.00
779-52-029 425.00 1 0.00 425.00
779-52-030 425.00 1 0.00 425.00
779-52-031 425.00 1 0.00 425.00
779-52-032 425.00 1 0.00 425.00
779-52-033 425.00 1 0.00 425.00
779-52-034 425.00 1 0.00 425.00
779-52-035 425.00 1 0.00 425.00
779-52-037 425.00 1 0.00 425.00
779-52-038 425.00 1 0.00 425.00
779-52-039 425.00 1 0.00 425.00
Slight variances may occur due to rounding
Copyright © 2013 by NBS 03/27/2024 03:39:45PM

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City of Morgan Hill
Oak Creek I, II, III
Preliminary Assessment Roll for Fiscal Year 2024/25
APN Rate Per Unit Units Rounding Adjustment 2024/25 Assessment 779-52-040 425.00 1 0.00 425.00
779-52-041 425.00 1 0.00 425.00
779-52-047 425.00 1 0.00 425.00
779-52-055 425.00 1 0.00 425.00
779-52-056 425.00 1 0.00 425.00
779-52-057 425.00 1 0.00 425.00
779-52-058 425.00 1 0.00 425.00
779-52-059 425.00 1 0.00 425.00
779-52-060 425.00 1 0.00 425.00
779-52-061 425.00 1 0.00 425.00
779-52-062 425.00 1 0.00 425.00
779-52-063 425.00 1 0.00 425.00
779-52-064 425.00 1 0.00 425.00
779-52-065 425.00 1 0.00 425.00
779-52-066 425.00 1 0.00 425.00
779-52-067 425.00 1 0.00 425.00
779-52-068 425.00 1 0.00 425.00
779-52-069 425.00 1 0.00 425.00
779-52-070 425.00 1 0.00 425.00
779-52-071 425.00 1 0.00 425.00
779-52-072 425.00 1 0.00 425.00
779-52-073 425.00 1 0.00 425.00
779-52-074 425.00 1 0.00 425.00
779-52-075 425.00 1 0.00 425.00
779-52-076 425.00 1 0.00 425.00
779-52-077 425.00 1 0.00 425.00
779-52-078 425.00 1 0.00 425.00
779-52-079 425.00 1 0.00 425.00
779-52-080 425.00 1 0.00 425.00
779-52-081 425.00 1 0.00 425.00
779-52-082 425.00 1 0.00 425.00
779-52-083 425.00 1 0.00 425.00
779-52-084 425.00 1 0.00 425.00
779-52-085 425.00 1 0.00 425.00
779-52-086 425.00 1 0.00 425.00
119 Accounts 119 $0.00 $50,575.00
Slight variances may occur due to rounding
Copyright © 2013 by NBS 03/27/2024 03:39:45PM

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City of Morgan Hill
Rosehaven
Preliminary Assessment Roll for Fiscal Year 2024/25
APN Rate Per Unit Units Rounding Adjustment 2024/25 Assessment 817-10-005 $400.00 1 $0.00 $400.00
817-10-006 400.00 1 0.00 400.00
817-10-007 400.00 1 0.00 400.00
817-10-008 400.00 1 0.00 400.00
817-10-010 400.00 1 0.00 400.00
817-10-011 400.00 2 0.00 800.00
817-10-012 400.00 1 0.00 400.00
817-10-013 400.00 1 0.00 400.00
817-10-014 400.00 1 0.00 400.00
817-10-015 400.00 1 0.00 400.00
817-10-016 400.00 1 0.00 400.00
817-10-017 400.00 1 0.00 400.00
817-10-018 400.00 1 0.00 400.00
817-10-019 400.00 1 0.00 400.00
817-10-020 400.00 1 0.00 400.00
817-10-021 400.00 2 0.00 800.00
817-10-022 400.00 1 0.00 400.00
817-10-023 400.00 1 0.00 400.00
817-10-024 400.00 1 0.00 400.00
817-10-025 400.00 1 0.00 400.00
817-10-026 400.00 2 0.00 800.00
817-10-027 400.00 1 0.00 400.00
817-10-028 400.00 1 0.00 400.00
817-10-029 400.00 1 0.00 400.00
24 Accounts 27 $0.00 $10,800.00
Slight variances may occur due to rounding
Copyright © 2013 by NBS 03/27/2024 03:39:45PM

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City of Morgan Hill
Sandalwood
Preliminary Assessment Roll for Fiscal Year 2024/25
APN Rate Per Unit Units Rounding Adjustment 2024/25 Assessment 728-11-027 $450.00 1 $0.00 $450.00
728-11-028 450.00 1 0.00 450.00
728-11-029 450.00 1 0.00 450.00
728-11-030 450.00 1 0.00 450.00
728-11-031 450.00 1 0.00 450.00
728-11-032 450.00 1 0.00 450.00
728-11-033 450.00 1 0.00 450.00
728-11-034 450.00 1 0.00 450.00
728-11-035 450.00 1 0.00 450.00
728-11-036 450.00 1 0.00 450.00
728-11-037 450.00 1 0.00 450.00
11 Accounts 11 $0.00 $4,950.00
Slight variances may occur due to rounding
Copyright © 2013 by NBS 03/27/2024 03:39:45PM

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City of Morgan Hill
Sparhawk
Preliminary Assessment Roll for Fiscal Year 2024/25
APN Rate Per Unit Units Rounding Adjustment 2024/25 Assessment 764-31-025 $354.76 1 $0.00 $354.76
764-31-026 354.76 1 0.00 354.76
764-31-027 354.76 1 0.00 354.76
764-31-028 354.76 1 0.00 354.76
764-31-029 354.76 1 0.00 354.76
764-31-030 354.76 1 0.00 354.76
764-31-031 354.76 1 0.00 354.76
764-31-032 354.76 1 0.00 354.76
764-31-033 354.76 1 0.00 354.76
764-31-034 354.76 1 0.00 354.76
764-31-035 354.76 1 0.00 354.76
764-31-036 354.76 1 0.00 354.76
764-31-037 354.76 1 0.00 354.76
764-31-038 354.76 1 0.00 354.76
764-31-039 354.76 1 0.00 354.76
764-31-040 354.76 1 0.00 354.76
764-31-041 354.76 1 0.00 354.76
764-31-042 354.76 1 0.00 354.76
18 Accounts 18 $0.00 $6,385.68
Slight variances may occur due to rounding
Copyright © 2013 by NBS 03/27/2024 03:39:46PM

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City of Morgan Hill
Stone Creek
Preliminary Assessment Roll for Fiscal Year 2024/25
APN Rate Per Unit Units Rounding Adjustment 2024/25 Assessment 726-06-016 $388.46 1 $0.00 $388.46
726-06-017 388.46 1 0.00 388.46
726-06-018 388.46 1 0.00 388.46
726-06-019 388.46 1 0.00 388.46
726-06-020 388.46 1 0.00 388.46
726-06-021 388.46 1 0.00 388.46
726-06-022 388.46 1 0.00 388.46
726-06-023 388.46 1 0.00 388.46
726-06-024 388.46 1 0.00 388.46
726-06-025 388.46 1 0.00 388.46
726-06-026 388.46 1 0.00 388.46
726-06-027 388.46 1 0.00 388.46
726-06-028 388.46 1 0.00 388.46
726-06-029 388.46 1 0.00 388.46
726-06-030 388.46 1 0.00 388.46
726-06-034 388.46 1 0.00 388.46
726-06-035 388.46 1 0.00 388.46
726-06-036 388.46 1 0.00 388.46
726-06-037 388.46 1 0.00 388.46
726-06-038 388.46 1 0.00 388.46
726-06-044 388.46 1 0.00 388.46
726-06-045 388.46 1 0.00 388.46
726-06-046 388.46 1 0.00 388.46
726-06-047 388.46 1 0.00 388.46
726-06-048 388.46 1 0.00 388.46
726-06-049 388.46 1 0.00 388.46
726-06-050 388.46 1 0.00 388.46
726-06-051 388.46 1 0.00 388.46
726-06-052 388.46 1 0.00 388.46
726-06-053 388.46 1 0.00 388.46
726-06-054 388.46 1 0.00 388.46
726-06-055 388.46 1 0.00 388.46
726-06-056 388.46 1 0.00 388.46
726-06-057 388.46 1 0.00 388.46
726-06-058 388.46 1 0.00 388.46
35 Accounts 35 $0.00 $13,596.10
Slight variances may occur due to rounding
Copyright © 2013 by NBS 03/27/2024 03:39:46PM

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City of Morgan Hill
Sunnyside/Stonegate
Preliminary Assessment Roll for Fiscal Year 2024/25
APN Rate Per Unit Units Rounding Adjustment 2024/25 Assessment 773-31-034 $375.00 1 $0.00 $375.00
773-31-035 375.00 1 0.00 375.00
773-31-036 375.00 1 0.00 375.00
773-31-037 375.00 1 0.00 375.00
773-31-038 375.00 1 0.00 375.00
773-31-039 375.00 1 0.00 375.00
773-31-040 375.00 1 0.00 375.00
773-31-043 375.00 1 0.00 375.00
773-31-044 375.00 1 0.00 375.00
773-31-045 375.00 1 0.00 375.00
10 Accounts 10 $0.00 $3,750.00
Slight variances may occur due to rounding
Copyright © 2013 by NBS 03/27/2024 03:39:45PM
748 ($2.10) $203,071.96 745 Total Accounts

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City of Morgan Hill Landscape Assessment District No. 1 Engineer’s Report Fiscal Year 2024/25 18

7. HISTORICAL ASSESSMENT RATES
The historical assessment rates per Zone are identified on the following pages.

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City of Morgan Hill
Landscape Assessment District No. 1
Actual Historical Assessment Rates Per Zone
Zone Belle Estates
Chang/
Bertelone
Conte
Gardens
Diana
Estates
Fox Hollow/
Murphy Sp.

Hamilton
Square
Jackson
Meadows
#6
Jackson
Meadows
#7
La Grande
Estates
Lacrosse/
Gera
Annexation Number 93-03 93-05 92-10 94-01 Original 94-03 93-06 91-03 95-03 91-04 Original Rate $502.22 $1,215.00 $477.82 $139.39 $106.15 $425.54 $108.10 $314.58 $88.00 $142.99 Unit Count 36 8 11 64 75 38 70 10 32 24
1991/92 - - - $139.39 - - - $314.58 - $142.991992/93 - - - - - - - - - - 1993/94 - - - 69.80 - - - 77.35 - 8.931994/95 - - - 69.80 $106.15 - - 77.35 - 8.931995/96 $502.00 $1,215.00 $285.98 54.14 79.92 $425.54 $108.10 88.66 - 8.93 1996/97 71.00 8.93 477.82 21.94 49.11 214.08 76.04 194.70 - 8.931997/98 71.00 8.93 477.82 21.94 49.11 214.08 76.04 194.70 - 8.931998/99 71.00 8.93 477.82 21.94 49.11 214.08 76.04 194.70 - 8.931999/00 147.81 8.93 477.82 81.03 49.11 399.71 108.10 314.50 $88.00 8.93 2000/01 147.81 8.93 477.82 81.03 49.11 399.71 108.10 314.50 88.00 8.93 2001/02 147.80 8.92 477.82 54.80 49.10 399.70 86.38 314.50 88.00 8.92 2002/03 147.80 8.92 477.82 70.00 101.10 399.70 104.18 314.50 88.00 8.92 2003/04 175.00 8.92 477.82 80.00 101.10 399.70 104.18 314.50 88.00 8.92 2004/05 180.00 8.92 477.82 80.00 101.10 399.70 108.10 314.50 88.00 8.92 2005/06 180.00 94.92 477.82 105.00 141.10 399.70 108.10 314.50 88.00 8.92 2006/07 180.00 94.92 477.82 105.00 141.10 399.70 108.10 314.50 88.00 8.92 2007/08 194.00 94.92 477.82 135.00 141.10 399.70 108.10 314.50 88.00 8.92 2008/09 234.00 94.92 477.82 139.39 149.69 425.54 108.10 314.50 88.00 130.00 2009/10 234.00 200.00 477.82 139.39 149.69 425.54 108.10 314.50 88.00 130.00 2010/11 234.00 300.00 477.82 139.39 149.69 425.54 108.10 314.50 88.00 130.00 2011/12 282.00 400.00 477.82 139.39 168.48 425.54 108.10 314.50 88.00 50.00 2012/13 282.00 400.00 477.82 139.39 173.53 425.54 98.10 140.00 88.00 50.00 2013/14 320.00 500.00 477.82 139.39 173.53 425.54 98.10 140.00 88.00 50.00 2014/15 320.00 500.00 477.82 139.39 173.53 425.54 98.10 140.00 88.00 50.00 2015/16 320.00 550.00 400.00 139.39 173.53 425.54 108.00 140.00 88.00 50.00 2016/17 320.00 550.00 400.00 139.39 173.53 425.54 108.00 100.00 88.00 50.00 2017/18 320.00 550.00 400.00 139.39 173.53 325.00 108.00 100.00 88.00 50.002018/19 320.00 550.00 365.00 139.39 173.53 325.00 108.00 100.00 88.00 50.002019/20 320.00 550.00 365.00 139.39 173.53 325.00 108.00 100.00 88.00 50.00 2020/21 320.00 550.00 365.00 139.39 173.53 325.00 108.00 100.00 88.00 50.00 2021/22 320.00 550.00 365.00 139.39 173.53 325.00 108.00 100.00 88.00 50.002022/23 310.00 550.00 365.00 139.39 173.53 325.00 108.00 100.00 88.00 50.002023/24 310.00 550.00 365.00 139.39 173.53 425.00 108.00 100.00 88.00 50.00

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City of Morgan Hill
Landscape Assessment District No. 1
Actual Historical Assessment Rates Per Zone
Zone
Annexation Number
Original Rate
Unit Count
1991/921992/931993/941994/951995/961996/971997/981998/991999/002000/012001/022002/032003/042004/052005/062006/072007/082008/092009/102010/112011/122012/132013/142014/152015/162016/17 2017/182018/192019/202020/212021/222022/232023/24
Llagas Creek
Estates
Llagas/
Obata Mill Creek Oak Creek
Parsons
Corner Rose Haven Sandalwood Sparhawk Stone Creek
Sunnyside/
Stone Gate
91-05 91-07 93-01 94-04 95-02 95-01 96-01 91-06 94-02 91-01 $140.84 $629.16 $186.82 $453.82 $568.32 $488.47 $192.39 $174.77 $306.66 $449.40 71 5 84 119 10 27 11 18 35 10
$140.85 $629.16 - - - - - $174.77 - $449.40 - - - - - - - - - - 19.13 335.37 - - - - - 93.03 - 15.05

19.13 15.05 - - - - - 308.84 - 15.0476.60 15.05 $186.82 $453.82 - - - 226.46 $306.66 15.0459.54 8.93 64.57 47.67 $568.32 $488.47 - 147.33 146.66 8.9359.54 8.93 64.57 47.67 457.40 189.73 - 147.33 146.66 8.9359.54 8.93 64.57 337.09 457.40 189.73 - 147.33 146.66 8.93 140.85 8.93 95.83 320.52 457.40 189.73 $192.36 147.33 275.00 8.93 140.85 8.93 158.64 245.16 457.40 189.73 192.36 147.33 275.00 8.93105.86 8.92 158.64 150.00 457.40 189.72 192.36 147.32 275.00 8.92140.00 8.92 182.64 250.00 300.00 300.00 192.36 147.32 275.00 275.00140.00 8.92 120.00 300.00 300.00 300.00 192.36 147.32 275.00 192.50140.00 8.92 120.00 300.00 300.00 300.00 192.36 147.32 306.66 192.50190.00 53.92 138.00 300.00 430.00 300.00 192.36 202.32 306.66 332.50190.00 53.92 138.00 300.00 430.00 300.00 192.36 202.32 306.66 332.50190.00 53.92 168.00 300.00 460.00 330.00 192.36 208.38 306.66 332.50195.70 53.92 186.82 300.00 460.00 370.00 192.36 214.64 306.66 332.50195.70 53.92 186.82 300.00 460.00 370.00 192.36 214.64 306.66 332.50195.70 53.92 186.82 300.00 460.00 370.00 192.36 214.64 306.66 332.50195.70 53.92 186.82 350.00 250.00 450.00 192.36 241.58 306.66 332.50195.70 53.92 186.82 350.00 250.00 450.00 192.36 248.82 388.46 332.50233.67 53.92 186.82 350.00 250.00 450.00 192.36 248.82 388.46 412.50233.67 53.92 186.82 350.00 250.00 450.00 192.36 248.82 388.46 412.50233.67 143.92 186.82 350.00 250.00 450.00 192.36 248.82 388.46 375.00233.67 143.92 186.82 350.00 250.00 488.00 192.36 248.82 388.46 375.00 233.67 143.92 186.82 350.00 250.00 488.00 192.36 248.82 388.46 375.00233.67 400.00 186.82 350.00 250.00 400.00 450.00 248.82 388.46 375.00233.67 400.00 186.82 350.00 0.00 400.00 450.00 248.82 388.46 375.00233.67 400.00 285.00 350.00 0.00 400.00 450.00 248.82 388.46 375.00233.67 400.00 285.00 350.00 0.00 400.00 450.00 248.82 388.46 375.00233.67 400.00 285.00 425.00 0.00 400.00 450.00 334.00 388.46 375.00233.67 450.00 285.00 425.00 0.00 400.00 450.00 334.00 388.46 375.00

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RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

MORGAN HILL, INITIATING PROCEEDINGS FOR THE

LEVY AND COLLECTION OF ASSESSMENTS FOR THE

CITY OF MORGAN HILL LANDSCAPE ASSESSMENT
DISTRICT NO. 1 FOR FISCAL YEAR 2024/25
WHEREAS, the City Council of the Morgan Hill (hereafter referred to as the “City Council”) previously completed its proceedings in accordance with and pursuant to the Landscaping and Lighting Act of 1972, Part 2, Division 15 of the California Streets and Highways Code (commencing with Section 22500) (the “Act”) to establish the City of Morgan Hill (the “City”) Fox Hollow/Murphy Springs Landscape Assessment District and has by previous resolution changed the name to the City of Morgan Hill Landscape Assessment District No. 1 (the “Assessment District”); and,
WHEREAS, the City has retained NBS for the purpose of assisting with the annual levy of the Assessment District, and to prepare and file an Annual Report.

