Morgan Hill City Council
January 15, 2025

6 If the City Council does not take action on the proposed General Plan amendment, the General Plan will remain as-is, and commercial development will continue to require a FAR of 0.5; whereas residential development will not have to meet the FAR requirement along the Monterey Road corridor.

If the City Council does not take action on the proposed ordinance amendments, the Municipal Code will remain as-is, and the City will not be consistent with Senate Bill 477, Senate Bill 1211, Assembly Bill 2085, and Assembly Bill 2097. In addition, the clerical errors and inconsistencies within the Code will remain. The Council may also make modifications to the proposed amendments, or not approve certain sections that the Council deems appropriate.

PRIOR CITY COUNCIL AND COMMISSION ACTIONS:

On June 15, 2016, the City Council adopted Ordinance No. 2205 N.S., amending Chapter 12.32 (Restrictions on Removal of Significant Trees) of Title 12 – Streets, Sidewalks and Public Places in its entirety.

On July 27, 2016, the City Council adopted Resolution No. 16-128, adopting a comprehensive update of the Morgan Hill General Plan entitled "Morgan Hill 2035 General Plan".

On June 6, 2018, the City Council adopted Ordinance No. 2277 N.S., a comprehensive update of Title 18 – Zoning of the City of Morgan Hill Municipal Code. The update included an amendment to the City’s official zoning map consistent with the Morgan Hill 2035 General Plan.

On December 18, 2019, the City Council adopted Ordinance No. 2313 N.S. to update Chapter 18.84 (Accessory Dwelling Units) of Title 18 (Zoning) to implement changes to accessory dwelling units (ADUs) pursuant to Assembly Bill 68, Assembly Bill 881, and Senate Bill 13.

On September 6, 2023, the City Council unanimously adopted Ordinance No. 2348, establishing Chapter 18.29 (Monterey Corridor Form-Based Code) of Title 18 (Zoning).

On August 27, 2024, the Planning Commission considered and recommended, unanimously, the City Council approve the proposed Mixed Use Flex General Plan text Amendment.

On December 10, 2024, the Planning Commission considered and recommended, unanimously, the City Council approve the proposed draft Ordinance (Attachment 2).

FISCAL AND RESOURCE IMPACT:

The cost of City-initiated General Plan Amendments is borne, and work is accommodated, within the respective division's annual workplan and budget. Staff regularly brings forward municipal code amendments as necessary to enhance, correct, and/or refine the Code; and therefore, the cost is borne, and work is accommodated,

6 within the respective division's annual workplan and budget.

CEQA (California Environmental Quality Act):

The proposed amendments are categorically exempt from environmental review pursuant to Section 15061(b)(3) of the California Environmental Quality Act (CEQA) Guidelines. The proposed project is covered by the common-sense exemption that CEQA applies only to projects that have the potential to cause a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. The proposed project will not result in any direct impact upon the physical environment. Any development that occurs in the future subject to such standards will undergo an independent analysis per the requirements of CEQA.

The Environmental Impact Report (EIR) for the Morgan Hill 2035 General Plan, which envisioned the transformation of the Monterey Corridor north and south of Downtown into a vibrant mixed-use corridor, was prepared in accordance with CEQA and certified by the Morgan Hill City Council on July 27, 2016 (SCH#2015022074).

RESOLUTION NO. 25-XX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF MORGAN HILL ADOPTING A GENERAL PLAN
AMENDMENT (GPA2024-0001) TO AMEND THE TEXT OF
THE MORGAN HILL 2035 GENERAL PLAN TO

ELIMINATE THE FLOOR AREA RATIO FOR THE MIXED

USE FLEX LAND USE DESIGNATION
WHEREAS, the City of Morgan Hill (the “City”) has an adopted General Plan, which includes all of the state mandated elements;
WHEREAS, the City proposes to amend the General Plan text to eliminate the Floor Area Ratio for the Mixed Use Flex land use designation to better align the intensity of allowed land uses within the Mixed Use Flex designation with recent changes in State law, the Monterey Corridor Form-Based Code, and the overall goals of the General Plan; WHEREAS, this General Plan Amendment was found to be exempt from environmental review pursuant to Section15061(b)(3) of the California Environmental Quality Act (CEQA) Guidelines;
WHEREAS, on January 3, 2025, a public notice was published in the Morgan Hill Times, specifying the date, time, and location of the public hearing to consider the recommendation that the City Council adopt the General Plan Amendment to eliminate the Floor Area Ratio for the Mixed Use Flex land use designation;
WHEREAS, such requests were considered by the Planning Commission at its regular meeting of August 27, 2024 and by the City Council at its meeting of January 15, 2025; and WHEREAS, testimony received at a duly-noticed public hearing, along with exhibits and drawings and other materials have been considered in the review process.

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

SECTION 1. The Morgan Hill City Council finds that the General Plan amendment meets the letter and intent of the General Plan goals and policies.

SECTION 2. That the City Council adopt the Resolution eliminating the Floor Area Ratio for the Mixed Use Flex land use designation as described in the attached Exhibit “A” and by this reference incorporated herein.

SECTION 3. The City Clerk shall certify to the adoption of this Resolution.

SECTION 4. This Resolution shall take effect immediately upon its adoption by the City Council.

City of Morgan Hill
Resolution No. 25-xx

PASSED AND ADOPTED THIS 15th DAY OF JANUARY 2025, AT A MEETING OF THE CITY COUNCIL 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. 25-xxx adopted by the City Council at the meeting held on January 15, 2025.

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

DATE:

MICHELLE BIGELOW, City Clerk

City of Morgan Hill
Resolution No. 25-xx

EXHIBIT ‘A”
Amend page CNF-13 description of Mixed Use Flex Designation as follows:

Mixed Use Flex. The Mixed Use Flex designation, which is primarily applied to properties along the Monterey Road corridor north and south of downtown, allows for a mix of residential, commercial, and office uses applied either vertically (i.e., one structure with multiple uses) or horizontally (i.e., structures with different land uses located adjacent to one another). Density should transition from higher to lower at the ends of Monterey corridor. The Mixed Use Flex designation allows 7 to 24 units per acre.