NOW, THEREFORE BE IT RESOLVED, DETERMINED, AND ORDERED BY THE COUNCIL, AS FOLLOWS:

1. Annual Report: The City Council hereby orders NBS to prepare and file with the City Clerk the Annual Report concerning the levy and collection of assessments within the Assessment District for the fiscal year commencing July 1, 2024 and ending June 30, 2025.

2. New Improvements or Changes to Existing Improvements: There are no changes to existing improvements, nor are there any items being added to the list of improvements previously approved at the formation of the Assessment District.

3. Reserve Targets: In May 2011, reserve targets for each subarea were recommended and approved by the City Council. For Fiscal Year 2024/25 due to inflation costs, the reserve targets for each subarea are recommended to be doubled. By doubling the reserve targets the subareas will have a higher fund balance to support inflationary costs, maintenance repairs, and/or general improvements to the district. The increase of allocation to reserve targets will not increase the assessment rate above the maximum allowable assessment rate.

PASSED, APPROVED AND ADOPTED by the City Council of Morgan Hill at a regular meeting held on the 24th day of April 2024.

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

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APPROVED: ATTEST:
___________________________________ ____________________________________ Mark Turner, Mayor Michelle Bigelow, City Clerk

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CERTIFICATION
I, Michelle Bigelow, City Clerk of the City of Morgan Hill, California, do hereby certify that the foregoing is a true and correct copy of Resolution No. ____, adopted by the City Council at the meeting held on April 24, 2024.

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

DATE:______________________ _______________________________________ Michelle Bigelow, City Clerk

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RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

MORGAN HILL, APPROVING THE ANNUAL REPORT FOR

THE CITY OF MORGAN HILL LANDSCAPE ASSESSMENT
DISTRICT NO. 1 FOR FISCAL YEAR 2024/25
WHEREAS, the City Council of the City of Morgan Hill (hereafter referred to as the “City Council”) previously completed its proceedings in accordance with and pursuant to the Landscaping and Lighting Act of 1972, Part 2, Division 15 of the California Streets and Highways Code (commencing with Section 22500) (the “Act”) to establish the City of Morgan Hill’s (the “City”) Fox Hollow/Murphy Springs Landscape Assessment District and has by previous resolution changed the name to the City of Morgan Hill Landscape Assessment District No. 1 (the “Assessment District”); and,
WHEREAS, the City has retained NBS for the purpose of assisting with the annual levy of the Assessment District, and to prepare and file an Annual Report; and WHEREAS, the City Council has, by previous resolution, ordered NBS to prepare and file such Annual Report; and
WHEREAS, NBS has prepared and filed such Annual Report with the City Clerk.

NOW, THEREFORE BE IT RESOLVED, DETERMINED, AND ORDERED BY THE COUNCIL, AS FOLLOWS:

1. Approval of Report: The City Council approves the Annual Report concerning the levy of assessments for the fiscal year commencing July 1, 2024 and ending June 30, 2025.

PASSED, APPROVED AND ADOPTED by the City Council of Morgan Hill at a regular meeting held on the 24th day of April 2024.

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

APPROVED: ATTEST:
___________________________________ ____________________________________ Mark Turner, Mayor Michelle Bigelow, City Clerk

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

DATE:______________________ _______________________________________ Michelle Bigelow, City Clerk

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RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

MORGAN HILL, DECLARING ITS INTENTION TO LEVY

AND COLLECT ASSESSMENTS FOR THE CITY OF
MORGAN HILL LANDSCAPE ASSESSMENT DISTRICT NO. 1
FOR FISCAL YEAR 2024/25
WHEREAS, the City Council of the City of Morgan Hill (hereafter referred to as the “City Council”) previously completed its proceedings in accordance with and pursuant to the Landscaping and Lighting Act of 1972, Part 2, Division 15 of the California Streets and Highways Code (commencing with Section 22500) (the “Act”) to establish the City of Morgan Hill (the “City”) Fox Hollow/Murphy Springs Landscape Assessment District and has by previous resolution changed the name to the City of Morgan Hill Landscape Assessment District No. 1 (the “Assessment District”); and
WHEREAS, the City has retained NBS for the purpose of assisting with the annual levy of the Assessment District, and to prepare and file an Annual Report.

NOW, THEREFORE BE IT RESOLVED, DETERMINED, AND ORDERED BY THE COUNCIL, AS FOLLOWS:

1. Intention: The City Council hereby declares its intention to levy and collect assessments within the Assessment District to pay the costs of the Improvements for the fiscal year commencing July 1, 2024 and ending June 30, 2025. The City Council finds that the public’s best interest requires such action.

2. Improvements: The Improvements include, but are not limited to: ground cover, shrubs, plants and trees, irrigation and drainage systems, graffiti removal, entry monuments, and associated appurtenant facilities. Services provided include all necessary service, operations, administration and maintenance required to keep the above mentioned improvements in a healthy, vigorous and satisfactory condition.

3. Assessment District Boundaries: The boundaries of the Assessment District are as shown by the assessment diagram filed in the office of the City Clerk, which assessment diagram is made a part hereof by reference.

4. Annual Report: Reference is made to the Annual Report prepared by NBS, on file with the City Clerk, for a full and detailed description of the improvements, the boundaries of the Assessment District and the zones therein, and the proposed assessments upon assessable lots and parcels of land within the Assessment District.

5. Notice of Public Hearing: The City Council hereby declares its intention to conduct a Public Hearing concerning the levy of assessments in accordance with Section 22629 of the Act. All objections to the assessment, if any, will be considered by the City Council.

The Public Hearing will be held on Wednesday June 5, 2024 at 6:00 PM or as soon

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thereafter as is feasible in the Council Chambers located at 17555 Peak Avenue, Morgan Hill, CA 95037. The City Council further orders the City Clerk to publish notice of this resolution in accordance with Section 22626 of the Act.

6. Increase of Assessment: The maximum assessment is not proposed to increase from the previous year maximum assessment above what was previously approved by the property owners (as “increased assessment” is defined in Section 54954.6 of the Government Code).

PASSED, APPROVED AND ADOPTED by the City Council of Morgan Hill at a regular meeting held on the 24th day of April 2024.

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

APPROVED: ATTEST:
___________________________________ ____________________________________ Mark Turner, Mayor Michelle Bigelow, City Clerk

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

DATE:___________________ _____________________________________ Michelle Bigelow, City Clerk

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12 CITY COUNCIL STAFF REPORT
MEETING DATE: April 24, 2024
PREPARED BY:

Keri Russell, Maintenance Manager
APPROVED BY: City Manager

HOLD PUBLIC HEARING AND TABULATE BALLOTS FOR SPARHAWK

SUBAREA OF MORGAN HILL LANDSCAPE ASSESSMENT DISTRICT
NUMBER 1

RECOMMENDATION(S)

1. Open public hearing;

2. Accept public input on ballot proceeding;

3. Announce close of public hearing is pending – Any property owner wishing to withdraw or submit their ballot must do so now;

4. Close public hearing;

5. Take a five minute recess for ballot tabulation;

6. Accept verbal report from the City Clerk on Sparhawk ballot tabulation results; and

7. Adopt Resolution A or B certifying the Sparhawk ballot proceeding results.

COUNCIL PRIORITIES, GOALS & STRATEGIES
City Council Ongoing Priorities
Maintaining and Enhancing Infrastructure
2024-2025 Strategic Priorities
Fiscal Sustainability
REPORT NARRATIVE:

The purpose of this report is to:
• Provide the public with a final opportunity to provide the City with input on the special ballot proceeding needed to increase the maximum level of assessment in the Sparhawk Subarea of Landscape Assessment District Number 1; • Call an official close to the submission of ballots;
• Tabulate the ballots; and
• Certify the results of the ballot proceeding.

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12 The City has been administering the various subareas contained in Morgan Hill Landscape Assessment District Number 1 since the 1990’s. Each of these subareas function as a “mini-district” in which the revenues garnered through the annual assessments must only be used to pay the administrative and direct service costs for that subarea. The fund balance for Sparhawk has decreased over the years and is in danger of going into the negative due to inflationary factors on the expense side and minimal increases in assessments over the last ten years.

As a result of Proposition 218, the assessment level cannot be increased above the maximum permitted level without an affirmative vote of the majority of the voting property owners.

City staff have met with some of the residents from Sparhawk Subarea. During that meeting, the residents in attendance indicated that they would prefer to vote to increase their maximum assessment level in order to maintain their level of service rather than a reduction to services.

The City Council approved the resolution of the intent needed to start this process at its meeting on February 21, 2024. Shortly after, City staff mailed the required public notice and ballot to all property owners in the Sparhawk Subarea informing them about the ballot proceeding and their options to respond. The mailing included a special return envelope and the City Clerk has been receiving sealed ballots in the intervening weeks.

These ballots will now be opened and tabulated at the close of tonight’s public hearing.

Once the ballots have been tabulated, the City Clerk will announce the results of the tabulation and the Council may adopt a resolution certifying the results of the ballot proceeding. There are two versions of the resolution:
• Version A – Shall be adopted if the final tabulation determines that a majority of property owners who submitted ballots support an increase in the maximum assessment rate.
• Version B – Shall be adopted if the final tabulation does not determine that a majority of property owners who submitted ballots support an increase in the maximum assessment rate.

COMMUNITY ENGAGEMENT:

Staff recently held a meeting with Sparhawk residents to discuss the budget. City staff also sent letters informing residents of the funding issues and inviting them to participate in the meeting or to connect with City staff by phone or email. Staff proposed an increase in the maximum assessment as the alternative would be a reduction in services. Residents present at the meeting supported the increase.

ALTERNATIVE ACTIONS:

There are no alternative actions for the Council at this point in the process.

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12 PRIOR CITY COUNCIL AND COMMISSION ACTIONS:

The Council approved the resolution of intent needed to start this process at its meeting on February 21, 2024.

FISCAL AND RESOURCE IMPACT:

This item does not have a fiscal impact as the ballot proceeding will only raise the legally permissible maximum assessment limit, it will not actually increase the assessment. The actual annual assessments for the entire District will be set by a separate Council action. Administering the District is included in the work program of the Public Services Department.

CEQA (California Environmental Quality Act):

Not a project
The actions in these resolutions are fiscal activities which do not directly involve a physical impact on the environment.

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RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF MORGAN HILL CERTIFYING THE RESULTS OF THE

BALLOT TABULATION FOR THE ASSESSMENT BALLOT

PROCEEDING TO SUBMIT TO THE QUALIFIED

PROPERTY OWNERS THE QUESTION OF THE

PROPOSED INCREASE IN THE MAXIMUM ASSESSMENT

RATE FOR THE SPARHAWK SUBAREA OF LANDSCAPE
MAINTENANCE ASSESSMENT DISTRICT NUMBER 1
BEGINNING IN FISCAL YEAR 2024/25
The City Council of the City of Morgan Hill (hereafter referred to as the “City Council”) does resolve as follows:

WHEREAS, the City Council has previously formed Landscape Assessment District No. 1 (District), previously the Fox Hollow/Murphy Springs Landscape Assessment District, to levy and collect assessments pursuant to the provisions of the Landscape and Lighting Act of 1972, Part 2, Division 15 of the California Streets and Highways Code (commencing with Section 22500) (hereafter referred to as the “Act”) that provides for the levy and collection of assessments by the County of Santa Clara for the City of Morgan Hill to pay the maintenance and services of all improvements and facilities related thereto;
WHEREAS, City representatives have attempted to meet with residents of the Sparhawk Subarea of Landscape Assessment District No. 1 which is experiencing significant funding issues for regular maintenance of the Subarea;
WHEREAS, the City Council adopted a Resolution of Intent on February 21, 2024 approving a supplemental engineer’s report and initiating an assessment ballot proceeding on the question of increasing the maximum amount of the assessments in the Sparhawk Subarea; WHEREAS, immediately thereafter, the City mailed a notice and ballot to all property owners within the Sparhawk Subarea; and
WHEREAS, the City Clerk has tabulated the ballots submitted in compliance with State law.

NOW, THEREFORE BE IT RESOLVED, DETERMINED, AND ORDERED BY

THE CITY COUNCIL OF THE CITY OF MORGAN HILL, PURSUANT TO CHAPTER 2, SECTION 22587 OF THE ACT AND CALIFORNIA CONSTITUTIONAL ARTICLES XIIIC AND XIIID, AS FOLLOWS:

Results: The City Clerk has tabulated the ballots properly and legally submitted on the question of increasing the maximum assessment allowed in the Sparhawk Subarea and determined that a majority protest of “No” votes has not been submitted. Without majority protest, the maximum assessment rate for the Sparhawk Subarea of the District is increased beginning in the 2024-2025 Fiscal Year to $500. A 3% escalator per year beginning in fiscal year 2024/25 will also be implemented.

Resolution
A

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City of Morgan Hill
Resolution No.

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PASSED, APPROVED AND ADOPTED by the City Council of the City of Morgan Hill at a regular meeting held on the 24th day of April, 2024.

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

APPROVED: ATTEST:
____________________________ ___ ________________________________ MARK TURNER, Mayor MICHELLE BIGELOW, City Clerk
 CERTIFICATION 
I, Michelle Bigelow, City Clerk of the City of Morgan Hill, California, do hereby certify that the foregoing is a true and correct copy of Resolution No. XX-XXX, adopted by the City Council at a regular meeting held on April 24, 2024.

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

DATE: _____________________ ___________________________________ MICHELLE BIGELOW, City Clerk

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RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF MORGAN HILL CERTIFYING THE RESULTS OF THE

BALLOT TABULATION FOR THE ASSESSMENT BALLOT

PROCEEDING TO SUBMIT TO THE QUALIFIED

PROPERTY OWNERS THE QUESTION OF THE

PROPOSED INCREASE IN THE MAXIMUM ASSESSMENT

NOW, THEREFORE BE IT RESOLVED, DETERMINED, AND ORDERED BY

THE CITY COUNCIL OF THE CITY OF MORGAN HILL, PURSUANT TO CHAPTER 2, SECTION 22587 OF THE ACT AND CALIFORNIA CONSTITUTIONAL ARTICLES XIIIC AND XIIID, AS FOLLOWS:

Results: The City Clerk has tabulated the ballots properly and legally submitted on the question of increasing the maximum assessment allowed in the Sparhawk Subarea and determined that a majority protest of “No” votes has been submitted. With majority protest, the maximum assessment rate for the Sparhawk Subarea of the District is not increased.

PASSED, APPROVED AND ADOPTED by the City Council of the City of Morgan Hill at a regular meeting held on the 24th day of April, 2024.

Resolution
B

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City of Morgan Hill
Resolution No.

Page 2 of 2 ends

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

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

DATE: _____________________ ___________________________________ MICHELLE BIGELOW, City Clerk

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13 CITY COUNCIL STAFF REPORT
MEETING DATE: April 24, 2024
PREPARED BY:

Tanya Carothers, Environmental Services Administrator
APPROVED BY: City Manager

APPROVE SOLID WASTE MANAGEMENT RATE ADJUSTMENT FOR
2024

RECOMMENDATION(S)
Adopt resolution approving an adjustment in the maximum allowable solid waste charges effective July 1, 2024.

COUNCIL PRIORITIES, GOALS & STRATEGIES
City Council Ongoing Priorities
Protecting the Environment
2024-2025 Strategic Priorities
Fiscal Sustainability
REPORT NARRATIVE:

The purpose of this report is to present Recology South Valley's (Recology) request for an adjustment in the maximum allowable solid waste rates charged within the City for City Council consideration and action.