ORDINANCE NO. , NEW SERIES

AN ORDINANCE OF THE CITY OF MORGAN HILL
AMENDING CHAPTER 12.32 (RESTRICTIONS ON
REMOVAL OF SIGNIFICANT TREES) WITHIN TITLE 12
(STREET, SIDEWALKS AND PUBLIC PLACES) OF THE

MUNICIPAL CODE OF THE CITY OF MORGAN HILL
AND VARIOUS CODE PROVISIONS WITHIN TITLE 18
(ZONING) OF THE MUNICIPAL CODE OF THE CITY OF

MORGAN HILL IMPLEMENTING UPDATES TO

ACCESSORY DWELLING UNIT PROVISIONS TO
COMPLY WITH SENATE BILL 477 AND SENATE BILL
1211; IMPLEMENTING REPRODUCTIVE HEALTH

COMMUNITY CLINICS BY-RIGHT TO COMPLY WITH
ASSEMBLY BILL 2085; UPDATES TO PARKING
PROVISIONS TO COMPLY WITH ASSEMBLY BILL 2097;

AND IMPLEMENTING MINOR AMENDMENTS DUE TO

CLERICAL ERRORS AND INCONSISTENCIES

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

Section 1. Chapter 12.32 (Restrictions on Removal of Significant Trees) of Title 12 (Streets, Sidewalks and Public Places) is hereby amended to read as follows:

Chapter 12.32 PROTECTED AND SIGNIFICANT TREES

12.32.010 Council determinations.

The city council finds and declares:

A. The intent of promoting the preservation and establishment of a diverse, abundant tree canopy in the city is vital to the health and character of the community. The existing and future trees and tree communities located in the city are a valuable and distinctive natural resource. The trees and tree communities of the city enhance the economic base through agricultural production, encouragement of tourism and enrichment of the living environment.

B. The following environmental consequences are among those which could result from the indiscriminate removal or destruction of trees and tree communities in the city:

1. Modification of microclimates;

2. Change or elimination of animal habitat, possibly including habitats of endangered

City of Morgan Hill
Ordinance No. XXXX, New Series

species;

3. Change in soil conditions, resulting in modified biological activity and erosion of soils;

4. Creation of increased susceptibility of flood hazards;

5. Increased risk of landslides;

6. Increased cost of construction and maintenance of drainage systems through increased flow and diversion of surface waters;

7. Degradation of the human habitat;

8. Loss of environmental benefits of trees in neighborhoods, such as noise reduction, oxygen replacement, carbon dioxide reduction, interception of particulates and aesthetic qualities; and/or

9. Potential for irreparable wind damage to adjacent trees.

C. The preservation and replacement of significant tree communities on private and public property is necessary to protect the ecology of the area and prevent undesirable changes to the natural and built environment.

D. It is necessary to enact the ordinance codified in this chapter for the reasons stated in this section and to promote the public health, safety, general welfare and prosperity of the city, while respecting and recognizing individual rights to develop, maintain and enjoy private property to the fullest possible extent, consistent with the public interest, convenience and necessity.

12.32.020 Definitions.

For the purposes of this chapter, the following words shall have the meaning ascribed to them in this section:

A. “Arborist” means any person certified in the professional care, examination, and maintenance of trees.

B. "City" means the city of Morgan Hill, California, acting by and through its authorized representatives.

C. "Community of trees" means a group of trees of any size which are ecologically or aesthetically related to each other, with a combined canopy cover of more than ten percent, and that loss of such community would cause a significant ecological, aesthetic, or environmental impact in the immediate area.

D. "Development services director" means the development services director of the city, including their authorized or appointed representatives.

City of Morgan Hill
Ordinance No. XXXX, New Series

E. “Diameter at breast height (DBH)” means the standard measurement for a tree trunk diameter, measured 4.5 feet above the average ground level.

F. “Native tree” means any tree which is native to the Morgan Hill region. Such trees include, but are not limited to, oaks (all types), California Bays, Madrones, Sycamore, and Alder.

G. “Nonnative tree” means any tree that is not native to the Morgan Hill region.

H. "Person" means an individual, public agency, including the city and its departments, firms, associations, and corporations, and their employees, agents, or representatives.

I. "Private property" means all property not owned by the city or any other public agency.

J. “Prohibited tree” means any trees that become liabilities due to structural weaknesses, disease or insect susceptibility, short life, destructive root systems, or requiring excessive watering or maintenance as defined in Chapter 12.28.050.

K. “Protected tree” means any native tree, significant tree, any tree designated for protecting during review and approval of a development project, public or street trees, and otherwise designated as significant status.

L. “Prune” means the selective removal or modification of twenty-five percent or more of the tree branches, roots, buds, or limbs in such a manner that impacts the structure of the tree.

M. “Public tree” means any tree located in any street, park, or public place or planted or maintained by the city.

N. "Public property" means all property owned by the city, and any other city, county, city and county, special district, or other public agency in the incorporated area of the city.

O. "Significant Tree" means any live woody plant rising above the ground with a single stem or trunk a diameter at breast height (DBH) of thirteen inches or more for nonnative tree species and a diameter at breast height (DBH) of six inches or more for native tree species.

All commercial tree farms and orchards (including individual fruit trees) are exempted from the definition of tree for the purpose of this chapter.

P. "Street Tree" is a tree, of any size, situated within the public street right-of-way or publicly accessible private street (e.g., trees within a landscape park strip), or within five feet of a publicly accessible sidewalk adjacent to a public or private street in the case of a street without a landscape park strip.

Q. “Trimming” means the removal of less than twenty-five percent of the canopy, including overgrown or obstructing branches from a tree to maintain the shape and health of the tree, and to protect nearby structures or utilities.

12.32.030 Permit—Required.

It is unlawful for any person to cut down, prune, remove, poison, or otherwise kill or destroy, or

City of Morgan Hill
Ordinance No. XXXX, New Series

cause to be removed, any protected tree, significant tree, street tree, public tree, or a community of trees on any public or private property without first securing a permit as provided in this chapter; provided, however, that a permit shall not be required for commercial tree farms.

12.32.040 Permit—Application.

Any person desiring to cut down, prune, remove, destroy, or cause to be removed any tree regulated in this chapter shall apply to the development services department for a tree removal permit application provided by the department. The application shall be accompanied by such drawings including a site plan, written material such as a statement of request, photographs, arborist report, and other necessary information concerning trees within the affected area and which shall include:

A. The diameter and height of the tree;
B. The species of each tree;
C. A site plan or accurate sketch of location and trees proposed to be cut down, pruned, removed, or destroyed (showing other significant trees, shrubs, buildings or proposed buildings; photographs may be used to show the area);
D. Method for marking the tree proposed to be cut down, pruned, removed, or destroyed; E. Description of methods to be used in cutting down, pruning, removing, or destroying the tree;
F. Description of tree planting or replacement program; G. Reasons for proposing to cut down, prune, remove, or destroy the tree; H. Address where tree is located;
I. Percentage of tree canopy to be removed or pruned;
J. Arborist report indicating general health of tree to be cut down, pruned, removed, or destroyed; and
K. Other information or materials which the development services director may require.

L. Payment of fees shall be due upon submittal of a tree removal application as designated on the current fee schedule. The date of submittal shall be designated by receipt of payment.

12.32.050 Permit—Public notice procedures.

Within five days after submission of a completed application, the applicant shall post a public notice of the tree removal or pruning application request, provided by the development services department, in at least two conspicuous locations clearly visible to the public on or close to the property affected, indicating the date of the application, a brief description thereof, identification

City of Morgan Hill
Ordinance No. XXXX, New Series

of the subject property, the address to which comments may be directed and from which further information may be obtained, and the final date for receipt of comments. No action shall be taken upon any application until the applicant has filed an affidavit that such posting has been completed and posted for ten days.

12.32.060 Permit—Review and action.

The development services director or their designee shall review the application and, if necessary, inspect the site, and shall determine on the basis of the information provided, the site inspection, and the criteria contained in this chapter whether to grant, grant with conditions, or deny the permit. Such action shall be taken within thirty days after receipt of the affidavit referred to in the preceding section and after the expiration of the ten-day public noticing period.

Upon taking action, the development services director or their designee shall provide the applicant with a written statement indicating the action taken, any conditions of approval imposed, and the findings made in support thereof.

12.32.070 Permit—Approval—Criteria.

The development services director or any other person or body charged with determining whether to grant, conditionally grant, or deny a tree removal permit may approve a permit only if one or more of the following findings are made:

A. Removal of the tree is warranted because the tree meets one of the following conditions:

1. Is diseased as demonstrated in a report provided by a qualified arborist or tree surgeon documenting the extent and nature of the disease and how the diseased conditions warrants the trees removal,

2. Could adversely affect the general public health and safety,

3. Could cause substantial damage,

4. Is a public nuisance (e.g., obstructing the public right-of-way),

5. Is in danger of falling,

6. Is too closely located to existing structures,

7. All practical design alternatives for site layout have been exhausted without being able to design around the tree(s), etc.

8. Interferes with utility service,

9. Acts as a host for a plant which is parasitic to another species of tree which is in danger of being infested or exterminated by the parasite,

10. Is a substantial fire hazard,

City of Morgan Hill
Ordinance No. XXXX, New Series

11. Is necessary for the continuing agricultural use of the property, or

12. Is a street tree that is not identified on a list of suitable street trees maintained by the development services director.

B. The required action is necessary:

1. To utilize the property in a manner which is of greater public value than any environmental degradation caused by the action, or

2. To allow reasonable economic or other enjoyment of the property.

C. The tree will be replaced by plantings approved by the development services director, unless special conditions indicate otherwise.

12.32.080 Permit—Approval—Conditions.

In granting any permit as provided in this chapter, the development services director, planning commission, or city council may attach reasonable conditions to ensure compliance with the intent and purpose of this chapter including, but not limited to:

A. All protected or significant trees proposed for removal shall be replaced at a 1:1 ratio with a similar native tree species of at least minimum 15-gallon in size. In the case of nonnative trees to be removed, the replacement tree shall be a native species and at least minimum 15-gallon in size. The development services director may require additional replacement trees as necessary to mitigate the impact from the loss of tree canopy.

B. Use of measures to affect erosion control, soil and water retention and diversion or control of increased flow of surface waters;
C. Use of measures to ensure that the contemplated action will not have adverse environmental effects relating to shade, noise buffers, protection from wind, air pollution and historic features; and/or
D. Posting of a bond to ensure maintenance of substitute landscaping pursuant to the requirements of Chapter 18.64 (Landscaping) of this code.

12.32.090 Application constitutes permission to enter property.

Filing of an application for a tree removal permit shall constitute a grant of permission for city personnel concerned with administering this part to enter the subject permit area during normal working hours from the date of application to the completion of any approved action for the purpose of inspecting the area for compliance with the provisions of this chapter and applicable law.

12.32.100 Inspection—Notification of violations.

The development services department may cause sufficient inspections to be made of the permit

City of Morgan Hill
Ordinance No. XXXX, New Series

area to assure compliance with the provisions of this chapter and the requirements of any applicable law. Upon completion of any inspection, the permittee shall be given a written notice of any violations observed at the time of inspection for correction thereof.

12.32.110 Commencement of work—Time limitations.

If work authorized by an approved permit is not commenced within a period of one (1) year from the date of approval, the permit shall be considered void.

12.32.120 Emergencies.

In case of emergency caused by the hazardous or dangerous condition of a tree and requiring immediate action for the safety of life or property, such necessary action may be taken to remove the tree or otherwise reduce or eliminate the hazard without complying with the other provisions of this chapter, except that the person responsible for the cutting or removal of the tree shall report such action to the development services director within five working days thereafter and provide retroactive payment of the tree removal permit fee.

12.32.130Appeal procedures.

The applicant or any other person who is aggrieved by the issuance or denial of the permit or any conditions thereof may appeal in the manner set forth in Chapter 18.112 (Appeals).

12.32.140 Removal or pruning without a permit unlawful.

It is unlawful for any property owner, lessee, their agent, or representative to engage in removal or pruning or any other action that would result in tree removal or pruning without a valid tree removal permit. In addition to any other remedies that may exist by law, such party shall be liable to the city for an administrative penalty to be determined by the development services director as follows:

1. A fine equal to three times the valuation of the removed tree, as determined by a certified arborist; or

2. The amount of the cost of replacing a removed public tree with a new tree as comparable to the removed tree as is reasonably feasible; or

3. A fine equal to three times the amount of the current tree removal application permit fee.

Section 2. Subsection b of Subsection 7 of Subsection B of Section 17.20.040 (Form and Contents) of Chapter 17.20 (Map Requirements-Five or More Parcels) of Title 17 (Subdivisions) is hereby amended to read as follows:
b. Type, diameter at breast height, and canopy of any protected trees, significant trees, street trees, public trees, or a community of trees as defined by Chapter

12.32 (Protected and Significant Trees) on public and private property. Any trees proposed to be removed shall be so indicated and shall obtain a permit as required by Chapter 12.32 (Protected and Significant Trees),

City of Morgan Hill
Ordinance No. XXXX, New Series

Section 3. Subsection b of Subsection 7 of Subsection A of Section 17.24.030 (Form and Content) of Chapter 17.24 (Map Requirements-Four or Less Parcels) of Title 17 (Subdivisions) is hereby amended to read as follows:
b. Type, diameter at breast height, and canopy of any protected trees, significant trees, street trees, public trees, or a community of trees as defined by Chapter

12.32 (Protected and Significant Trees) on public and private property. Any trees proposed to be removed shall be so indicated and shall obtain a permit as required by Chapter 12.32 (Protected and Significant Trees); Section 4. Section 18.12.080 (Setbacks) of Chapter 18.12 (Rules of Measurement) of Title 18 (Zoning) is hereby amended to read as follows:

A. Required Setback Area. Required setback areas shall be kept free of buildings and structures. Except as otherwise permitted, required setback areas shall be used only for landscaping, pedestrian walkways, driveways, uncovered off-street parking, recreational activities, or similar accessory activities.