One of the provisions of Recology's franchise agreement has historically been that service rate increases are based upon changes in the Consumer Price Index and the price of natural compressed gas. Under the current franchise agreement which was approved in 2022, rate amendments are now based on changes in the Consumer Price Index and price of compressed natural gas, in addition to cost of waste disposal, recycling processing, and accrued exceptional costs. The rate adjustment requested this year when accounting for these factors is a 5.07% increase. For descriptions of the service rate calculation components, see table below.

In accordance with their franchise agreement with the City, Recology submitted the attached timely request for a rate adjustment (Attachment 1) and staff has determined that Recology's rate application follows the formula prescribed in the franchise agreement. For residential customers, this 5.07% adjustment applied to the current, basic residential service rate of $42.01 is $2.13 per month. With the approval of this adjustment, the maximum permitted monthly charge for flatland customers will be $44.14 and the maximum permitted monthly charge for hillside customers will be $48.02. For a business getting a 3-yard dumpster serviced once per week, the

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13 maximum allowable monthly rate will rise from $462.15 to $485.58. As always, customers eligible for lower rates on their PG&E bill can also obtain discounted solid waste services by showing Recology their discounted PG&E bill.

It is recommended that the Council adopt the resolution (Attachment 2) increasing the maximum allowed rates for solid waste management services starting July 1, 2024.

SERVICE RATE CALCULATION COMPONENTS
Component Description
Consumer
Price Index
The Consumer Price Index (CPI) is used to adjust the portion of rates that the parties have agreed represent costs for labor, capitalized equipment, equipment parts, repair and maintenance, facilities, utilities, insurance, administration and other necessary and reasonable costs.

Fuel This component is used to adjust the portion of rates that the parties have agreed represents the cost of fuel used by the hauler for its operations.

Solid Waste
Disposal
This component is used to adjust the portion of rates that the parties have agreed represents the cost for disposing of solid waste at the designated disposal facility.

Recyclables
Processing
This component is used to adjust the portion of rates that the parties have agreed represents the cost of processing recyclable materials delivered to a recycling processing facility.

Exceptional
Costs
This component is the amount calculated for the hauler to recover costs incurred during the previous year for additional services. These services could include, but are not limited to:
• Cost of Performance Audit
• Cost of compost provided by the hauler, as requested annually by the City • Cost of City-requested homeless encampment and other cleanup events • Cost of City-requested disposal vouchers
Exceptional Costs also include Implementation Funds, which are funds requested for collection in the upcoming year to cover City activities and programs implemented for compliance with Local, Regional, State, or Federal permits, laws, and/or regulations that are related to the collection and/or management of trash or solid waste. Total Implementation Funds requested for 2024/25 total $560,355, or $663,142 when including 15.5% City Fees, and will result in a 1.50% delta service rate increase after accounting for last year's Implementation Funds of $449,704, which residents are already accustomed to paying. These Implementation Funds will go toward City staff resources for compliance with SB 1383 Mandatory Organic Waste Recycling, installation of trash capture devices for compliance with the State Trash Amendments, City staffing and associated equipment to support trash capture device inspections and maintenance, and to cover costs related to the Household Hazardous Waste (HHW) Program.

COMMUNITY ENGAGEMENT:

The community will be informed about the rate amendment via notices in the bills they

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13 receive from Recology.

ALTERNATIVE ACTIONS:

Not applicable as the City is contractually obligated to approve this amendment to the maximum rates for the normal annual adjustment.

PRIOR CITY COUNCIL AND COMMISSION ACTIONS:

The City Council has evaluated solid waste rate adjustments annually for decades. In 2022, the City Council approved the current franchise agreement which changed the formula for the annual process. In 2023, the City utilized the new formula for the annual process to adjust rates.

FISCAL AND RESOURCE IMPACT:

The City's annual franchise fee revenues will increase by approximately $105,000 under the proposed rate adjustments. The increase will be incorporated into the City's budget and financial forecast. Franchise fee is a revenue source of the General Fund (010).

Processing this application is an anticipated and included activity in the work program of the Public Services Department.

CEQA (California Environmental Quality Act):

This action will not result in physical changes to the environment, and it is not a project under CEQA.

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RESOLUTION NO. 24-XXX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF MORGAN HILL APPROVING AN ADJUSTMENT IN
SOLID WASTE COLLECTION RATES FOR 2024
WHEREAS, the City of Morgan Hill (the "City") has approved a franchise agreement with Recology South Valley (“Recology”) that establishes a methodology for regulating the maximum rates that Recology can charge to Morgan Hill customers; and WHEREAS, Recology has submitted an application for a rate adjustment that substantially complies with the methodology in the Agreement; and
WHEREAS, the cost of living, as indicated by the consumer price index, the cost of solid waste disposal, and the cost of recyclables processing have changed during the past year causing an increase in the cost of providing service; and
WHEREAS, the City has requested collection of funds to support City efforts related to compliance with Local, Regional, State, or Federal permits, laws, and/or regulations that are associated with the collection and/or management of trash or solid wastes; and WHEREAS, Recology has agreed to provide notice in their next garbage billing explaining the rate adjustment process; and
WHEREAS, further reasons supporting the rate adjustment described in, and that is the subject of, this Resolution are set forth in detail in that certain City Council Staff Report entitled "Approve Solid Waste Management Rate Adjustment for 2024" submitted for City Council consideration at its meeting of April 24, 2024, submitted to the City Council by the City Manager (the “Staff Report”), the contents of which Staff Report are incorporated herein by this reference; and
WHEREAS, the activities allowed under this Resolution do not constitute a project under the provisions of California Environmental Quality Act of 1970; and WHEREAS,the consideration by City Council of the adoption of this Resolution has been duly noticed pursuant to applicable laws and has been placed upon the City Council Meeting Agenda on the date set forth in the Staff Report, or to such date that the City Council may have continued or deferred consideration of this Resolution, and on such date the City Council conducted a duly noticed public meeting at which the City Council provided members of the public an opportunity to comment and be heard and considered any and all testimony and other evidence provided in connection with the adoption of this Resolution; and WHEREAS, the City Council determines that adoption of this Resolution is in the public interest.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MORGAN HILL DOES HEREBY FIND, DETERMINE, RESOLVE AND ORDER AS FOLLOWS:

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Section 1. Recitals. The City Council does hereby find, determine and resolve that all of the foregoing recitals are true and correct.

Section 2. Approval and Authorization. The City Council does further resolve, order and/or direct that Recology South Valley is hereby authorized to adjust their rates up to the maximum levels listed on the rate schedule attached hereto as Exhibit A.

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

PASSED AND ADOPTED by the City Council of the City of Morgan Hill at its meeting held on this 24th day of April 2024 by the following vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

APPROVED: ATTEST:
_______________________________ _________________________________ MARK TURNER, Mayor MICHELLE BIGELOW, City Clerk
 CERTIFICATION 
I, Michelle Bigelow, City Clerk of the City of Morgan Hill, California, do hereby certify that the foregoing is a true and correct copy of Resolution No. 24-XXX adopted by the City Council at the meeting held on the 24th day of April 2024.

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

DATE: _____________________ ___________________________________ Michelle Bigelow, CITY CLERK

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EXHIBIT A
See Following Pages

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RECOLOGY SOUTH VALLEY

CITY OF MORGAN HILL
RATES EFFECTIVE JULY 1, 2024
Current Add New
DESCRIPTION Rates 5.07% Rates
Residential Rates
BASIC SINGLE FAMILY 42.01 2.13 44.14
SGL FAM - NO STREET SWEEPING 41.49 2.10 43.59
HILLSIDE RESIDENTIAL 45.70 2.32 48.02
HILLSIDE RESIDENTIAL - NO SWEEPING 45.06 2.28 47.34
LOW INCOME 33.76 1.71 35.47
LOW INCOME - NO ST SWEEPING 33.34 1.69 35.03

EX YW CONTAINER RENT
BULKY MATERIAL (1-3 ITEMS) 55.94 2.84 58.78
BULKY MATERIAL (EACH EXTRA ITEM) 22.35 1.13 23.48
SIDE/BACKYARD SERV 16.77 0.85 17.62
SIDE/BACKYARD SERV Disabled FREE FREE FREE
TOTER RENTAL 7.10 0.36 7.46
RETURNED TRIP COLLECTION 43.77 2.22 45.99
Commercial Rates
1 CAN COMM (32 GALLON) 25.70 1.30 27.00
2 CANS COMM (64 GALLON) 42.12 2.14 44.26
3 CANS COMM (96 GALLON) 58.64 2.97 61.61
4 CANS COMM (128 GALLON) 75.16 3.81 78.97
5 CANS COMM (160 GALLON) 91.66 4.65 96.31
6 CANS COMM (192 GALLON) 108.21 5.49 113.70
7 CANS COMM (224 GALLON) 124.64 6.32 130.96
8 CANS COMM (256 GALLON) 141.12 7.15 148.27
9 CANS COMM (288 GALLON) 157.63 7.99 165.62
10 CANS COMM (320 GALLON) 174.12 8.83 182.95
1 CAN COMM (32 GALLON) w/cart 32.80 1.66 34.46
2 CANS COMM (64 GALLON) w/cart 49.22 2.50 51.72
3 CANS COMM (96 GALLON) w/cart 65.74 3.33 69.07

ORGANICS
32 GALLON 1 X WEEK 20.57 1.04 21.61
32 GALLON 2 X WEEK 39.00 1.98 40.98
32 GALLON 3 X WEEK 57.42 2.91 60.33
32 GALLON 4 X WEEK 75.84 3.85 79.69
32 GALLON 5 X WEEK 94.28 4.78 99.06
32 GALLON CONTAMINATED Recycle and Organics 43.77 2.22 45.99 64 GALLON 1 X WEEK 33.70 1.71 35.41
64 GALLON 2 X WEEK 63.90 3.24 67.14
64 GALLON 3 X WEEK 94.09 4.77 98.86
64 GALLON 4 X WEEK 124.30 6.30 130.60
64 GALLON 5 X WEEK 154.49 7.83 162.32
64 GALLON CONTAMINATED Recycle and Organics 43.77 2.22 45.99 96 GALLON 1 X WEEK 46.90 2.38 49.28
96 GALLON 2 X WEEK 88.94 4.51 93.45
96 GALLON 3 X WEEK 130.95 6.64 137.59
96 GALLON 4 X WEEK 172.98 8.77 181.75
96 GALLON 5 X WEEK 215.00 10.90 225.90
96 GALLON CONTAMINATED Recycle and Organics 43.77 2.22 45.99 Morgan Hill Rate Application - Effective 7-1-24 mk2 Exhibit A 4/5/2024 8:54 AM

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RECOLOGY SOUTH VALLEY

CITY OF MORGAN HILL
RATES EFFECTIVE JULY 1, 2024
Current Add New
DESCRIPTION Rates 5.07% Rates
Commercial Rates

GARBAGE
1 YD 1 XWEEK 220.14 11.16 231.30
1 YD 2 XWEEK 417.40 21.16 438.56
1 YD3XWEEK 614.62 31.16 645.78
1 YD4XWEEK 811.89 41.16 853.05
1 YD5XWEEK 1,009.11 51.16 1,060.27
1 YD6XWEEK 1,204.89 61.09 1,265.98
2YD 1 XWEEK 319.05 16.18 335.23
2YD2XWEEK 604.92 30.67 635.59
2YD 3XWEEK 890.77 45.16 935.93
2YD4XWEEK 1,176.65 59.66 1,236.31
2YD 5XWEEK 1,462.45 74.15 1,536.60
2YD 6XWEEK 1,746.22 88.53 1,834.75
1/2 3 YD 1 X WEEK (Grandfather) 231.06 11.71 242.77
3 YD 1 XWEEK 462.15 23.43 485.58
3YD2XWEEK 880.07 44.62 924.69
3YD3XWEEK 1,298.11 65.81 1,363.92
3YD4XWEEK 1,715.98 87.00 1,802.98
3YD5XWEEK 2,133.93 108.19 2,242.12
3YD6XWEEK 2,551.87 129.38 2,681.25
4 YD 1 XWEEK 597.99 30.32 628.31
4 YD2XWEEK 1,136.44 57.62 1,194.06
4 YD3XWEEK 1,674.94 84.92 1,759.86
4 YD4XWEEK 2,213.45 112.22 2,325.67
4 YD5XWEEK 2,751.90 139.52 2,891.42
4 YD6XWEEK 3,290.39 166.82 3,457.21
6 YD 1 XWEEK 893.47 45.30 938.77
6YD2XWEEK 1,709.89 86.69 1,796.58
6YD3XWEEK 2,526.32 128.08 2,654.40
6YD4XWEEK 3,342.78 169.48 3,512.26
6YD5XWEEK 4,159.24 210.87 4,370.11
6YD6XWEEK 4,975.66 252.27 5,227.93
SPECIAL COLLECTION 36.72 1.86 38.58

ORGANICS
1 YD 1XWEEK 176.11 8.93 185.04
1 YD2XWEEK 333.90 16.93 350.83
1 YD3XWEEK 491.69 24.93 516.62
1 YD4XWEEK 649.51 32.93 682.44
1 YDSXWEEK 807.29 40.93 848.22
1 YD6XWEEK 963.91 48.87 1,012.78
1 YD CONTAMINATED Recycle and Organics 55.04 2.79 57.83 2YD 1XWEEK 255.25 12.94 268.19
2YD2XWEEK 483.93 24.54 508.47
2YD3XWEEK 712.61 36.13 748.74
2YD4XWEEK 941.32 47.72 989.04
2YD5XWEEK 1,169.97 59.32 1,229.29
2YD6XWEEK 1,396.98 70.83 1,467.81
2 YD CONTAMINATED Recycle and Organics 79.77 4.04 83.81 3YD 1XWEEK 369.73 18.75 388.48
3YD2XWEEK 704.07 35.70 739.77
3YD3XWEEK 1,038.48 52.65 1,091.13
3YD4XWEEK 1,372.79 69.60 1,442.39
3YD5XWEEK 1,707.15 86.55 1,793.70
3YD6XWEEK 2,041.48 103.50 2,144.98
3 YD CONTAMINATED Recycle and Organics 115.54 5.86 121.40 Morgan Hill Rate Application - Effective 7-1-24 mk2 Exhibit A 4/5/2024 8:54 AM

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RECOLOGY SOUTH VALLEY

CITY OF MORGAN HILL
RATES EFFECTIVE JULY 1, 2024
Current Add New
DESCRIPTION Rates 5.07% Rates
4YD 1XWEEK 478.40 24.25 502.65
4 YD2XWEEK 909.17 46.09 955.26
4 YD3XWEEK 1,339.95 67.94 1,407.89
4 YD4XWEEK 1,770.76 89.78 1,860.54
4 YD5XWEEK 2,201.52 111.62 2,313.14
4 YD6XWEEK 2,632.32 133.46 2,765.78
4 YD CONTAMINATED Recycle and Organics 149.50 7.58 157.08 6YD 1XWEEK 714.78 36.24 751.02
6YD2XWEEK 1,367.91 69.35 1,437.26
6YD3XWEEK 2,021.07 102.47 2,123.54
6YD4XWEEK 2,674.22 135.58 2,809.80
6YD5XWEEK 3,327.39 168.70 3,496.09
6YD6XWEEK 3,980.53 201.81 4,182.34
6 YD CONTAMINATED Recycle and Organics 223.37 11.32 234.69 SPECIAL CO LLECTION Per yard 29.36 1.49 30.85
REGULAR COMPACTOR (PER YARD) 58.00 2.94 60.94
RECYCLE COMPACTOR (PER YARD) 34.28 1.74 36.02
SUPER COMPACTOR (PER YARD) 115.97 5.88 121.85
20 YARD DEBRIS BOX 638.33 32.36 670.69
35 YARD DEBRIS BOX 911.92 46.23 958.15
40 YARD DEBRIS BOX 1,063.97 53.94 1,117.91

ORGANICS
20 YARD DEBRIS BOX 510.67 25.89 536.56
35 YARD DEBRIS BOX 729.53 36.99 766.52
40 YARD DEBRIS BOX 851.18 43.15 894.33
Debris Box Contaminated
20 YARD DEBRIS BOX Contaminated 638.33 32.36 670.69
35 YARD DEBRIS BOX Contaminated 911.92 46.23 958.15
40 YARD DEBRIS BOX Contaminated 1,063.97 53.94 1,117.91 Debris Box Return Trip Fee 82.44 4.18 86.62
PERM RENTAL 338.19 17.15 355.34
PERM DISPOSAL (PER YARD) 31.81 1.61 33.42
CARDBOARD COMPACTOR w/ garbage service FREE FREE FREE
20 YARD CARDBOARD w/ garbage service FREE FREE FREE
40 YARD CARDBOARD w/ garbage service FREE FREE FREE
20 YARD OTHER RECYCLABLES 326.29 16.54 342.83
40 YARD OTHER RECYCLABLES 543.86 27.57 571.43
20 YARD DEBRIS BOX HILLSIDE 795.90 40.35 836.25
40 YARD DEBRIS BOX HILLSIDE 1,220.94 61.90 1,282.84
ComQactor Front Loader Service
2 YARD COMPACTOR 1 X WEEK 502.68 25.49 528.17
2 YARD COMPACTOR 2 X WEEK 1,005.34 50.97 1,056.31
2 YARD COMPACTOR 3 X WEEK 1,508.01 76.46 1,584.47
3 YARD COMPACTOR 1 X WEEK 754.02 38.23 792.25
3 YARD COMPACTOR 2 X WEEK 1,508.01 76.46 1,584.47
SuQer ComQactor Front Loader Service
2 YARD COMPACTOR 1 X WEEK 1,005.12 50.96 1,056.08
2 YARD COMPACTOR 2 X WEEK 2,010.22 101.92 2,112.14
2 YARD COMPACTOR 3 X WEEK 3,015.34 152.88 3,168.22
3 YARD COMPACTOR 1 X WEEK 1,507.65 76.44 1,584.09
3 YARD COMPACTOR 2 X WEEK 3,015.34 152.88 3,168.22
SQecial Street SweeQing_
M-F 8:00AM-5:00PM (PER HOUR) 82.44 4.18 86.62
ALL OTHER HOURS (MINIMUM + HOURLY) 549.60 27.86 577.46
Morgan Hill Rate Application - Effective 7-1-24 mk2 Exhibit A 4/5/2024 8:54 AM

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14 CITY COUNCIL STAFF REPORT
MEETING DATE: April 24, 2024
PREPARED BY:

Kim Mancera, Deputy City Clerk
APPROVED BY: City Manager
ADOPT ORDINANCE NO. 2353, NEW SERIES, AUTHORIZING AN

AMENDMENT TO THE CONTRACT BETWEEN THE CITY OF MORGAN

HILL AND THE BOARD OF ADMINISTRATION OF THE CALIFORNIA
PUBLIC EMPLOYEES’ RETIREMENT SYSTEM

RECOMMENDATION(S)
Waive the reading, adopt Ordinance No. 2353, New Series, and declare that said title, which appears on the agenda, shall be determined to have been read by title and further reading waived.