B Setback Measurements. Setback distances shall be measured at right angles from the designated property line (e.g., front, interior side, street-side, rear) establishing a setback area line parallel to the designated property line at the required setback distance. See Figure

18.12-4. Designated property lines are determined as follows:

1. Front Property Line. The front property line shall be the narrowest property line which abuts a public or private street easement or drive-aisle. For corner lots, the front property line shall be the shortest street frontage, regardless of where the front door is located. For flag lots, the front property line shall be the property line that abuts the access corridor.

2. Rear Property Line. The rear property shall be the property line which is opposite and most distant from the front property line and most parallel to the front property line.

3. Side Property Line. The side property line shall be those property lines that are not the front or rear property lines.

4. Street Side Property Line. The street side property line shall be those side property lines that abuts a public or private street.

City of Morgan Hill
Ordinance No. XXXX, New Series

Figure 18.12-4: Setbacks

City of Morgan Hill
Ordinance No. XXXX, New Series

C. Planned Street Widening. Where a lot abuts a street designated for a future widening, required minimum setbacks shall be measured from the edge of the planned future right-ofway.

D. Future Street Right-of-Way. Where a future street right-of-way is planned or established, required minimum setbacks shall be measured from property lines that define the edge of the future right-of-way.

E. Alleys.

1. If side lot line abuts an alley, the lot line shall be treated as interior side lot line for the purpose of establishing minimum required setbacks.

2. The width of an adjoining alley is not included in the measurement of a required setback.

F. Irregularly Shaped Lots. Where the side lot lines converge to a point at the rear of the lot and make an angle ninety degrees or less, a line ten feet long within the lot, parallel to and at a maximum distance from the front lot line, shall be deemed to be the rear lot line for the purpose of determining the depth of the required rear setback area. Where the angle created by the convergence of two side lot lines at the rear of the lot is greater than ninety degrees, a line ten feet long measured from the point of convergence and perpendicular to the front lot line shall establish the location of the required rear setback line. See Figure 18.12-4.

Figure 18.12-4: Rear Lot Lines for Irregularly Shaped Lots G. Double-Frontage Lots. The location of the front and rear yard setbacks on double-frontage lots shall be determined by the development services director based on the placement of existing buildings on adjacent lots.

City of Morgan Hill
Ordinance No. XXXX, New Series

H. Measuring Structure Distance from Lot Lines. The distance of a structure from a lot line shall be measured as the distance between the lot line and the closest point on the exterior of a building or structure along a line at right angles to the lot line. See Figure 18.12-5.

Figure 18.12-5: Measuring Structure Distance from Lot Lines Section 5. Table 18.18-2 (Residential Attached Low Density Development Standards) within Section 18.18.030 (Development Standards) of Chapter 18.18 (Residential Attached Zoning Districts) of Title 18 (Zoning) is hereby amended to read as follows:

Table 18.18-2: Residential Attached Low Density Development Standards Residential Attached Low Density Subzones
RAL-3,500 RAL-3,000 Additional Standards
Site Requirements
Lot Area, Minimum
Duplex lots 7,000 sq. ft. 6,000 sq. ft.

Duplex corner lots 7,500 sq. ft. 6,500 sq. ft.

Duet lots 3,500 sq. ft. 3,000 sq. ft.

Duet corner lots 3,750 sq. ft. 3,250 sq. ft.

Multifamily and
other uses
3,500 sq. ft. 3,000 sq. ft.

Lot Width, Minimum
Duplex lots 70 ft. 70 ft.

Duplex corner lots 80 ft. 80 ft.

Duet and singlefamily attached lots 30 ft. 30 ft.

Duet and singlefamily attached corner 40 ft. 40 ft.

18.18.030.D

City of Morgan Hill
Ordinance No. XXXX, New Series

lots
Other uses allowed in
Table 18.18-1
50 ft. or as determined through the Conditional
Use Permit
Lot Depth, Minimum 85 ft. 85 ft.

Building Coverage,
Maximum
50% 50%
Site Area per
Dwelling Unit,
minimum
3,500 sq. ft. 3,000 sq. ft.

Structure
Requirements
Setbacks, Minimum 18.56.030
Front 20 ft. 20 ft. 18.18.030.E
Rear 15 ft.; or 20 ft. for
two-story, located
adjacent to a singlefamily district
15 ft.; or 20 ft. for
two-story, located
adjacent to a singlefamily district
Interior Side 5 ft. [1] 5 ft. [1]
Street Side 15 ft. 15 ft.

Height, Maximum 30 ft. 30 ft. 18.56.020
Notes:
[1] A zero-foot setback is acceptable for Duets along the property line on the shared building wall.

Section 6. Table 18.18-3 (Residential Attached Medium Density and High Density Development Standards) within Section 18.18.030 (Development Standards) of Chapter 18.18 (Residential Attached Zoning Districts) of Title 18 (Zoning) is hereby amended to read as follows:

Table 18.18-3: Residential Attached Medium Density and High Density Development Standards RAM RAH Additional Standards
Site Requirements
Lot Area, Minimum 6,000 sq. ft.;
4,500 sq. ft. for
corner lots
6,000 sq. ft.;
6,500 sq. ft. for
corner lots
Lot Width, Minimum 60 ft. 40 ft.

Lot Depth, Minimum 85 ft. 75 ft.

18.18.030.D

City of Morgan Hill
Ordinance No. XXXX, New Series

Building Coverage,
Maximum
60% 60%
Site Area per
Dwelling Unit,
Minimum
2,000 sq. ft. 1,100 sq. ft.