COUNCIL PRIORITIES, GOALS & STRATEGIES
City Council Ongoing Priorities
Fostering a Positive Organizational Culture
2024-2025 Strategic Priorities
Fiscal Sustainability
REPORT NARRATIVE:

On March 6, 2024, the City Council introduced Ordinance No. 2353 New Series by the following roll call vote: AYES: Turner, Librers, Borgioli, Martinez Beltran, Spring; NOES:

None; ABSTAIN: None; ABSENT: None.

During the 2023 negotiations with the Labor Unions, it was agreed that the City would amend the CalPERS contract to allow military service credit to count towards service credit for members in the miscellaneous retirement group. This benefit is currently available for members of the safety retirement group.

Section 21024 Military Service Credit as Public Service A member may elect to purchase up to four years of service credit for any active military or merchant marine service before employment. The benefit applies only to active members while in employment with an employer providing this benefit in its contract.

The process is for the City Council to adopt a Resolution of Intention and introduce the ordinance, amending its contract with the California Public Employees Retirement System (CalPERS). The final ordinance is now returning to the Council for approval and adoption. The effective date of the ordinance will be 30 days following the date of

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14 adoption. The effective date of the CalPERS amendment to the contract will be the pay period beginning May 26, 2024. The amended provision is included in the attached exhibit to the ordinance in Item A.12.e., "Section 21024 (Military Service Credit as Public Service) for local miscellaneous members and local police members only." COMMUNITY ENGAGEMENT:

Inform
ALTERNATIVE ACTIONS:

Not Applicable
PRIOR CITY COUNCIL AND COMMISSION ACTIONS:

On March 6, 2024, the Council adopted the resolution of intention and introduced the ordinance to amend the CalPERS contract.

On May 18, 2022, the Council adopted ordinance 2334, new series, authorizing an amendment to the contract between the City of Morgan Hill and the Board of Administration of the California Public Employees' Retirement System in order to implement the pension cost share provision in accordance with California Government Code section 20516.

FISCAL AND RESOURCE IMPACT:

No immediate cost to the City but potential costs will emerge in future valuations and will be incorporated in the City budget as appropriate.

CEQA (California Environmental Quality Act):

Not a Project- Amendment of the City's contract with CalPERS is an administrative activity that will not have a foreseeable impact on the environment.

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ORDINANCE NO. 2353, NEW SERIES

AN ORDINANCE OF THE CITY OF MORGAN HILL

AUTHORIZING AN AMENDMENT TO THE CONTRACT

BETWEEN THE CITY OF MORGAN HILL AND THE

BOARD OF ADMINISTRATION OF THE CALIFORNIA
PUBLIC EMPLOYEES’ RETIREMENT SYSTEM

THE CITY COUNCIL OF THE CITY OF MORGAN HILL, CALIFORNIA DOES ORDAIN AS FOLLOWS:

SECTION 1: That an amendment to the contract between the City of Morgan Hill and the Board of Administration, California Public Employees' Retirement System is hereby authorized, a copy of said amendment being attached hereto, marked Exhibit, and by such reference made a part hereof as though herein set out in full.

SECTION 2: The City Manager or their designee is authorized, empowered, and directed to execute said amendment for and on behalf of the City of Morgan Hill.

SECTION 3: This ordinance shall take effect thirty (30) days after the date of its passage and adoption. The City Clerk is hereby directed to publish in full or summary this ordinance pursuant to §36933 of the Government Code in a newspaper of general circulation in the City of Morgan Hill.

THE FOREGOING ORDINANCE WAS INTRODUCED AT A MEETING OF THE CITY COUNCIL HELD ON THE 6th DAY OF MARCH, 2024, AND WAS FINALLY ADOPTED AT A MEETING OF THE CITY COUNCIL HELD ON THE 24TH DAY OF APRIL, 2024, AND SAID ORDINANCE WAS DULY PASSED AND ADOPTED IN ACCORDANCE WITH LAW BY THE FOLLOWING VOTE:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

APPROVED: ATTEST:

MARK TURNER, Mayor MICHELLE BIGELOW, City Clerk

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City of Morgan Hill
Ordinance No. 2353, New Series

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 CERTIFICATE OF THE CITY CLERK 

I, MICHELLE BIGELOW, CITY CLERK OF THE CITY OF MORGAN HILL, CALIFORNIA, do hereby certify that the foregoing is a true and correct copy of Ordinance No. 2353, New Series, adopted by the City Council of the City of Morgan Hill, California the meeting held on this 24th day of April, 2024 and has been published pursuant to Government Code.

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

DATE:

MICHELLE BIGELOW, City Clerk

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15 CITY COUNCIL STAFF REPORT
MEETING DATE: April 24, 2024
PREPARED BY:

Chris Ghione, Public Services Director
APPROVED BY: City Manager

APPROVE LEADERSHIP MORGAN HILL PROJECT AT THE

COMMUNITY AND CULTURAL CENTER

RECOMMENDATION(S)

1. Approve Leadership Morgan Hill project at the Community and Cultural Center to improve splash pad area: and

2. Authorize the City Manager to execute agreements as needed with Leadership Morgan Hill and associated contractors to complete the installation.

COUNCIL PRIORITIES, GOALS & STRATEGIES
City Council Ongoing Priorities
Maintaining and Enhancing Infrastructure
Supporting our Youth, Seniors, and Entire Community
2024-2025 Strategic Priorities
Fiscal Sustainability
Community Engagement
Healthy Community
Guiding Documents
Bikeways, Trails, and Recreation Master Plan
REPORT NARRATIVE:

The 2024 Class of Leadership Morgan Hill (LMH) 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 2024 has proposed the development and construction of improvements to the Community and Cultural Center adjacent to the Splash Pad area and Downtown Amphitheater. The proposed improvements include:
• Relocation of existing benches & installation of 5 concrete picnic tables • Planting of 2 new trees, consistent with existing trees • Animal Sculpture

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15 • Freestanding plaque on rock with LMH and sponsor details • Single row of bricks for sponsors, colored to be discreet and match overall aesthetic
The class has prepared a presentation (Attachment 1) which includes location information, renderings, and other information on the proposed project. The proposed design for the area was completely created by the class with input from City staff. It is believed the project will be a significant benefit to the City, through regular use by visitors and to generate revenue through rental of the area. The class has coordinated with the Chamber of Commerce on the project in relation to the Friday Night Music Series, which occurs at the Downtown Amphitheater.

The class intends to raise over $10,000 in funds and provide significant volunteer service to complete this project. To recognize those supporting the project, the Class has proposed installation of engraved pavers next to the project on the border of the grass area.

On April 16, 2024, the Parks and Recreation Commission reviewed and recommended approval of the project.

COMMUNITY ENGAGEMENT:

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

ALTERNATIVE ACTIONS:

As an alternative to approving the project, the Council may choose to approve the project with specific changes and requirements as designated by the Council. The Council could also choose not to approve the project.

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, Monument and Bike Safety signs in 2022, and renovation and artwork additions at the Community Park Stage area in 2023.

FISCAL AND RESOURCE IMPACT:

The installation of the project is not anticipated to create significant ongoing operational expenses. If used as a rental area the City would receive thousands of dollars annually in net revenue.

CEQA (California Environmental Quality Act):

Categorical Exemption

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15 Minor alterations to existing City facilities falls within the CEQA categorical exemption of Class 1, Existing Facilities.

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1 LMH Class of ’24 Project
A p r i l 1 6 , 2 0 2 4

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2 Overview
• Improve existing splash zone at CCC to increase usability and add points of interest • Add seating and surrounding items to improve experience at Friday concert series, family summer splash activities, etc. • Area can be rented by the city for events/parties, offsetting cost Current Future

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3 Project Scope
• Relocation of existing benches & installation of 5 concrete picnic tables • Planting of 2 new trees (London Plane), consistent with existing trees • Animal Sculpture
• Freestanding plaque on rock with LMH and sponsor details • Single row of bricks for sponsors, colored to be discreet and match overall aesthetic

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4 Proposed Layout
Sponsor Bricks

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5 Schedule and Activities
• Project expected completion by 9/2024
• Best case timeline is early August • Ordering & Delivery • Tables – can be delivered by end of July
• Trees – donated locally by Devil Mountain Nursery
• Animal Sculpture – available from nearby vendor • Plaque – stone in possession, 10x14” plaque to be designed/ordered • Installation Activities
• Table and tree installation to be performed by City, funded by class • Plaque, Turtle, and Brick installation to be performed by Pavers by Design

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6 Questions?

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16 CITY COUNCIL STAFF REPORT
MEETING DATE: April 24, 2024
PREPARED BY:

Matt Mahood, Economic Development Director
APPROVED BY: City Manager

INTRODUCE ORDINANCE REPEALING AND REPLACING CHAPTER

5.32 (MASSAGE ESTABLISHMENTS AND MASSAGE
PROFESSIONALS PERMIT REQUIREMENTS) OF TITLE 5 (BUSINESS

LICENSES GENERALLY) ESTABLISHING A PERMITTING

PROCEDURE FOR MASSAGE THERAPY ESTABLISHMENTS AND

SERVICES

RECOMMENDATION(S)

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

2. Introduce new Ordinance replacing Chapter 5.32 (Massage Establishments and Massage Professionals Permit Requirements).

COUNCIL PRIORITIES, GOALS & STRATEGIES
City Council Ongoing Priorities
Enhancing Public Safety
Preserving and Cultivating Public Trust
Guiding Documents
Economic Blueprint
Public Safety Master Plan
REPORT NARRATIVE:

Policy Consideration:

Should the City of Morgan Hill improve the permitting process to require certain qualifications for massage establishments?
Background
The City of Morgan Hill has seen a significant increase in the number of massage businesses within the City. In 2022, the City received complaints related to illegal activity occurring at certain massage establishments in Morgan Hill. Over the last year, the Police Department, Code Compliance, and the Economic Development Department have been working with the City Attorney's Office to evaluate best practices to improve the permitting and regulation of massage establishments in the City of Morgan Hill. To support better oversight of massage establishments, staff recommends the repealing

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16 and replacement of Chapter 5.32 (Massage Establishments and Massage Professionals Permit Requirements) of Title V (Business Licenses Generally) to establish a permitting procedure for massage therapy establishments and services. The proposed changes will establish new permitting guidelines aligned with the California Massage Council and will help the City combat prostitution, human trafficking, and other illegal activity.

Proposed Ordinance
The purpose of the Ordinance amends the permitting process to ensure certain building, sanitation, and operational standards for massage establishment businesses are followed. The new requirements include:
• Thorough background checks for business owners and individual massage therapists, including California Massage Therapy Council (CAMTC) certifications for each therapist.
• Front storefront windows may not be blocked through the use of curtains, blinds, or tints, and must offer visibility into the premises at all times. • The revocation of a massage permit shall result in an immediate cease of operations by the massage establishment and will disqualify the massage owner from being issued a future massage establishment permit in the City of Morgan Hill.
• A final order to revoke a massage permit can result in a moratorium period where no other massage establishment shall be permitted to operate at that location by any person for a period of not less than five years.

The new permitting process would require massage establishment operators to first obtain a Massage Establishment Permit from the Police Department. All establishments are required to obtain a Business License and comply with all applicable laws including but not limited to the City’s building, fire, zoning, and health regulations. Any massage establishment operated, managed, or maintained contrary to the provisions of this policy shall be, and the same is hereby declared to be, unlawful and a public nuisance.

In addition to the new permitting process, to ensure compliance, Code Enforcement and the Police Department will perform regular inspections of the massage establishments.

To ensure new massage establishments currently applying for Business Licenses follow the new regulatory procedure, in March 2024, the City created a new Permits for Massage Establishments Policy outlining the proposed permitting procedure staff proposes to codify in the changes to Chapter 5.32 of the Municipal Code. Economic Development staff issued electronic and paper notices to all establishments and property owners alerting them of the proposed changes and inviting them to participate at the Council hearing.

COMMUNITY ENGAGEMENT:

Inform
On March 20, 2024, the Economic Development team emailed all existing massage establishment owners and shopping center property owners who have an existing massage establishment located within their property. The communication included a

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16 copy of the new administrative policy, the proposed new regulations that may go into effect July 1, 2024, and a copy of the new massage establishment permit application.

On Monday, March 25, 2024, a hard copy of the notice and corresponding documents was also sent via US Mail to the addresses of all existing massage establishments and the property tax assessment addresses of all property owners where a massage establishment is currently operating.

On March 7, 2024, and on April 4, 2024, City Manager Christina Turner included this topic in her City Manager update at the Morgan Hill Chamber Breakfast.

On April 12 and April 19, 2024, information on the proposed ordinance update was included in the City 411 communication.

ALTERNATIVE ACTIONS:

The City Council may choose not to make any changes to Chapter 5.32 of the Municipal Code or may choose to modify staff's recommendations for new permitting process.

PRIOR CITY COUNCIL AND COMMISSION ACTIONS:

On December 5, 2018, the City Council adopted the Massage Establishment Fees.

FISCAL AND RESOURCE IMPACT:

Costs of the permitting and inspection are covered in the initial permit application and renewal fees. These fees are updated every year on July 1st.

CEQA (California Environmental Quality Act):

Not a Project - This is a regulatory action that will not have any foreseeable impact on the environment.

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AN ORDINANCE OF THE CITY OF MORGAN

HILL REPEALING AND REPLACING
CHAPTER 5.32 (MASSAGE ESTABLISHMENTS

AND MASSAGE PROFESSIONALS PERMIT
REQUIREMENTS) OF TITLE 5 (BUSINESS

LICENSES GENERALLY) TO ESTABLISH A

PERMITTING PROCEDURE FOR MASSAGE
THERAPY ESTABLISHMENTS AND SERVICES.

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

Section 1. Chapter 5.32 (Massage Establishments) of Title 5 (Business Licenses Generally) is hereby repealed in its entirety.

Section 2. Chapter 5.32 (Massage Establishments and Massage Professionals Permit Requirements) of Title 5 (Business Licenses Generally) is hereby added as follows:

Chapter 5.32. MASSAGE ESTABLISHMENTS AND MASSAGE PROFESSIONALS

PERMIT REQUIREMENTS

5.32.010. Purpose and intent.

In enacting this chapter, the City Council recognizes that massage therapy is a professional pursuit which can offer the public valuable health and therapeutic services, but that unless properly regulated, the practice of massage therapy and the operation of massage businesses may be associated with unlawful activity and pose a threat to the quality of life in the local community. It is the purpose and intent of this chapter to provide for the orderly regulation of offices and establishments providing massage therapy services, and to prevent and discourage the misuse of massage therapy as a front for human trafficking, prostitution, and related activities in violation of state law, all in the interests of the public health, safety, and welfare, by providing certain minimum building, sanitation, and operation standards for such businesses, and by requiring certain minimum qualifications for the operators and practitioners of such businesses.