Structure
Requirements
Setbacks, Minimum 18.56.030
Front 15 15 18.18.030.E
Rear 20 15
Interior Side 5 [1] 5 [1]
Street Side 15 15
Height, Maximum 3 stories or 40 ft.,
whichever is less;
min. 10 ft. for roof
element on 3 story
structure
3 stories or 40 ft.,
whichever is less;
min. 10 ft. for roof
element on 3 story
structure

18.56.020
Notes:
[1] A zero-foot setback is acceptable for Duets along the property line on the shared building wall.

Section 7. Table 18.22-2 (Development Standards in Mixed Use Zoning Districts) within Section 18.22.040 (Development Standards) of Chapter 18.22 (Mixed Use Zoning Districts) of Title 18 (Zoning) is hereby amended to read as follows:

Table 18.22-2: Development Standards in Mixed Use Zoning Districts MU-D MU-N MU-F Additional
Standards
Site Requirements
Lot Area, Minimum 3,500 sq. ft. 6,000 sq. ft. 6,000 sq. ft.

Lot Width,
Minimum
40 ft. 60 ft. 60 ft.

City of Morgan Hill
Ordinance No. XXXX, New Series

Lot Depth,
Minimum
80 ft. 100 ft. 100 ft.

Floor Area Ratio,
Maximum

2.0 [1] 1.0 None
Residential Density
Minimum None 8 du/acre 7 du/acre
Maximum None 20 du/acre 24 du/acre
Building Coverage,
Maximum
None 75% None
Structure
Requirements
Setbacks See Table 18.22-3 18.56.030
Height, Maximum 3 stories and
45 ft. [2]
35 ft. [3,4] 35 ft. [3] 18.56.020
Notes:
[1] 2.25 FAR permitted on sites 22,000 sq. ft. or more. [2] Four stories and 55 ft. permitted on sites 22,000 sq. ft. or more. [3] 45 ft. permitted with a minimum of 10 ft. devoted to a roof element. [4] 40 ft. allowed for vertical mixed use, regardless of roof form.

Section 8. Table 18.24-1 (Permitted Land Uses in the Commercial Zoning Districts) within Section 18.24.020 (Land Use Regulations) of Chapter 18.24 (Commercial Zoning Districts) of Title 18 (Zoning) is hereby amended to read as follows:

Table 18.24-1 Permitted Land Uses in the Commercial Zoning Districts Key
P Permitted Use
A Administrative Use Permit
required
C Conditional Use Permit
required
— Use not allowed
Zoning District Additional
Regulations

CO CN CG CH CS

City of Morgan Hill
Ordinance No. XXXX, New Series

Residential Uses
Caretaker Quarters — — C — C
Nursing Homes and Long-Term
Care
C C C — —
Residential Care Facilities — C — — —
Public and Quasi-Public Uses
Colleges and Trade Schools — C C — —
Community Assembly C C C — —
Cultural Institutions C C C — C
Day Care Centers — C A — C
Government Offices — P P — C
Instructional Services P A A A A
Medical Offices and Clinics P P P A [4] C [4]
Schools, Public and Private C C C — —
Social Services C C C — C
Commercial Uses
Animal-Related Uses —
Animal Boarding — C C — C
Cat Café — — P — — Title 6
Veterinarian Clinics and
Hospitals

P A A A P
Banks and Financial Institutions P P P P P
Business Support Services — P P P P
Cinemas and Theatres — A A A A
Commercial Recreation, Indoor
≤ 15,000 sq. ft. C P P P P
> 15,000 sq. ft. — C C C C
Drive-Through and Drive-In
Facilities
C C C C C 18.92.040
Eating and Drinking Uses
Bars and Nightclubs — C C — —

City of Morgan Hill
Ordinance No. XXXX, New Series

Restaurants, Fast Food — C P P C
Restaurants, Sit-Down — C P P C
Tasting Rooms — C A P C
Funeral Parlors and Mortuaries — — C — C
Lodging Facilities
Hotels and Motels — C A P A
Mini-Storage — — C — C
Personal Services P P P — C
Plant Nurseries — — C — P
Professional Offices P P P P P
Retail Uses
Convenience Markets — C C C C
Convenience Market with Fuel
and Service Station
— C C C C
General Retail — P P P C
Home Improvement Centers — — P — P
Liquor Store — C C C C
Large Commodity Retail — — C — C
Vehicle-Related Uses
Convenience Market with Fuel
and Service Station
— C C C C
Fuel and Service Stations — C C C C
Towing and Impound — — — — C
Vehicle Rentals — C [2] C [2] P P
Vehicle Repair and Maintenance,
Minor
— — C — P
Vehicle Sales and Leasing — C [1] C [1] P P
Vehicle Washing — C C C C
Wholesaling — — C — P
Industrial Uses
Construction and Material Yards — — — — C

City of Morgan Hill
Ordinance No. XXXX, New Series

Food and Beverage Production
< 5,000 sq. ft. [3] — A A A A
5,000 sq. ft. to 10,000 sq. ft. [3] — A A C A
> 10,000 sq. ft. — — — — C
Research and Development — — — — C
Warehousing and Distribution,
Large and Small
— — — — C
Transportation, Communication,
and Utility Uses
Freight Terminals and Transfer — — — C —
Light Fleet-Based Services — C C — C
Parking Lots and Structures — — C — C
Recycling Facilities
Reverse Vending Machine — C C C C
Recycling Collection Facility — — — — C
Transportation Terminals — — — C
Utilities, Major — — C — C
Wireless Communications
Facilities
See Chapter 18.96
Other Uses
Accessory Uses See Chapter 18.44
Temporary Uses See Section 18.92.150
Notes:
[1] Allowed only when conducted entirely within an enclosed building without outdoor storage and display of vehicles.
[2] Vehicles stored outdoors must be fully screened from public view. [3] On-site wholesale or retail sales required.
[4] Reproductive health community clinics consistent with Government Code Section 65914.900 are permitted by right.