It is the further intent of this chapter to streamline local massage therapy permitting procedures, while still facilitating and advancing the ethical practice of massage therapy, by relying upon the uniform statewide regulations enacted by the Legislature in 2008 as Business and Professions Code Sections 4600 et seq., known as the Massage Therapy Act, as subsequently amended, and by restricting the commercial practice of massage in the city to those persons duly certified to practice by the California Massage Therapy Council formed pursuant to those statutes.

5.32.020. Definitions.

For the purpose of this chapter, unless the context clearly requires a different meaning, the words, terms, and phrases set forth in this section shall have the meanings that are given them in this section:

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City of Morgan Hill
Ordinance No. XXX, New Series

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(a) “Authorized massage professional” means a massage professional who is identified in a permit issued pursuant to this chapter as a person employed or retained by a massage establishment to practice massage. (b) “California Massage Therapy Council” or “CAMTC” means the massage therapy organization formed pursuant to Business and Professions Code Section 4600 et seq.
(c) “CAMTC-certified massage professional” means any individual currently certified by the California Massage Therapy Council as a massage therapist or massage practitioner pursuant to Business and Professions Code Section 4600 et seq.
(d) “City Manager” means the city manager of the City of Morgan Hill or his or her designee.
(e) “Compensation” means the payment, loan, advance, donation, contribution, deposit, exchange, or gift of money or anything of value. (f) “Employee” means any person employed by a massage business who may render any service to the business, and who receives any form of compensation from the business, including but not limited to an independent contractor. (g) “Inspector” means the person or persons designated by the city to conduct any inspections required or permitted under this chapter.
(h) “Massage,” “massage therapy,” and/or “bodywork” for purposes of this chapter mean the skillful application of touch, including but not limited to, pressure, stroking, kneading, compression on or movement of the external surfaces of the body by a practitioner to produce increased awareness, relaxation, pain relief, injury rehabilitation, or neuromuscular reeducation.
(i) “Massage establishment” means any business that offers massage therapy, baths or health treatments including, but not limited to, aromatherapy, vapor, shower, electric tub, sponge, hot towels, mineral fermentation, sauna, steam or any other type of bath, involving massages or baths in exchange for compensation. Homebased massage businesses and businesses that provide outcall massage services are also considered to be massage establishments. For purposes of this chapter, the term “massage establishment” may be applied to include establishments which offer or advertise themselves as providing “relaxation” or “tanning” where the essential nature of the interaction between the employee and the customer involves “massage” as defined herein. The terms, names or phrases listed on business license or fictitious name application forms are not necessarily conclusive as to the nature of the business.

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(j) “Massage establishment permit” means a permit to operate a “Massage establishment” as provided in this Chapter.
(k) “Operator” or “massage establishment operator” means any person who is an owner or manager of a massage establishment.
(l) “Outcall massage service” means the engaging in or carrying on of massage therapy for compensation at locations other than a massage establishment at a fixed location.
(m) “Owner” or “massage establishment owner” means any of the following persons:
(1) The sole proprietor of a sole proprietorship operating a massage establishment.
(2) Any general partner of a general or limited partnership that owns a massage establishment.
(3) Any person who has a ten percent or greater ownership interest in a corporation that owns a massage establishment.
(4) Any person who is a member of a limited liability company that owns a massage establishment.
(5) All owners of any other type of business association that owns a massage establishment.
(n) “Patron” means an individual on the premises of a massage establishment for the purpose of receiving massage therapy.
(o) “Person” means any individual, firm, association, partnership, corporation, joint venture, limited liability company, or combination of individuals. (p) “Police Chief” means the chief of police of the City of Morgan Hill or his or her designee charged with the administration of this chapter. (q) “Reception and waiting area” means an area immediately inside the main entry door of the massage establishment dedicated to the reception and waiting of patrons or visitors of the massage establishment and which is not a massage therapy room or otherwise used for the provision of massage therapy services. (r) “Sole proprietorship” means a massage establishment where the owner owns one hundred percent of the business and has one or no other employees or independent contractors.

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(s) “Visitor” means any individual not retained or employed by the massage establishment and not receiving or waiting to receive massage therapy services, but excluding law enforcement personnel or governmental officials performing governmental business.

5.32.030. Business license required.

The requirements of this chapter are in addition to any business license and business license tax requirements imposed pursuant to Chapter 5.04 of this code.

5.32.040. Other permits and authorizations required.

The requirements of this chapter are in addition to any permits or authorizations that may be required under other applicable laws including but not limited to the city’s building, fire, zoning, and health regulations.

5.32.050. Exemptions.

This chapter shall not apply to the following classes of individuals while engaged in the performance of the duties of their respective professions:
(a) Physicians, surgeons, chiropractors, osteopaths, podiatrists, physical therapists, nurses, acupuncturists or any other person licensed to practice any healing art under the provisions of Division 2 (commencing with Section 500) of the Business and Professions Code when engaging in such practice within the scope of his or her license and persons working directly under the supervision of or at the direction of such licensed persons, working at the same location as the licensed person, and administering massage services subject to review or oversight by the licensed person.
(b) Trainers of any amateur, semi-professional, or professional athlete or athletic team, so long as such persons do not practice massage therapy as their primary occupation at any location where they provide such services in the city. (c) Barbers, estheticians, and cosmetologists who are duly licensed under the laws of the State of California, while engaging in practices within the scope of their licenses.
(d) Individuals administering massages or health treatments involving massage to persons participating in single-occurrence athletic, recreational, or educational events such as road races, track meets, triathlons, educational events, or conferences, provided that the event is open to the public or to a significant segment of the public such as employees of sponsoring or participating corporations, and the massage services are provided at the site of the event during, immediately preceding, or immediately following the event.

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(e) Somatic practitioners who use no physical touch of any kind at any time in their practice.
(f) Enrolled students of a school of massage when they are performing massage within the city as part of a formal supervised internship or training program operated by the school, without compensation other than school credit, on the premises of a massage establishment duly authorized to operate pursuant to the terms of this chapter; and provided that the operator of the massage establishment has first notified the Police Chief in writing of the name, residence address, and school of the students and the dates of the trainings.

5.32.060. CAMTC certification required.

It shall be unlawful for any individual to practice massage therapy for compensation within the city unless that individual is a CAMTC-certified massage professional.

5.32.080. Massage establishment permit required—Prohibited conduct. (a) It is unlawful for any person to operate a massage establishment within the city without first obtaining a massage establishment permit from the Police Department of the City of Morgan Hill.
(b) It shall be unlawful for a massage establishment operator to employ or retain any person to practice massage therapy for compensation, or to allow any person to perform massage therapy for compensation on the premises of a massage establishment, unless that person is a CAMTC-certified massage professional and unless that person is identified as an authorized massage professional on the permit issued pursuant to this chapter. For purposes of this chapter, a massage establishment operator “employs or retains” a person to practice massage therapy for compensation when:
(1) That person is a directly paid employee of the massage establishment; or (2) That person’s association with a massage establishment is that of an independent contractor who receives compensation for massage therapy provided to patrons of the massage establishment; or
(3) That person receives a referral of patrons from the massage establishment and, at any time before or after the referral, arranges in any way for compensation to flow to the massage establishment operator. (c) It is unlawful for a massage establishment to operate under any name or conduct business under any designation not specified in the massage establishment permit issued pursuant to this chapter.

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(d) It is unlawful for a massage establishment to continue to operate following the sale or transfer of any interest in the massage establishment to a person who was not identified as an owner in the massage establishment permit application.

5.32.090. Permit application.

The owners of the massage establishment shall file an application for a permit on a form provided by the Police Chief. The application shall be accompanied by the fee established by the city’s fee schedule. Any change in ownership or location requires a new application. The application shall include the following information:
(a) The name, address, and telephone number of the massage establishment. It shall be the responsibility of each owner or operator to notify the city of any intention to rename, change management, or convey the business to another person within 7 days of the change.
(b) The name, date of birth, residence address and telephone number, and business address and telephone number of each owner of the massage establishment. (c) The form of business under which the applicant will be conducting the massage establishment, i.e., corporation, general or limited partnership, limited liability company, or other form and the state of formation. If the applicant is a corporation, the name of the corporation shall be set forth exactly as shown in its articles of incorporation, together with the names and residence addresses of each of its officers, directors, and each shareholder holding more than ten percent of the stock of the corporation. If the applicant is a general or limited partnership, the application shall set forth the name and residence address of each of the partners, including limited partners. If one or more of the partners is a corporation, the provisions of this section pertaining to a corporate applicant shall apply. If the applicant is a limited liability company, the application shall set forth the name and residence address of each of the members. If one or more of the members is a partnership, limited liability company, or corporation, the provisions of this section pertaining to a partnership, limited liability company, or corporate applicant shall apply, as applicable.
(d) The name, address, and telephone number of the owner of the real property upon, in, or from which the certified massage establishment is to be operated. In the event the applicant is not the legal owner of the property, the application shall be accompanied by a copy of any written lease between the applicant and the property owner authorizing use of the premises for a massage establishment, or, alternatively, if there is no written lease, then a written, notarized acknowledgment from the property owner that the property owner has been advised that a massage establishment will be operated by the applicant upon, in, or from the property owner’s property.

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(e) If the massage establishment will be located on a property in a residential or commercial condominium or other common interest development, the applicant shall submit a notarized statement from the homeowner’s association or condominium owner’s association acknowledging that the association has been advised that a massage establishment will be operated by the applicant and that such use of the property is allowed by the property’s covenants, codes, and restrictions.
(f) A description of the proposed massage establishment, including the type of treatments to be administered.
(g) The name and date of birth of each individual who the massage establishment employs or retains to perform massage therapy for compensation, whether on or off the massage establishment premises. It shall be the responsibility of each owner or operator to notify the city within seven days of any change in persons providing massage services and to provide copies of the state massage certification for all such persons to the city prior to such persons providing massage services.
(h) The name of each individual who is regularly employed or retained by the massage establishment to perform services on the premises other than massage therapy, and the nature of their services.
(i) For each individual who the massage establishment does or will employ or retain to perform massage therapy for compensation, whether on or off the massage establishment premises, a color copy of that individual’s current certification from the CAMTC as a certified massage practitioner or certified massage therapist, and a color copy of his or her current CAMTC-issued identification card. (j) For each owner of the massage establishment who is a CAMTC-certified massage professional, a color copy of his or her current certification from the CAMTC as a certified massage practitioner or as a certified massage therapist and a color copy of his or her current CAMTC-issued identification card. (k) For each owner of the massage establishment who is not a CAMTC-certified massage professional, the following information:
(1) Whether any owner of the massage establishment has within the five years immediately preceding the date of application been convicted of any felony in any state.
(2) Whether any owner of the massage establishment is currently required to register under the provisions of Section 290 of the California Penal Code.

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(3) The business, occupation, and employment history of each owner of the massage establishment for five years preceding the date of application, and the inclusive dates of same.
(4) One set of fingerprints to be taken at the permit authority, and any required fee for such fingerprinting shall be paid by the applicant. (l) Provide a complete massage permit history including whether any license or permit has ever been issued to the applicant by any jurisdiction under the provisions of any ordinance or statute governing massage or somatic practice, and as to any such license or permit, the name and address of the issuing authority, the effective dates of such license or permit, whether such license or permit was ever suspended, revoked, withdrawn, or denied; and copies of any documentary materials relating to such suspension, revocation, withdrawal, or denial. (m) Detailed diagram showing the interior floorplan of the premises and depicting all interior rooms. It shall be the responsibility of each owner or operator to notify the city within seven days of any change to the floor plan. Building Code requirements are applicable and interior changes may require a building permit. (m) Such other information as may be required by the permit authority to determine compliance with any other eligibility requirements for issuance of the permit as specified by federal, state, or local law.
(n) A statement that within the last five years the applicant has not failed to comply with a final court order or administrative action of an investigatory agency finding a violation of applicable federal, state and local wage and hour laws, including, but not limited to, the Federal Fair Labor Standards Act, the California Labor Code, and any local minimum wage ordinance or prevailing wage requirements.

For purposes of this subsection, a final court order or administrative action is one as to which there is no pending appeal and the time for filing an appeal has passed.

5.32.100. Permit issuance.
(a) The Police Chief shall issue a massage establishment permit if the applicant meets the requirements of this chapter and no grounds for denial exist under Section 5.32.110. The Police Chief may impose conditions on the permit consistent with this chapter and applicable law.
(b) Notice to Property Owner. If the applicant is not the record owner of the property where the massage establishment is located, the Police Chief may send a written notice to the property owner advising of the issuance of the permit and of the regulations applicable to the massage establishment. The Police Chief may also

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provide the property owner with copies of any other notices or communications with the applicant sent at any time before or after issuance of the permit. (c) Term. A massage establishment permit issued pursuant to the terms of this chapter shall be valid for the fiscal year in which it is issued, and, unless suspended or revoked, must be renewed by the massage establishment operator annually so long as the massage establishment is operating within the city.

5.32.110. Permit denial.

The Police Chief may deny an application for a massage establishment permit on any of the following grounds:
(a) The massage establishment, as proposed by the applicant, would not comply with the requirements of this chapter.
(b) The massage establishment, as proposed by the applicant, would not comply with any applicable law, including, but not limited to the city’s building, fire, zoning, and health regulations.
(c) The applicant has knowingly made any false, misleading or fraudulent statement of material fact in the application for a massage establishment permit. Any omission or falsified information within the application, will result in an automatic denial.
(d) Any owner of the massage establishment, within five years immediately preceding the date of filing of the application, has been convicted in a court of competent jurisdiction of any offense that relates directly to the operation of a massage establishment whether as a massage establishment owner or operator or as a person practicing massage for compensation, or as an employee of either; or has at any time been convicted in a court of competent jurisdiction of any felony the commission of which occurred on the premises of a massage establishment. (e) Any owner of the massage establishment is currently required to register under the provisions of Section 290 of the California Penal Code. (f) Any owner of the massage establishment, within five years of the date of application, has been convicted in a court of competent jurisdiction of any violation of Sections 266, 266a, 266e, 266f, 266g, 266h, 266i, 266j, 315, 316, 318, 647(b), or 653.22 of the California Penal Code, or conspiracy or attempt to commit any such offense, or any offense in a jurisdiction outside of the State of California that is the equivalent of any of the aforesaid offenses. (g) Any owner of the massage establishment has been subjected to a permanent injunction against the conducting or maintaining of a nuisance pursuant to

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Sections 11225 through 11235 of the California Penal Code, or any similar provision of law in a jurisdiction outside the State of California. (h) Any owner of the massage establishment, within five years of the date of application, and as established by clear and convincing evidence, has engaged in acts prohibited under California Penal Code Sections 266, 266a, 266e, 266f, 266g, 266h, 266i, 266j, 315, 316, 318, 647(b), or 653.22.
(i) Any owner of the massage establishment is an individual who has not attained the age of eighteen years.
(j) Any owner of the massage establishment, within five years immediately preceding the date of filing of the application, has had a permit or license to practice massage for compensation or to own and/or operate a massage establishment revoked or denied in any jurisdiction.
(k) Any owner of the massage establishment currently owns or operates a massage establishment in the city of Morgan Hill that is not in good standing due to the existence of uncorrected violations or unpaid fines or fees. (l) Within the last five years, the applicant has failed to comply with a final court order or administrative action of an investigatory agency finding a violation of applicable federal, state and local wage and hour laws, including, but not limited to, the Federal Fair Labor Standards Act, the California Labor Code, and any local minimum wage ordinance or prevailing wage requirements. For purposes of this subsection, a final court order or administrative action is one as to which there is no pending appeal and the time for filing an appeal has passed.

5.32.120. Notice of denial—Appeal.
(a) If an application for a massage establishment permit is denied, the Police Chief shall give written notice to the applicant specifying the grounds for denial. (b) The applicant may appeal the decision to deny a massage establishment permit by filing a written notice of appeal with the city manager or designee within fifteen days after deposit of the decision in the mail, specifying in detail the grounds for such appeal.
(c) The city manager or designee shall set a time and place for the hearing on the appeal not less than fifteen days after the date the appeal was received by the city manager, and shall give written notice by mail to the applicant of the date, time, and place for the hearing. The hearing shall be conducted in accordance with Section 5.32.180.

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(d) After the hearing on the appeal, the city manager or designee may refer the matter back to the Police Chief for a new investigation and decision, may affirm the decision of the Police Chief, or may direct the Police Chief to issue the license.

The decision of the city manager or designee upon such appeal shall be final and shall be subject to judicial review according to the provisions and time limits set forth in Code of Civil Procedure Section 1094.6.

5.32.130. Amendments to permit.
(a) Whenever the information provided in the application for a certified massage establishment on file with the city changes, the operator shall file an application, provided by the Police Chief, to amend the permit to reflect such change. An application to amend a massage establishment permit shall be made by submitting an application on a form provided by the Police Chief. The application shall be accompanied by the fee established by the city’s fee schedule. (b) The application shall not be approved unless the Police Chief determines that the terms of the amended permit comply with all requirements of this chapter and all other local, state, and federal laws, and the massage establishment has no outstanding violations or unpaid citations or fees. Inspection of the massage establishment may be required prior to approval of the amendment. (c) An amendment shall not be used to change the location or owners of a massage establishment. Instead, a new permit application is required pursuant to section

5.32.090.
(d) A denial of an application to amend a massage establishment permit may be appealed in the same manner as a denial of an application for a permit under Section 5.32.120.