Section 9. Table 18.29-2 (Permitted Land Uses in the Form-Based Zoning Districts) within Section 18.29.070 (Land Use Standards) of Chapter 18.29 (Monterey Corridor Form-Based Code) of Title 18 (Zoning) is hereby amended to read as follows:

City of Morgan Hill
Ordinance No. XXXX, New Series

Table 18.29-2 Permitted Land Uses in the Form-Based Zoning Districts P = Permitted Use
A = Administrative Use Permit required (See Section 18.108.020 (Administrative Use Permits)) C = Conditional Use Permit required (See Section 18.108.030 (Conditional Use Permits)) T = Temporary Use Permit required (See Chapter 18.108.090 (Temporary Use Permits)) - = Use not permitted
Land Use Permit Required by Zone

FB-N FB-C FB-UG
Additional
Regulations
Residential Uses
Accessory Dwelling Unit (ADU) P P P See Chapter 18.84
Duplex/Duet P P P See Subsection

18.29.100.D
Group Housing P P P
Live/Work Unit P P P
Mixed-Use Residential P P P
Multi-Family Dwellings P P P See Subsection

18.29.070.C.3
Nursing Homes and Long-Term
Care
C C C
Residential Care Facilities P P P
Residential Care Facilities, Small P P P
Senior Housing, Independent
Living
P P P
Single-Family Attached Dwelling P P P
Single-Family Detached Dwelling P - -
Public and Quasi-Public Uses

City of Morgan Hill
Ordinance No. XXXX, New Series

College and Trade Schools C P P
Community Assembly C C C
Cultural Institutions A A A
Day Care Centers C C C
Emergency Shelters C C C See Section 18.92.050
Government Offices A A A
Home Day Care, Large P P P
Home Day Care, Small P P P
Hospitals - C C
Instructional Services A P P
Medical Offices and Clinics A P P
Park and Recreational Facilities P P P
Public Safety Facilities C C C
Schools, Public and Private C C C
Social Services C C C
Commercial Uses
Cat Café P P P See Title 6
Veterinarian Clinics and Hospitals C C C
Banks and Financial Institutions P P P
Business Support Services P P P
Cinemas and Theaters A A P
Commercial Recreation, Indoor
≤ 15,000 sq. ft. A P P

City of Morgan Hill
Ordinance No. XXXX, New Series

> 15,000 sq. ft. A A A
Drive-Through Facilities - C C See Subsection

18.29.070.C.2
Eating and Drinking Uses
Bars and Nightclubs - C C
Restaurant, Fast Food C P P
Restaurant, Sit Down P P P
Tasting Rooms A P P
Farmers Markets A A A
Lodging Facilities
Bed and Breakfast P P P
Hotels and Motels C C C
Personal Services A P P
Professional Offices A P P
Retail
Convenience Market A P P See Section 18.92.030
General Retail A P P
Vehicle-Related Uses
Fuel and Service Station - - C
Vehicle Rentals - - C
Vehicle Washing - - C
Industrial Uses
Food and Beverage Production
< 5,000 sq. ft.1 - P P

City of Morgan Hill
Ordinance No. XXXX, New Series

5,000 sq. ft. to 10,000 sq. ft.1 - C C
Transportation, Communication, and Utility Uses
Parking Lots or Structures2 C C C
Recycling Facilities
Reverse Vending Machines - C C
Transportation Terminals - - -
Wireless Communication
Facilities
See Chapter 18.96
Other Uses
Accessory Use(s) See Chapter 18.44
Home Occupations See Section 18.92.060
Temporary Use(s) See Section 18.92.150
Urban Agriculture
Community Garden A A A
Home Gardens P P P
Urban Farm C C C
Notes:

1. On-site wholesale or retail sales required.

2. When proposed as a primary use.

Section 10. Table 18.40-2 (Medium Density Residential Development Standards) within Section 18.40.050 (Development Standards) of Chapter 18.40 (Alternative Standards for Medium Density Residential Development) of Title 18 (Zoning) is hereby amended to read as follows:

Table 18.40-2: Medium Density Residential Development Standards Housing Type

City of Morgan Hill
Ordinance No. XXXX, New Series

Duet Courtyard SFD TH Duplex Multi
Lot Area (min sq. ft.) [1] [2] 3,000 1,920—
2,999
4,500—
5,500
1,440—
3,999
6,000 6,000
Lot Width (min) 30 ft. 24 ft. 40 ft. 24 ft. 60 ft. 60 ft.

Lot Depth (min) 85 ft. 60 ft. 80 ft. 60 ft. 85 ft. 85 ft.

Lot Coverage (max) [3] 50% 45% N/A 55% 1 story:
40%
2+
story:
50%
60%
Floor Area Ratio (max) N/A N/A 52% N/A N/A N/A
Height See base zoning district
Setbacks
Front [4] 10 ft. N/A 15 feet N/A 20 ft. 15
Interior Side 3 ft. [5] 5 ft. [7] 4 ft. [6] N/A 5 ft. [7] 5 ft.

Street Side 6 ft. 5 ft. 8 ft. 5 ft. 10 ft. 15 ft.

Rear 10 ft. N/A 15 ft. N/A 15 ft. 20 ft.

Notes:
[1] Subject to the density requirements specified in the General Plan. [2] Standards are for individual lots and not for the subdivision as a whole. [3] Lot coverage limits apply to individual, subdivided parcels and to accessory structures as well as the primary residential structure on the site. Development in the RAL and RAM zoning districts is also subject to an aggregate lot coverage limit for the entire subdivision. See Section

18.18.060.A.
[4] Additional requirements apply for street-facing garages. See Section 18.40.070.H.7. [5] A zero-foot setback is acceptable for Duets along the property line on the shared building wall
[6] A reduced setback (as low as zero feet) is acceptable on one side yard; provided, that the sum of both side yard setbacks is at least eight feet.
[7] A reduced setback (as low as zero feet) is acceptable on one side yard; provided, that the sum of both side yard setbacks is at least ten feet.

City of Morgan Hill
Ordinance No. XXXX, New Series

Section 11. Subsection A of Section 18.44.030 (Accessory Structures in Residential Zoning Districts) of Chapter 18.44 (Accessory Structures and Uses) of Title 18 (Zoning) is hereby amended to read as follows:

A. Applicability. This section applies to the following types of accessory structures in residential zoning districts.

1. Roofed structures, including, but not limited to, detached garages, carports, sheds, shade structures, play structures, covered dog enclosures, and gazebos, over seven feet in height and/or one hundred twenty square feet in size.

2. Detached open, unroofed, and roofed structures such as decks.

3. Trellises and other similar structures over seven feet in height.

4. Mechanical equipment and mechanical equipment enclosures such as solar panels and water storage tanks, heating, and air conditioning equipment, and other similar mechanical equipment detached from the main building on the site.

5. Pools, spas and hot tubs.

6. Ponds eighteen inches or more in depth.

7. Fireplaces, barbeque structures, statuary, fountains, and other similar ornamental features.

Section 12. Subsection B of Section 18.44.030 (Accessory Structures in Residential Zoning Districts) of Chapter 18.44 (Accessory Structures and Uses) of Title 18 (Zoning) is hereby amended to read as follows:

B. Limitation on Use.

1. Accessory structures may not be used as living space which is heated and/or cooled.

2. Accessory structures, including pool houses, may be equipped with a half bath only (toilet and sink).

3. An accessory structure that does not comply with these use limitations shall be considered an accessory dwelling unit subject to the requirements of Chapter 18.84 (Accessory Dwelling Units).