5.32.140. Requirements for all massage establishment facilities and operations. (a) Operational Requirements. Except as otherwise specifically provided in this chapter, the following operational requirements shall be applicable to all massage establishments located within the city:
(1) No massage establishment shall be kept open for business between the hours of ten p.m. of one day and eight a.m. of the following day. A massage begun any time before ten p.m. must nevertheless terminate at ten p.m.
(2) The hours of operation of the massage establishment shall be displayed in a conspicuous public place in the reception and waiting area and in any front window clearly visible from outside of the massage establishment.

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(3) Patrons and visitors shall be permitted in the massage establishment only during the hours of operation.
(4) During the hours of operation, patrons shall be permitted in massage therapy rooms only if at least one duly authorized certified massage professional is present on the premises of the massage establishment.

Patrons shall not be permitted in any employee break room on the premises.
(5) During the hours of operation, visitors shall not be permitted in massage therapy rooms except as follows:
(A) The parents or guardian of a patron who is a minor child may be present in the massage therapy room with that minor child; (B) The minor child of a patron may be present in the massage therapy room with the patron when necessary for the supervision of the child; or
(C) The conservator, aid, or other caretaker of a patron who is elderly or disabled may be present in the massage therapy room with that elderly or disabled person.
(6) During the hours of operation, except as otherwise provided herein, no visitors shall be permitted in massage therapy rooms, break rooms, dressing rooms, showers, or any other room or part of the massage establishment premises other than the reception and waiting area or toilet rooms.
(7) Except for a patron who is inside a massage therapy room for the purpose of receiving a massage, no patrons or visitors shall be permitted in or on the massage establishment premises at any time who are less than fully clothed in outer garments of nontransparent material, or who display or expose themselves in underclothing or similar intimate apparel. (8) A list of services available and the cost of such services shall be posted in an open and conspicuous public place on the premises. The services shall be described in English and may also be described in such other languages as may be convenient. No massage establishment operator shall permit, and no person employed or retained by the massage establishment shall offer to perform any services or request or demand fees other than those posted.
(9) The massage establishment shall keep on the premises a complete and current roster of all owners, operators, and managing employees of the

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massage establishment and all massage professionals and other persons employed or retained by the massage establishment. The roster shall include the name, residence address, and phone number of each individual. The roster shall be available for inspection by city officials charged with the enforcement of this chapter.
(10) All massage services and all tips, if any, shall be paid for in the reception area. Massage establishments may utilize a system where tip envelopes are provided in the treatment rooms to be utilized and deposited by the client in the reception area.
(11) All owners and operators are expected to comply with the City’s Wage Theft Prevention Policy (CP-17-01) adopted by City Council on July 26, 2017.
(b) Physical Facility and Building and Fire Code Requirements. Except as otherwise specifically provided in this chapter, the following physical facility and building code requirements shall be applicable to all massage establishments located within the city:
(1) Main entry door and reception and waiting area required. One main entry door shall be provided for patron entry to the massage establishment, which shall open to an interior patron reception and waiting area immediately. All patrons and any persons other than individuals employed or retained by the massage establishment shall be required to enter and exit through the main entry door. Unless the massage establishment is a sole proprietorship or a home occupation with one or no other employees, the main entry door shall be unlocked at all times during business hours. (2) No massage establishment located in a building or structure with exterior windows fronting a public street, highway, walkway, or parking area shall block visibility into the interior reception and waiting area through the use of curtains, closed blinds, tints, or any other material that obstructs, blurs, or unreasonably darkens the view into the premises.
(3) All interior doors, including massage therapy rooms or cubicles, but excluding individual dressing rooms, showers, and toilet rooms, shall be incapable of being locked and shall not be blocked to prevent opening.

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(5) A massage table or professional massage chair specifically designed for seated massage shall be used for all massage therapy, with the exception of “Thai,” “Shiatsu,” and similar forms of massage therapy, which may be provided on a padded mat on the floor, provided the patron is fully attired in loose clothing, pajamas, scrubs, or similar style of garment. Massage tables shall have a minimum height of eighteen inches.
(6) Beds, floor mattresses, and waterbeds are not permitted on the premises of the massage establishment, and no massage establishment shall be used for residential or sleeping purposes, which may be shown by circumstantial evidence such as the presence of bedding, pillows, sleeping bags, suitcases, clothing, toiletries or other personal belongings, cooking appliances, utensils, or food in excess of a business establishment’s normal requirements.
(7) All locker facilities that are provided for the use of patrons shall be fully secured for the protection of the patrons’ valuables, and each patron shall be given control of the key or other means of access.
(8) The massage establishment shall comply with all applicable state and local building and fire codes as adopted in Title 15 of this code. (c) Health and Safety Requirements. Except as otherwise specifically provided in this chapter, the following health and safety requirements shall be applicable to all massage establishments located within the city:
(1) The massage establishment shall at all times be equipped with an adequate supply of clean sanitary towels, coverings, and linens, and all massage tables or chairs shall be covered with a clean sheet or other clean covering appropriate to the equipment for each patron. After a towel, covering, or linen has been used once, it shall be deposited in a closed receptacle, or directly into a washing machine, and not used again until properly laundered and sanitized. Towels, coverings, and linens shall be laundered either by regular commercial laundering, or by a noncommercial laundering process that includes immersion in water at least one hundred forty degrees Fahrenheit for not less than fifteen minutes during the washing or rinsing operation. Clean towels, coverings, and linens shall be stored in closed, clean cabinets when not in use. A certified massage professional engaged in the practice of outcall massage shall carry a sufficient quantity of clean and sanitary towels, sheets, and linens to comply with the requirements.
(2) All massage therapy rooms or cubicles, wet and dry heat rooms, toilet rooms, shower compartments, hot tubs, and pools shall be thoroughly cleaned and disinfected as needed, and at least once each business day

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when the premises has been or will be open and such facilities in use. All bathtubs shall be thoroughly cleaned and disinfected after each use. (3) All liquids, creams, or other preparations used on or made available to patrons shall be kept in clean and closed containers. Powders may be kept in clean shakers. All bottles and containers shall be distinctly and correctly labeled to disclose their contents. When only a portion of a liquid, cream, or other preparation is to be used on or made available to a patron, it shall be removed from the container in such a way as not to contaminate the remaining portion.
(4) Unless otherwise licensed under state or local law, Nno invasive procedures shall be performed on any patron. Invasive procedures include, but are not limited to:
(A) Application of electricity that contracts the muscle; (B) Penetration of the skin by metal needles;
(C) Abrasion of the skin below the nonliving, epidermal layers; (D) Removal of skin by means of any razor-edged instrument or other device or tool;
(E) Use of any needle-like instrument for the purpose of extracting skin blemishes; and
(F) Other similar procedures.
(5) All bathrobes, bathing suits, and/or other garments that are provided for the use of patrons shall be either fully disposable and not used by more than one patron, or shall be laundered after each use pursuant to subsection (c)(1) of this section.
(6) All combs, brushes, and/or other personal items of grooming or hygiene that are provided for the use of patrons shall be either fully disposable and not used by more than one patron, or shall be fully disinfected after each use.
(7) No patrons shall be allowed to use any shower facilities of the massage establishment unless such patrons are wearing slip-resistant sandals or flip-flops while in the shower compartment. All footwear such as sandals or flip-flops that are provided for the use of patrons either shall be fully disposable and not used by more than one patron, or shall be fully disinfected after each use.

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(8) Patrons’ genitals and female patrons’ breasts must be fully draped at all times while any individual employed or retained by the massage establishment is in the massage room or cubicle with the patron. No massage shall be provided to a patron that results in intentional contact, or occasional and repetitive contact, with the genitals or anal region of a patron, or of a female patron’s breasts without the written consent of the person receiving the massage and a referral from a licensed California health care provider.
(9) No alcoholic beverages shall be sold, served, or furnished to any patron or visitor; nor shall any alcoholic beverages be consumed, kept, or possessed on the premises of a massage establishment.
(10) No birth control device or aid, including but not limited to condoms, shall be stored, kept, or distributed on the premises of a massage establishment. (d) Attire and Physical Hygiene Requirements. The following attire and physical hygiene requirements shall be applicable to all employees and any other persons who work permanently or temporarily on the premises of a massage establishment within the city, including, but not limited to, all persons who are employed or retained to practice massage for the massage establishment:
(1) No person shall dress in:
(A) Attire that is transparent, see-through, or substantially exposes the person’s undergarments;
(B) Swim attire, unless providing a water-based massage modality approved by the CAMTC;
(C) A manner that exposes the person’s chest, breasts, buttocks, or genitals;
(D) A manner that constitutes a violation of Section 314 of the California Penal Code.
(2) No massage establishment operator, employee, or visitor shall, while on the premises of a massage establishment or while performing any outcall massage service, and while in the presence of any patron, customer, employee or visitor, expose his or her chest, breast, buttocks, or genitals. (3) All persons shall thoroughly wash their hands with soap and water or any equally effective cleansing agent immediately before providing massage to a patron. No massage shall be provided upon a surface of the skin or scalp

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of a patron where such skin is inflamed, broken (e.g., abraded or cut), or where a skin infection or eruption is present.
(e) Display of Permit and Certifications.
(1) The massage establishment permit shall be displayed in an open and conspicuous place on the premises visible from the main entry door and/or reception and waiting area of the massage establishment. (2) Each person employed or retained by a massage establishment to perform massage in or on the premises or through an outcall massage service shall display on his or her person the original, valid current photograph-bearing identification card issued to that employee by the CAMTC. A copy of each such identification card and the person’s original CAMTC certificate shall also be displayed in an open and conspicuous place visible from the main entry door and/or reception and waiting area of the massage establishment. The home address of any employee need not be displayed. (f) Display of Human Trafficking Notices. The massage establishment shall comply with the requirements in California Civil Code Section 52.6 related to the posting of information for victims of human trafficking.
(g) Home Occupation and Outcall-Only Businesses—Exemptions. (1) Where a certified massage establishment is a home occupation, and the operator has complied with the provisions of Section 18.92.060 of this code pertaining to home occupations, the provisions of subsections (a)(2), (b)(1)—(3), and (b)(6) of this section shall not apply, and the portions of the residence subject to the requirements of subsections (b) and (c) of this section shall be only those portions that are used at any time by the patron of the massage establishment.
(2) For massage establishments that provide outcall-only services and have no fixed location for performing massage, provisions of this section related to businesses with fixed locations shall not apply. Specifically, the provisions of subsections (a)(2) – (9), (b)(1) - (4), (b)(6) - (8), (c)(2) and (7), (e)(1), and (f) of this section shall not apply to outcall-only establishments.

5.32.150. Massage establishment inspections.
(a) The inspector shall have the right to enter any massage establishment, other than an establishment providing outcall-only services, during regular business hours, without a search or inspection warrant, to make reasonable inspection to ascertain whether there is compliance with the provisions of this chapter. Inspectors shall have access to all areas of the massage establishment, including but not limited to

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drawers and cupboards used for storage. Identification may be requested of any employee within the establishment who is not displaying a CAMTC identification card. Photographs and digital and video recordings may be taken by the inspector to document the violations. For home occupations, reasonable inspection shall be limited to the portions of the residence open to patrons. (b) The massage establishment operator shall take immediate action to correct each violation noted by the inspector. A reinspection will be performed to ensure that each violation noted by the inspector has been corrected.

5.32.160. Violations—Moratorium.
(a) For the purpose of enforcing the requirements of this chapter, all owners and operators of the massage establishment shall be jointly and severally responsible for the conduct of all massage establishment employees, agents, independent contractors, or other representatives while such persons are on the premises of the massage establishment or providing outcall massage services on behalf of the massage establishment.
(b) In addition to any other remedy available to the city under applicable law, a massage establishment permit may be suspended or revoked as provided in Sections 5.32.170 and 5.32.180. Upon issuance of a final order by the Police Chief or city manager to revoke the massage permit, the massage establishment shall immediately cease operation, and, if so ordered by the hearing officer, no other massage establishment shall be permitted to operate at that location by any person for a period of not less than five years (“the moratorium period”). If the operator is not also the legal owner of the real property on which the massage establishment is situated, notice of such revocation and the five-year prohibition shall be provided by the permit authority to the owner of record of the property as shown on the latest county assessment roll.
(c) In addition to any other remedy available to the city under applicable law, a massage establishment permit may not be renewed or amended unless and until all due and unpaid citations issued pursuant to this chapter are paid in full, and all outstanding violations have been corrected.
(d) Notwithstanding any other provision of this chapter, where a Notice of Revocation or Suspension has been issued to the operator of a massage establishment pursuant to Section 5.32.180 of this chapter, the Police Chief shall not process or grant an application for a massage establishment permit for a new massage establishment at the same premises unless and until such Notice of Revocation or Suspension is dismissed; or a final determination is made pursuant to that section that the current operator’s massage establishment permit is not or should not be revoked; or any moratorium period imposed pursuant to this chapter has expired.

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5.32.170. Revocation or suspension.

All massage establishment operators shall be deemed to know and understand the requirements and prohibitions of this chapter. Any massage establishment permit issued pursuant to this chapter may be suspended or revoked by the Police Chief after a hearing, where the Police Chief finds that any of the following have occurred on even a single occasion:
(a) The permittee or any person employed or retained by the massage establishment has violated any provision of this chapter, California Business and Professions Code Sections 4600 et seq., or any local, state, or federal law. (b) The permittee or any person employed or retained by the massage establishment has been convicted in a court of competent jurisdiction of having violated, or has engaged in conduct constituting a violation of, any of the following:

California Penal Code Sections 266, 266a, 266e, 266f, 266g, 266h, 266i, 266j, 315, 316, 318, 647(b), or 653.22, or conspiracy or attempt to commit any such offense, or any offense in a jurisdiction outside of the State of California that is the equivalent of any of the aforesaid offenses.
(c) The permittee or any person employed or retained by the massage establishment is required to register under Section 290 of the California Penal Code. (d) The permittee has been subject to a permanent injunction against the conducting or maintaining of a nuisance pursuant to this code, or Sections 11225 through 11235 of the California Penal Code, or any similar provision of law in any jurisdiction outside the State of California.
(e) The permittee or any person employed or retained by the massage establishment has engaged in fraud or misrepresentation or has knowingly made a misstatement of material fact while working in or for the massage establishment. (f) The permittee has continued to operate the massage establishment after the massage establishment permit has been suspended.
(g) Massage has been performed on the premises of the massage establishment, with or without the permittee’s actual knowledge, by any person who is not a duly authorized CAMTC-certified massage professional.
(h) A person who is not a duly authorized CAMTC-certified massage professional has provided outcall massage services through or on behalf of the massage establishment.
(i) There have been one or more acts prohibited under California Penal Code Sections 266, 266a, 266e, 266f, 266g, 266h, 266i, 266j, 315, 316, 318, 647(b), or 653.22 taking place on the premises of the massage establishment,

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whether or not any criminal prosecution has been pursued or conviction obtained for such acts, and whether or not they occurred with or without the actual knowledge of the permittee.
(j) The permittee or any person employed or retained by the massage establishment or any other person on the premises of the massage establishment has engaged in conduct or committed acts that a reasonable person in the patron’s position would understand as an offer to perform on or engage in with the patron acts that are sexual in nature or that involve touching of the patron’s genitals, or anal region. (k) The permittee or any person employed or retained by the massage establishment has engaged in sexually suggestive advertising related to massage services on the premises of the massage establishment, including, but not limited to displaying photographs of individuals clothed in swim attire, or attire that is transparent, seethrough or substantially exposes the individual’s undergarments, breasts, buttocks, or genitals, describing massage services as “erotic,” “sensual” or similarly sexual in nature, listing advertisements in adult media, or describing the appearance or age of massage providers.
(l) If the applicant has failed to comply with a final court order or administrative action of an investigatory agency finding a violation of applicable federal, state and local wage and hour laws, including, but not limited to, the Federal Fair Labor Standards Act, the California Labor Code, and any local minimum wage ordinance or prevailing wage requirements. For purposes of this subsection, a final court order or administrative action is one as to which there is no pending appeal and the time for filing an appeal has passed.

5.32.180. Hearing for revocation or suspension.
(a) The Police Chief shall give written notice of a hearing for the revocation or suspension of any permit granted pursuant to this chapter to the permittee. The notice shall set forth the time and place of the hearing, the ground or grounds upon which the hearing is based, the pertinent code sections, and a brief statement of the factual issues in support thereof. The notice shall be mailed, postage prepaid, addressed to the permittee at the last known address of the permittee, or it shall be delivered to the permittee personally, at least ten days prior to the hearing date. The owner/operator has the right to attend the hearing. (b) Within ten days of the hearing the Police Chief shall render his or her decision in writing, stating his or her findings and the action taken, if any. The decision letter shall be mailed, postage prepaid, addressed to the permittee at the last known address of the permittee, or it shall be delivered to the permittee personally. (c) Within ten days from the deposit of the decision letter in the mail or its receipt by the permittee, whichever occurs first, the permittee may appeal the decision in

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writing to the city manager or designee, setting forth with particularity the ground or grounds for the appeal.
(d) The city manager or designee shall give written notice of the hearing on the appeal not less than ten days from the date the appeal was received by the city manager or designee. The hearing shall be conducted in accordance with Section 5.32.190.
(e) After the hearing on the appeal, the city manager or designee may refer the matter back to the Police Chief for a new investigation and decision, may affirm the decision of the Police Chief, may dismiss the disciplinary action, or may revoke or suspend the permit. The decision of the city manager or designee upon such appeal shall be final and shall be subject to judicial review according to the provisions and time limits set forth in Code of Civil Procedure Section 1094.6. (f) The notices provided to the massage establishment pursuant to this section may also be sent to the owner of the premises where the massage establishment is located. However, failure to provide notice to the property owner shall not invalidate any actions taken by the city.

5.32.190. Hearing rules.

The following rules shall apply to any hearing required by this chapter. All parties involved shall have the right to offer testimonial, documentary, and tangible evidence bearing on the issues, to be represented by counsel, and to confront and cross-examine witnesses. Any relevant evidence may be admitted if it is the sort of evidence upon which reasonable persons are accustomed to rely in the conduct of serious affairs. Any hearing under this chapter may be continued for a reasonable time for the convenience of a party or witness.

5.32.200. Violations unlawful and a public nuisance—Penalties, nuisance abatement, and other remedies.

Any massage establishment operated, conducted, or maintained contrary to the provisions of this chapter shall be, and the same is hereby declared to be, unlawful and a public nuisance, and the city attorney may, in addition to or in lieu of prosecuting a criminal action hereunder, commence an action or actions, proceeding or proceedings, for the abatement, removal and enjoinment thereof, in the manner provided by law. Such remedies shall be in addition to any other judicial and administrative penalties and remedies available to the city under this code or under state law.

Section 3. Severability. Should any provision of this ordinance be deemed unconstitutional or unenforceable by a court of competent jurisdiction, such provision shall be severed from the ordinance, and such severance shall not affect the remainder of the ordinance.

Section 4. Effective Date; Posting. This Ordinance shall take effect on the 31st day after adoption. The City Clerk is hereby directed to publish this Ordinance or a summary thereof

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pursuant to Government Code Section 36933.

THE FOREGOING ORDINANCE WAS INTRODUCED AT A MEETING OF THE CITY COUNCIL HELD ON THE 24th DAY OF APRIL 2024, AND WAS FINALLY ADOPTED AT A MEETING OF THE CITY COUNCIL HELD ON THE 15th DAY OF MAY 2024,

AND SAID ORDINANCE WAS DULY PASSED AND ADOPTED IN ACCORDANCE WITH LAW BY THE FOLLOWING VOTE:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

APPROVED: ATTEST:

MARK TURNER, Mayor MICHELLE BIGELOW, City Clerk

CERTIFICATE OF THE CITY CLERK

I, MICHELLE BIGELOW, CITY CLERK OF THE CITY OF MORGAN HILL, CALIFORNIA, do hereby certify that the foregoing is a true and correct copy of Ordinance No. , New Series, adopted by the City Council of the City of Morgan Hill, California at their regular meeting held on the ____ day of ________, 2024.

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City of Morgan Hill
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WITNESS MY HAND AND THE SEAL OF THE CITY OF MORGAN HILL.

DATE:

MICHELLE BIGELOW, City Clerk

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CITY OF MORGAN HILL

ADMINISTRATIVE POLICIES AND PROCEDURES
SUBJECT: PERMITS FOR MASSAGE ESTABLISHMENTS
EFFECTIVE DATE: March 1, 2024
ORIGINATING DEPARTMENT: ECONOMIC DEVELOPMENT

1. Purpose. To establish a permitting process to ensure certain minimum building, sanitation, and operation standards for massage establishment businesses, and by requiring certain minimum qualifications for the operators and practitioners of such businesses, while still facilitating and advancing the ethical practice of massage therapy, by relying upon the uniform statewide regulations enacted by the Legislature in 2008 as Business and Professions Code Sections 4600 et seq., known as the Massage Therapy Act, as subsequently amended, and by restricting the commercial practice of massage in the City to those persons duly certified to practice by the California Massage Therapy Council formed pursuant to those statutes. This policy shall remain in place unless and until the City Council adopts an ordinance addressing massage establishment permitting.

2. Policy. No person may operate a massage establishment within the City without first obtaining a massage establishment permit from the Police Department of the City of Morgan Hill. No individual may practice massage therapy for compensation within the City unless that individual is a California Massage Therapy Council (CAMTC)-certified massage professional. The permit requirements are in addition to the requirements for a business license imposed pursuant to Chapter 5.04 of the City’s Municipal Code, as well as any permits or authorizations that may be required under other applicable laws including but not limited to the City’s building, fire, zoning, and health regulations. Any massage establishment operated, conducted, or maintained contrary to the provisions of this policy shall be, and the same is hereby declared to be, unlawful and a public nuisance.

3. Procedure.

Application. The owners of the massage establishment shall file an application for a permit on a form provided by the City. The application shall be accompanied by the fee established by the City’s fee schedule. Any change in ownership or location requires a new application. The application shall include the information as may be required by the City to determine compliance with any eligibility requirements for issuance of the permit as specified by federal, state, or local law.

Permit issuance. The Police Chief shall issue a massage establishment permit if the applicant meets the requirements of this policy and no grounds for denial exist as described below. The Police Chief may impose conditions on the permit consistent with this policy and applicable law. The permit shall be valid for the fiscal year in which it is issued and, unless suspended or revoked, must be renewed by the massage establishment operator annually so long as the massage establishment is operating within the City.

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Permit denial. The Police Chief may deny an application for a massage establishment permit on any of the following grounds:
(a) The massage establishment, as proposed by the applicant, would not comply with the requirements of this policy.
(b) The massage establishment, as proposed by the applicant, would not comply with any applicable law, including, but not limited to the City’s building, fire, zoning, and health regulations.
(c) The applicant has knowingly made any false, misleading or fraudulent statement of material fact in the application for a massage establishment permit. Any omission or falsified information within the application will result in an automatic denial.
(d) Any owner of the massage establishment, within five years immediately preceding the date of filing of the application, has been convicted in a court of competent jurisdiction of any offense that relates directly to the operation of a massage establishment whether as a massage establishment owner or operator or as a person practicing massage for compensation, or as an employee of either; or has at any time been convicted in a court of competent jurisdiction of any felony the commission of which occurred on the premises of a massage establishment. (e) Any owner of the massage establishment is currently required to register under the provisions of Section 290 of the California Penal Code (“Sex Offender Registration Act”).
(f) Any owner of the massage establishment, within five years of the date of application, has been convicted in a court of competent jurisdiction of any violation of Sections 266, 266a, 266e, 266f, 266g, 266h, 266i, 266j, 315, 316, 318, 647(b), or 653.22 of the California Penal Code, or conspiracy or attempt to commit any such offense, or any offense in a jurisdiction outside of the State of California that is the equivalent of any of the aforesaid offenses. (g) Any owner of the massage establishment has been subjected to a permanent injunction against the conducting or maintaining of a nuisance pursuant to Sections 11225 through 11235 of the California Penal Code, or any similar provision of law in a jurisdiction outside the State of California. (h) Any owner of the massage establishment, within five years of the date of application, and as established by clear and convincing evidence, has engaged in acts prohibited under California Penal Code Sections 266, 266a, 266e, 266f, 266g, 266h, 266i, 266j, 315, 316, 318, 647(b), or 653.22.
(i) Any owner of the massage establishment is an individual who has not attained the age of eighteen years.
(j) Any owner of the massage establishment, within five years immediately preceding the date of filing of the application, has had a permit or license to practice massage for compensation or to own and/or operate a massage establishment revoked or denied in any jurisdiction.

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(k) Any owner of the massage establishment currently owns or operates a massage establishment in the City of Morgan Hill that is not in good standing due to the existence of uncorrected violations or unpaid fines or fees. (l) Within the last five years, the applicant has failed to comply with a final court order or administrative action of an investigatory agency finding a violation of applicable federal, state and local wage and hour laws, including, but not limited to, the Federal Fair Labor Standards Act, the California Labor Code, and any local minimum wage ordinance or prevailing wage requirements. For purposes of this subsection, a final court order or administrative action is one as to which there is no pending appeal and the time for filing an appeal has passed.

Appeal.
(a) If an application for a massage establishment permit is denied, the Police Chief shall give written notice to the applicant specifying the grounds for denial. (b) The applicant may appeal the decision to deny a massage establishment permit pursuant to Chapter 1.20 of the City’s Municipal Code.

Amendments to permit. Whenever the information provided in the application for a certified massage establishment on file with the City changes, the operator shall file an application, provided by the City, to amend the permit to reflect such change. The application shall be accompanied by the fee established by the City’s fee schedule.

Requirements for all massage establishment facilities and operations. (a) Operational Requirements. Except as otherwise specifically provided in this policy, the following operational requirements shall be applicable to all massage establishments located within the City:
(1) No massage establishment shall be kept open for business between the hours of ten p.m. of one day and eight a.m. of the following day. All massage must terminate at ten p.m. regardless of the time it commenced. (2) The hours of operation of the massage establishment shall be displayed in a conspicuous public place in the reception and waiting area and in any front window clearly visible from outside of the massage establishment. (3) Patrons and visitors shall be permitted in the massage establishment only during the hours of operation.
(4) During the hours of operation, patrons shall be permitted in massage therapy rooms only if at least one duly authorized certified massage professional is present on the premises of the massage establishment.

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(B) The minor child of a patron may be present in the massage therapy room with the patron when necessary for the supervision of the child; or
(C) The conservator, aid, or other caretaker of a patron who is elderly or disabled may be present in the massage therapy room with that elderly or disabled person.
(6) During the hours of operation, except as otherwise provided herein, no visitors shall be permitted in massage therapy rooms, break rooms, dressing rooms, showers, or any other room or part of the massage establishment premises other than the reception and waiting area or toilet rooms.
(7) Except for a patron who is inside a massage therapy room for the purpose of receiving a massage, no patrons or visitors shall be permitted in or on the massage establishment premises at any time who are less than fully clothed in outer garments of nontransparent material, or who display or expose themselves in underclothing or similar intimate apparel. (8) A list of services available and the cost of such services shall be posted in an open and conspicuous public place on the premises. The services shall be described in English and may also be described in such other languages as may be convenient. No massage establishment operator shall permit, and no person employed or retained by the massage establishment shall offer to perform any services or request or demand fees other than those posted.
(9) The massage establishment shall keep on the premises a complete and current roster of all owners, operators, and managing employees of the massage establishment and all massage professionals and other persons employed or retained by the massage establishment. The roster shall include the name, residence address, and phone number of each individual. The roster shall be available for inspection by City officials charged with the enforcement of this policy. It shall be the responsibility of each owner or operator to notify the City within seven days of any change in persons providing massage services and to provide copies of the state massage certification for all such persons to the City prior to such persons providing massage services.
(10) All massage services and all tips, if any, shall be paid for in the reception area. Massage establishments may utilize a system where tip envelopes are provided in the treatment rooms to be utilized and deposited by the client in the reception area.
(11) All owners and operators are expected to comply with the City’s Wage Theft Prevention Policy (CP-17-01) adopted by City Council on July 26, 2017 (CP-17-01-Wage-Theft-Prevention (ca.gov)).
(b) Physical Facility and Building and Fire Code Requirements. Except as otherwise specifically provided in this policy, the following physical facility and building code requirements shall be applicable to all massage establishments located

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within the City:
(1) Main entry door and reception and waiting area required. One main entry door shall be provided for patron entry to the massage establishment, which shall open to an interior patron reception and waiting area immediately. All patrons and any persons other than individuals employed or retained by the massage establishment shall be required to enter and exit through the main entry door. Unless the massage establishment is a sole proprietorship or a home occupation with one or no other employees, the main entry door shall be unlocked at all times during business hours. (2) No massage establishment located in a building or structure with exterior windows fronting a public street, highway, walkway, or parking area shall block visibility into the interior reception and waiting area through the use of curtains, closed blinds, tints, or any other material that obstructs, blurs, or unreasonably darkens the view into the premises.
(3) All interior doors, including massage therapy rooms or cubicles, but excluding individual dressing rooms, showers, and toilet rooms, shall be incapable of being locked and shall not be blocked to prevent opening.

Draw drapes, curtain enclosures, or accordion-pleated closures in lieu of doors are acceptable on all inner massage therapy rooms or cubicles. (4) Minimum lighting equivalent to at least one forty-watt light shall be provided in each massage therapy room or cubicle.
(5) A massage table or professional massage chair specifically designed for seated massage shall be used for all massage therapy, with the exception of “Thai,” “Shiatsu,” and similar forms of massage therapy, which may be provided on a padded mat on the floor, provided the patron is fully attired in loose clothing, pajamas, scrubs, or similar style of garment. Massage tables shall have a minimum height of eighteen inches.
(6) Beds, floor mattresses, and waterbeds are not permitted on the premises of the massage establishment, and no massage establishment shall be used for residential or sleeping purposes, which may be shown by circumstantial evidence such as the presence of bedding, pillows, sleeping bags, suitcases, clothing, toiletries or other personal belongings, cooking appliances, utensils, or food in excess of a business establishment’s normal requirements.
(7) All locker facilities that are provided for the use of patrons shall be fully secured for the protection of the patrons’ valuables, and each patron shall be given control of the key or other means of access.
(8) The massage establishment shall comply with all applicable state and local building and fire codes as adopted in Title 15 of this code. (c) Health and Safety Requirements. Except as otherwise specifically provided in this policy, the following health and safety requirements shall be applicable to all massage establishments located within the City:

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(1) The massage establishment shall at all times be equipped with an adequate supply of clean sanitary towels, coverings, and linens, and all massage tables or chairs shall be covered with a clean sheet or other clean covering appropriate to the equipment for each patron. After a towel, covering, or linen has been used once, it shall be deposited in a closed receptacle and not used again until properly laundered and sanitized. Towels, coverings, and linens shall be laundered either by regular commercial laundering, or by a noncommercial laundering process that includes immersion in water at least one hundred forty degrees Fahrenheit for not less than fifteen minutes during the washing or rinsing operation. Clean towels, coverings, and linens shall be stored in closed, clean cabinets when not in use. A certified massage professional engaged in the practice of outcall massage shall carry a sufficient quantity of clean and sanitary towels, sheets, and linens to comply with the requirements.
(2) All massage therapy rooms or cubicles, wet and dry heat rooms, toilet rooms, shower compartments, hot tubs, and pools shall be thoroughly cleaned and disinfected as needed, and at least once each business day when the premises has been or will be open and such facilities in use. All bathtubs shall be thoroughly cleaned and disinfected after each use. (3) All liquids, creams, or other preparations used on or made available to patrons shall be kept in clean and closed containers. Powders may be kept in clean shakers. All bottles and containers shall be distinctly and correctly labeled to disclose their contents. When only a portion of a liquid, cream, or other preparation is to be used on or made available to a patron, it shall be removed from the container in such a way as not to contaminate the remaining portion.
(4) Unless otherwise licensed under state or local law, no invasive procedures shall be performed on any patron. Invasive procedures include, but are not limited to:
(A) Application of electricity that contracts the muscle; (B) Penetration of the skin by metal needles;
(C) Abrasion of the skin below the nonliving, epidermal layers; (D) Removal of skin by means of any razor-edged instrument or other device or tool;
(E) Use of any needle-like instrument for the purpose of extracting skin blemishes; and
(F) Other similar procedures.
(5) All bathrobes, bathing suits, and/or other garments that are provided for the use of patrons shall be either fully disposable and not used by more than one patron, or shall be laundered after each use pursuant to subsection (c)(1) of this section.