Section 13. Subsection A of Section 18.64.070 (Landscaping Maintenance and Enforcement) of Chapter 18.64 (Landscaping) of Title 18 (Zoning) is hereby amended to read as follows:

A. Maintenance Required.

1. Approved Plans. Landscaping shall be maintained consistent with the plans approved as part of the design permit. Any significant alteration to the landscaping requires development services director’s approval.

2. Dead and Dying Plants. All landscaping shall be maintained free of physical damage or injury from lack of water, excess chemical fertilizer or other toxic chemical, blight or disease. Dead or dying plants shall be removed and replaced with landscaping of similar size and maturity.

3. Weed Removal. Landscaping shall be kept free from weeds and undesirable grasses.

City of Morgan Hill
Ordinance No. XXXX, New Series

4. Tree Pruning. Trees shall be allowed to grow their natural size and shape. Periodic pruning shall be as appropriate for the health of the tree species and may not exceed twenty-five percent of the tree height or volume at any given time unless the development services director approves a tree removal permit in accordance with Municipal Code Chapter 12.32 (Protected and Significant Trees).

5. Tree Topping/Heading Cuts. Topping/heading cuts that reduce a tree's size and height by shortening of limbs or branches back to a predetermined crown limit is prohibited unless the development services director approves a tree removal permit in accordance with Municipal Code Chapter 12.32 (Protected and Significant Trees).

Section 14. Subsection G is hereby added to Section 18.72.030 (Required Parking Spaces) of Chapter 18.72 (Parking and Loading) of Title 18 (Zoning) to read as follows:

G. Parking Not Required within One-Half Mile of a Major Transit Stop.

1. Minimum parking requirements identified within this Section shall not be required within one-half mile of a major transit stop as defined in Public Resources Code Section 21155.

2. The city may impose minimum parking requirements within one-half mile of a major transit stop if written findings are made that not imposing or enforcing minimum parking requirements on the development would have a substantially negative impact on any of the following:
a. The city’s ability to meet its share of the regional housing need for low- and very low-income households.
b. The city’s ability to meet any special housing needs for the elderly or persons with disabilities.
c. Existing residential or commercial parking within one-half mile of the housing development project.

3. For a housing development project, Subdivision 18.72.030.G.2 shall not apply if the housing development project satisfies any of the following:
a. The development dedicates a minimum of twenty percent of the total number of housing units to very low-, low-, or moderate-income households, students, the elderly, or persons with disabilities.
b. The development contains fewer than twenty housing units. c. The development is subject to parking reductions based on the provisions of any other applicable law.

4. Notwithstanding the above, an event center shall provide parking for employees and other workers.

5. This subsection shall not apply to hotels, motels, bed and breakfasts, or other transient lodging.

City of Morgan Hill
Ordinance No. XXXX, New Series

6. This subsection shall not reduce, eliminate, or preclude new multi-family residential or non-residential development to provide electric vehicle supply equipment installed parking spaces or parking spaces that are accessible to persons with disabilities.

Section 15. Section 18.84.010 (Purpose) of Chapter 18.84 (Accessory Dwelling Units) of Title 18 (Zoning) is hereby amended to read as follows:

This chapter establishes standards for the location and construction of accessory dwelling units and junior accessory dwelling units (jointly referred to "accessory units" in this chapter) in conformance with Government Code Sections 66314 through 66332 and 66333 through 66339, respectively. These standards are intended to allow for accessory units as an important form of affordable housing while preserving the character and integrity of residential neighborhoods in Morgan Hill, and to comply with State law.

Section 16. Section 18.84.050 (Site and Design Standards) of Chapter 18.84 (Accessory Dwelling Units) of Title 18 (Zoning) is hereby amended to read as follows:

A. General.

1. Accessory units are subject to the same requirements that apply to primary dwellings on the same lot in the applicable zoning district except as specified in this section.

2. An accessory dwelling unit shall be deemed to be an accessory use or an accessory building and shall not be considered to exceed the allowable density, building coverage, or floor area ratio for the lot upon which it is located, and shall be deemed to be a residential use that is consistent with the existing general plan and zoning designations for the lot.

B. Number of Accessory Units.

1. Single-Family Dwelling. No more than one detached accessory dwelling unit, no more than one attached accessory dwelling unit, and no more than one junior accessory dwelling unit is permitted on a single lot with an existing or proposed single-family dwelling.

2. Proposed Multifamily Dwellings. Proposed multifamily dwelling structures may have no more than two detached accessory dwelling units on a lot.

3. Existing Multifamily Dwellings.
a. Existing multifamily dwelling structures may have no more than eight detached accessory dwelling units on a lot. However, the number of accessory dwelling units allowable pursuant to this clause shall not exceed the number of existing units on the lot.
b. Existing multifamily dwelling structures may also have no more than one accessory dwelling unit or up to twenty-five percent of the existing multifamily dwelling units, whichever is larger, within portions of an existing multifamily dwelling structure that are not used as livable space, including, but not limited to, storage rooms, boiler rooms, passageways, attics, basements, or garages, if each unit complies with state building standards for dwellings.

C. Relationship to Primary Dwelling.

City of Morgan Hill
Ordinance No. XXXX, New Series

1. An accessory dwelling unit may be within, attached to, or detached from the primary dwelling. Attachment to the primary dwelling shall be by sharing a common interior wall or common roof. No passageway (as defined in Government Code Section 66313(i)) is required in conjunction with the construction of an accessory dwelling unit.

2. An accessory dwelling unit shall have its own kitchen, bathroom facilities, and exterior access separate from the primary dwelling.

3. The city shall allow junior accessory dwelling units as defined in Government Code Section 66313(d) to be constructed within the walls of the proposed or existing single-family residence with a separate entrance from the main entrance to the primary dwelling, an efficiency kitchen (consisting of a cooking facility with appliances, a food preparation counter and storage cabinets that are of reasonable size in relation to the size of the junior accessory dwelling unit) and shared or independent bathroom facilities. If a junior accessory dwelling unit does not include a separate bathroom from the single-family residence, the junior accessory dwelling unit shall include an interior entry to the main living area of the single-family residence.

4. The accessory unit shall be clearly subordinate to the primary dwelling by size, appearance, and location on the parcel and shall comply with all applicable building and safety codes.

5. A detached accessory dwelling unit that does not exceed four-foot side and rear yard setbacks for a proposed or existing single-family dwelling may be combined with a junior accessory dwelling unit.