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(6) All combs, brushes, and/or other personal items of grooming or hygiene that are provided for the use of patrons shall be either fully disposable and not used by more than one patron, or shall be fully disinfected after each use.
(7) No patrons shall be allowed to use any shower facilities of the massage establishment unless such patrons are wearing slip-resistant sandals or flip-flops while in the shower compartment. All footwear such as sandals or flip-flops that are provided for the use of patrons either shall be fully disposable and not used by more than one patron, or shall be fully disinfected after each use.
(8) Patrons’ genitals and female patrons’ breasts must be fully draped at all times while any individual employed or retained by the massage establishment is in the massage room or cubicle with the patron. No massage shall be provided to a patron that results in intentional contact, or occasional and repetitive contact, with the genitals or anal region of a patron, or of a female patron’s breasts without the written consent of the person receiving the massage and a referral from a licensed California health care provider.
(9) No alcoholic beverages shall be sold, served, or furnished to any patron or visitor; nor shall any alcoholic beverages be consumed, kept, or possessed on the premises of a massage establishment.
(10) No birth control device or aid, including but not limited to condoms, shall be stored, kept, or distributed on the premises of a massage establishment. (d) Attire and Physical Hygiene Requirements. The following attire and physical hygiene requirements shall be applicable to all employees and any other persons who work permanently or temporarily on the premises of a massage establishment within the City, including, but not limited to, all persons who are employed or retained to practice massage for the massage establishment:
(1) No person shall dress in:
(A) Attire that is transparent, see-through, or substantially exposes the person’s undergarments;
(B) Swim attire, unless providing a water-based massage modality approved by the CAMTC;
(C) A manner that exposes the person’s chest, breasts, buttocks, or genitals;
(D) A manner that constitutes a violation of Section 314 of the California Penal Code.
(2) No massage establishment operator, employee, or visitor shall, while on the premises of a massage establishment or while performing any outcall massage service, and while in the presence of any patron, customer, employee or visitor, expose his or her chest, breasts, buttocks, or genitals.

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(3) All persons shall thoroughly wash their hands with soap and water or any equally effective cleansing agent immediately before providing massage to a patron. No massage shall be provided upon a surface of the skin or scalp of a patron where such skin is inflamed, broken (e.g., abraded or cut), or where a skin infection or eruption is present.
(e) Display of Permit and Certifications.
(1) The massage establishment permit shall be displayed in an open and conspicuous place on the premises visible from the main entry door and/or reception and waiting area of the massage establishment. (2) Each person employed or retained by a massage establishment to perform massage in or on the premises or through an outcall massage service shall display on his or her person the valid current photograph-bearing identification card issued to that employee by the CAMTC. A copy of each such identification card and the person’s original CAMTC certificate shall also be displayed in an open and conspicuous place visible from the main entry door and/or reception and waiting area of the massage establishment. The home address of any employee need not be displayed. (f) Display of Human Trafficking Notices. The massage establishment shall comply with the requirements in California Civil Code Section 52.6 related to the posting of information for victims of human trafficking.
(g) Home Occupation and Outcall-Only Businesses—Exemptions. (1) Where a certified massage establishment is a home occupation, and the operator has complied with the provisions of Section 18.92.060 of this code pertaining to home occupations, the provisions of subsections (a)(2), (b)(1)—(3), and (b)(6) of this section shall not apply, and the portions of the residence subject to the requirements of subsections (b) and (c) of this section shall be only those portions that are used at any time by the patron of the massage establishment.
(2) For massage establishments that provide outcall-only services and have no fixed location for performing massage, provisions of this section related to businesses with fixed locations shall not apply. Specifically, the provisions of subsections (a)(2) – (9), (b)(1) - (4), (b)(6) - (8), (c)(2) and (7), (e)(1), and (f) of this section shall not apply to outcall-only establishments.

Massage establishment inspections.
(a) The inspector shall have the right to enter any massage establishment, other than an establishment providing outcall-only services, during regular business hours, without a search or inspection warrant, to make reasonable inspection to ascertain whether there is compliance with the provisions of this policy. Inspectors shall have access to all areas of the massage establishment, including but not limited to drawers and cupboards used for storage. For home occupations, reasonable inspection shall be limited to the portions of the residence open to patrons. (b) The massage establishment operator shall take immediate action to correct each

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violation noted by the inspector. A reinspection will be performed to ensure that each violation noted by the inspector has been corrected.

Revocation or suspension. All massage establishment operators shall be deemed to know and understand the requirements and prohibitions of this policy. Any massage establishment permit issued pursuant to this policy may be suspended or revoked by the Police Chief, where the Police Chief finds that any violation of this policy has occurred on even a single occasion. Appeal of the decision may be made pursuant to Chapter 1.20 of the City’s Municipal Code.

APPROVED:
__________________________________ _______________________ CHRISTINA J. TURNER, CITY MANAGER DATE

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17 CITY COUNCIL STAFF REPORT
MEETING DATE: April 24, 2024
PREPARED BY:

James Sylvain, Deputy Director Utility Services
APPROVED BY: City Manager

SEWERS AND INDUSTRIAL WASTE ORDINANCE UPDATES

RECOMMENDATION(S)

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

2. Introduce Ordinance updating the City's sewer use provisions.

COUNCIL PRIORITIES, GOALS & STRATEGIES
City Council Ongoing Priorities
Enhancing Public Safety
Protecting the Environment
Maintaining and Enhancing Infrastructure
Advancing Regional Initiatives
REPORT NARRATIVE:

The purpose of this agenda item is to introduce updates to the City's Sewers and Industrial Waste Ordinance to include the following two items: 1) add new and modify existing definitions; and 2) update local limits of the specific pollutant table. Attachment 1 is the updated ordinance. Attachment 2 is the "red line" version of Attachment 1 with updated changes visible.

To protect our environment, public investment, and staff health, Morgan Hill’s pretreatment program, which is a federally mandated program, needs to be updated following a periodic routine audit and communications between the State Water Resources Control Board and the program Administrator(s).

Since the city’s sewerage is treated at the South County Regional Wastewater Authority (SCRWA), Morgan Hill falls under the umbrella of SCRWA for its pretreatment program, which is managed and administered by the SCRWA plant and pretreatment program staff. To ensure uniformity with the updated requirements that SCRWA is implementing to comply with the new regulations, Chapter 13.20 of the City’s Ordinances needs to be revised as well. SCRWA introduced the State of California mandated updates to the SCRWA Board on January 3, 2024. The SCRWA Board voted unanimously to approve moving forward in the process.

After the introduction, the SCRWA Board adopted the updates at the April 3, 2024

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17 meeting. The changes will take effect 30 days later. The City of Morgan Hill and the City of Gilroy co-own that wastewater treatment facility.

COMMUNITY ENGAGEMENT:

Inform
The City advertised the Sewers and Industrial Waste Ordinance Update in the Weekly 4-1-1, the city's webpage, social media, etc. A community meeting was not necessary since this update is more for uniformity and compliance with SCRWA Sewer Use Ordinance Updates.

ALTERNATIVE ACTIONS:

The Council could decline to adopt the Ordinance Updates; however, that would create confusion for the collection system users since the rules and pollutant limits will be different than the SCRWA Sewer Use Ordinance which oversees and ensures compliance of the pretreatment program.

PRIOR CITY COUNCIL AND COMMISSION ACTIONS:

The City's sewers and industrial waste ordinance was amended by the Council in July 2014, and again in June 2021.

FISCAL AND RESOURCE IMPACT:

There are no direct fiscal impacts associated with adopting the updated ordinance as it does not change the fiscal impacts (namely reduced sewer sales revenues and increased pretreatment program costs) associated with pollutants and other contaminants that already exist under the current ordinance. Administering the City's sewer waste and pollutants response programs are activities included in the work program of the Public Services Department.

CEQA (California Environmental Quality Act):

Categorical Exemption
This Ordinance and actions taken hereafter pursuant to this Ordinance are exempt from the California Environmental Quality Act as actions intended to preserve and protect natural resources (CEQA Guidelines section 15307).

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ORDINANCE NO. XXXX, NEW SERIES

AN ORDINANCE OF THE CITY OF MORGAN HILL
AMENDING SECTION 13.20.030 (DEFINITIONS) AND
SECTION 13.20.090 (SPECIFIC POLLUTANT LIMITATIONS)
OF CHAPTER 13.20 (SEWERS AND INDUSTRIAL WASTE)
OF TITLE 13 (PUBLIC SERVICES), TO REGULATE SEWER

USE AND SET UNIFORM REQUIREMENTS FOR

DISCHARGES INTO THE WASTEWATER COLLECTION
AND TREATMENT SYSTEM.

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

Section 1. Section 13.20.030 (Definitions) of Chapter 13.20 (Sewers and Industrial Waste) of Title 13 (Public Services) is hereby amended to read as follows:

13.20.030 - Definitions.

The following words, terms and phrases, when used in this chapter, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning:

1. "Act" or "the Act" means the Federal Water Pollution Control Act, also known as the Clean Water Act, as amended, 33 U.S.C. 1251, et seq.

2. "Categorical Pretreatment Standards or Categorical Standards" means National Pretreatment Standards or Pretreatment Standard.

3. "City certified contractor" means a contractor that is certified by an accredited agency along with the City of Morgan Hill to perform inspection and repair on private sewer lateral and sanitary sewer collection system.

4. "Common interest development" means a development managed or governed by a homeowners' association. Examples of common interest developments may include condominium projects (in which the individual units are owned), planned unit developments, community apartment projects (in which the individual units are leased to tenants), and stock cooperatives.

5. "Domestic waste" means a combination of liquid or water containing human waste, conducted away from residences, business buildings, and institutions.

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6. "Environmental Protection Agency (USEPA)" means the U.S. Environmental Protection Agency; or where appropriate, the term may also be used as a designation for the administrator or other duly authorized official of said agency.

7. "Garbage," "refuse" and all other terms used in this chapter shall have the same meaning given to them in Section Code 13.28.010.LLL

8. "Homeowners' association" means a non-profit corporation or unincorporated association created for the purpose of managing or governing a common interest development and that operates in accordance with governing documents, whether or not the corporation or association is formally designated or commonly referred to as a homeowners' association.

9. Indirect Discharge or Discharge: The discharge or the introduction of non- domestic pollutants from any source regulated under section 307(b) and (c) or (d) by the Act, into the Plant (including holding tank waste discharged into the system).

10. Industrial User (or User): Any contributor of industrial waste or wastewater or a source of indirect discharge.

11. "Industrial waste" means a combination of liquid or water-carried waste resulting from the manufacturing process employed in commercial or industrial establishments, including washing, cleaning, or drain water from such processes.

12. "Inspector" means the authorized inspector or representative of the city engineer.

13. "Interceptor" means a device or trap to prevent the amount of grease, sand, oil or other solids or semi-solids from entering the sewer system.

14. “Interference ” means a Discharge which, alone or in conjunction with a discharge or discharges from other sources, both:
(1) Inhibits or disrupts the POTW, its treatment processes or operations, or its sludge processes, use or disposal; and
(2) Therefore is a cause of a violation of any requirement of the POTW's NPDES permit (including an increase in the magnitude or duration of a violation) or of the prevention of sewage sludge use or disposal in compliance with the following statutory provisions and regulations or permits issued thereunder (or more stringent State or local regulations): Section 405 of the Clean Water Act, the Solid Waste Disposal Act (SWDA) (including title II, more commonly referred to as the Resource Conservation and Recovery Act (RCRA), and including State regulations contained in any State sludge management plan prepared pursuant to subtitle D of the SWDA), the Clean Air Act, the Toxic Substances Control Act, and the Marine Protection, Research and Sanctuaries Act

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15. “National Pretreatment Standard, Pretreatment Standard, or Standard” means any regulation containing pollutant discharge limits promulgated by the EPA in accordance with section 307 (b) and (c) of the Act, which applies to Industrial Users. This term includes prohibitive discharge limits established pursuant to § 403.5.

16. "National Prohibitive Discharge Standard" or "prohibitive discharge standard" means any regulation developed under the authority of Section 307(b) of the Act and 40 Codified Federal Regulations (CFR), Section 403.5.

17. "New source" means any source, the construction of which is commenced after the publication of proposed regulations prescribing a Section 307 (c) (33 U.S.C. 1317) Categorical Pretreatment Standard.

18. "Permittee" means the person to whom a wastewater permit has been issued pursuant to this chapter.

19. "Person" means an individual, firm, partnership, corporation, or government agency, and their heirs, assigns or agents.

20. "Pretreatment" or "standard" means the reduction of the amount of pollutants, the elimination of pollutants, or the alteration of the nature of pollutants’ properties in wastewater to a less harmful state prior to or in lieu of discharging or otherwise introducing such pollutants into a publicly owned treatment works (POTW). The reduction or alteration can be obtained by physical, chemical, or biological processes, process changes, or other means, except by diluting the concentration of the pollutants unless allowed by an applicable pretreatment standard.

21. "Pretreatment requirements" means any substantive or procedural requirement related to pretreatment, other than a pretreatment standard imposed on a user.

22. "Private sanitary sewer collection system" shall mean any sanitary sewer pipe originating or located at least partially on a common interest development collecting wastewater from more than one building sanitary sewer, including, but not limited to:
apartment buildings, business complexes, mobile home parks, condominiums, or townhomes. This excludes single-family residential property with an accessory dwelling unit.

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23. "Private sewer lateral" means the sewer pipeline from the plumbing of a building to a public sewer collection line, including portions that extend across public rights-of-way and the Saddle, wye or other physical connection to the collection line. Private sewer laterals are privately owned and maintained.

24. "Public sewer" means a main or collector sanitary sewer dedicated to public use.

25. "Qualified contractor" means, for the purposes of private sewer lateral inspection or repair and private sanitary sewer collection system inspection or repair, a licensed plumbing contractor with a City of Morgan Hill business license and an active pipeline or lateral assessment certification from the National Association of Sewer Service Companies.

26. "Sale of property" means a change in ownership by purchase or otherwise involving a transfer of legal title to real property, except for any transfer excluded from property tax reassessment by Revenue and Taxation Code Section 60 et seq. and/or as determined by the Santa Clara County assessor.

27. "Significant industrial user" means any industrial user of the city's wastewater disposal system who (a) has a discharge flow of ten thousand gallons or more per average workday; or (b) has a flow greater than five percent of the flow in the city's wastewater treatment system; or (c) has wastes which are toxic pollutants as defined pursuant to Section 307 of the Act or State of California Statutes and rules; or (d) is found by the city, state control agency or the U.S. Environmental Protection Agency (EPA) to have significant impact, either singly or in combination with other contributing industries, on the wastewater treatment system, the quality of sludge, the system's effluent quality, or air emissions generated by the system; or (e) is subject to categorical pretreatment standards
Section 2. Section 13.20.090 (Specific Pollutant Limitations) of Chapter 13.20 (Sewers and Industrial Waste) of Title 13 (Public Services) is hereby amended to read as follows:

13.20.090 - Specific pollutant limitations.

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It unlawful for any user to discharge wastewater containing in excess of:
610 mg/L BOD
1000 mg/L TSS
100 mg/L Grease and oil as petroleum hydrocarbons
40 degrees C. Temperature

6.5 to 11.0 pH
units
pH

0.88 mg/L Arsenic

0.01 mg/L Cadmium

5.1 mg/L Total chromium

1.8 mg/L Copper

1.8 mg/L Cyanide

0.5 mg/L Lead

0.03 mg/L Mercury

2.7 mg/L Nickel

4.2 mg/L Silver

1.4 mg/L Zinc
2,900 mg/L Chloride
2,500 mg/L Sodium
9,500 mg/L Total dissolved solids
Trace mg/L Total identifiable chlorinated hydrocarbons

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Trace mg/L Toxic organic compounds (priority pollutants as defined by the EPA) Concentrations apply at the point where the industrial waste is discharged to the POTW. All concentrations for metallic substances are for "total" metals unless indicated otherwise.

The administrator may impose mass limitations in addition to or in place of the concentrationbased limitations above.

Section 3. Severability
If any section, subsection, sentence, clause or phrase in this Ordinance is for any reason held invalid, the validity of the remainder of the Ordinance will not be affected. The city council hereby declares it would have passed this Ordinance and each section, subsection, sentence, clause or phrase thereof, irrespective of the fact that one or more sections, subsections, sentences, clauses, or phrases or is declared invalid.

Section 4. Effective Date; Posting.

This Ordinance shall take effect 30 days after adoption by Council. The City Clerk is hereby directed to publish this Ordinance or a summary thereof pursuant to Government Code Section 36933.

THE FOREGOING ORDINANCE WAS INTRODUCED AT A MEETING OF THE CITY COUNCIL HELD ON THE 24th DAY OF APRIL 2024, AND WAS FINALLY ADOPTED AT A MEETING OF THE CITY COUNCIL HELD ON THE 15th DAY OF MAY 2024, AND SAID ORDINANCE WAS DULY PASSED AND ADOPTED IN ACCORDANCE WITH LAW BY THE FOLLOWING VOTE:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

APPROVED: ATTEST:

MARK TURNER, Mayor MICHELLE BIGELOW, City Clerk

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City of Morgan Hill
Ordinance No. xxxx, New Series

Page 7 of 7 ends

CERTIFICATE OF THE CITY CLERK

I, MICHELLE BIGELOW, CITY CLERK OF THE CITY OF MORGAN HILL, CALIFORNIA, do hereby certify that the foregoing is a true and correct copy of Ordinance No. xxxx, New Series, adopted by the City Council of the City of Morgan Hill, California at their regular meeting held on the 15th day of May 2024.

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

DATE:

MICHELLE BIGELOW, City Clerk

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Morgan Hill City CouncilApril 24, 2024

Morgan Hill City Council
April 24, 2024