D. Maximum Unit Size.

1. Except as specified in this subsection, Table 18.84-1 identifies the maximum floor area for detached and attached accessory dwelling units.

Table 18.84-1: Maximum Accessory Dwelling Unit Floor Area Zoning District Maximum Floor Area
RE 10 1,200 sq. ft.

RE 2.5 1,000 sq. ft.

RE 1 900 sq. ft. (1 bedroom)
1,000 sq. ft. (2 or more bedrooms)
All other zoning
districts
850 sq. ft. (1 bedroom)
1,000 sq. ft. (2 or more bedrooms)

2. The maximum floor area of junior accessory dwelling units shall be five hundred square feet.

3. The conversion of an existing accessory structure to an accessory dwelling unit, within the same location and to the same dimensions as the existing accessory structure, is not subject to unit size requirements.

4. An accessory dwelling unit or junior accessory dwelling unit created within an existing accessory structure or a portion of the existing or proposed single-family

City of Morgan Hill
Ordinance No. XXXX, New Series

dwelling may be expanded up to one hundred fifty square feet beyond the same physical dimensions as the existing accessory structure to accommodate ingress and egress only.

5. An attached accessory dwelling unit permitted within the front yard setback, pursuant to Subsection E of this Section, shall be limited to 800 square feet.

E. Property Line Setbacks.

1. No setback is required for an existing accessory structure or living area as defined by Government Code Section 66313 that is converted to an accessory dwelling unit.

2. No setback is required for an accessory dwelling unit constructed in the same location and the same footprint as an existing accessory structure.

3. A minimum setback of four feet from the side and rear property lines is required for an accessory dwelling unit.

4. An attached or detached accessory dwelling unit shall comply with the front setback requirements of the applicable zoning district. If an attached or detached accessory dwelling unit of at least eight hundred square feet in size is not permitted due to front, side, and rear setback requirements, then an attached accessory dwelling unit may be permitted within the front setback that complies with Section 18.92.080 (Intersection Sight Distance).

F. Height.

1. An attached accessory dwelling unit shall be limited to twenty-five feet in height or the height limitation of the applicable zoning district, whichever is less.

2. A detached accessory dwelling unit that does not comply with the side and rear setbacks of the applicable zoning district shall be limited to sixteen feet in height, unless any of the following applies:
a. On a lot within one-half mile walking distance of a major transit stop or a highquality transit corridor, as defined in Section 21155 of the Public Resources Code, a detached accessory dwelling unit up to eighteen feet in height, and an additional two feet in height to accommodate a roof pitch, is permitted. b. On a lot with an existing or proposed multifamily, multi-story dwelling, a detached accessory dwelling unit up to eighteen feet in height is permitted.

G. Parking.

1. Except as specified in this subsection, required minimum on-site parking for accessory dwelling units shall be one parking space per accessory dwelling unit. Onsite parking spaces for accessory dwelling units may be covered or uncovered and may be located within the front, side or rear setback areas (may be tandem).

2. No off-street parking is required for an accessory dwelling unit in the following cases:
a. The accessory dwelling unit is located within one-half mile walking distance of public transit.

City of Morgan Hill
Ordinance No. XXXX, New Series

b. The accessory dwelling unit is located within an architecturally and historically significant historic district.
c. When an accessory dwelling unit is constructed within the primary residence or an accessory structure.
d. When on-street parking permits are required but not offered to the occupant of the accessory dwelling unit.
e. When there is a car share vehicle pick-up/drop-off location within one block of the accessory dwelling unit.

3. When an existing garage, carport, covered parking structure, or uncovered parking space is demolished in conjunction with the construction of an accessory dwelling unit, or converted to an accessory dwelling unit, the on-site parking spaces are not required to be replaced.

4. On-site parking spaces are not required for junior accessory dwelling units.

H. Design. The design of accessory units shall be compatible with the design and scale of the primary dwelling (using substantially the same landscaping, color, materials and design on the exterior) and the general character of the neighboring residential properties.

I. Doors and Windows. Openings (e.g., doors and windows) on exterior walls that are closest to and face adjacent residentially-zoned properties shall be designed to minimize privacy impacts and maintain access to light and ventilation on adjacent properties.

J. Utility Connections.

1. General. An accessory unit shall not be considered a new residential use for the purposes of calculating local agency connection fees or capacity charges for utilities, including water and sewer service unless constructed in conjunction with a new single-family residence.

2. Accessory Units in Existing Space. For accessory units within an existing primary dwelling, garage, or other accessory structure, the city shall not require an applicant to install a new or separate utility connection directly between the accessory unit and the utility or impose a related connection fee or capacity charge.

3. Attached and Detached Accessory Dwelling Units. Consistent with Government Code Section 66013, the connection may be subject to a connection fee or capacity charge that shall be proportionate to the burden of the proposed accessory dwelling unit, based upon either its size or the number of its plumbing fixtures, upon the water or sewer system. This fee or charge shall not exceed the reasonable cost of providing this service.

4. Fire Sprinklers. The installation of fire sprinklers shall not be required in an accessory unit if sprinklers are not required for the primary residence.

K. Septic Tank Disposal System.

1. In areas where septic tank disposal systems are allowed due to lack of sanitary sewer lines, detached accessory dwelling units shall be served by separate and independent septic tank sewage disposal systems. All leach lines shall be designed and installed in

City of Morgan Hill
Ordinance No. XXXX, New Series

accordance with current septic system requirements of the Santa Clara County Environmental Health Services.

2. In other areas of the city, accessory dwelling units shall be connected to the sanitary sewer system through the existing lateral line serving the primary dwelling unit.

Section 17. Subsection G of Section 18.88.020 (Definitions) of Chapter 18.88 (Signs) of Title 18 (Zoning) is hereby amended to read as follows:

G. Types of Signs.

1. A-Frame Sign. A portable sign with two opposing flat faces designed to be selfsupporting on the ground.

2. Awning Sign. A sign incorporated into, attached, or painted on the face or valance of an awning.

3. Banner Sign. A sign composed of lightweight, flexible, non-rigid material either enclosed or not enclosed in a rigid frame.

4. Beacon Sign. A beam of light designed to draw attention to a particular location.

5. Changeable Copy Sign. A sign with copy that that can be changed or rearranged electronically or manually without altering the face or surface of the sign.

6. Directional Signs. A sign that provides directions to a place, structure or use, excluding signs installed by a public agency.

7. Directory Sign. A sign which lists and identifies the location of the occupants of a multi-tenant building or site.

8. Hospital Sign. A sign for a medical facility providing patient services primarily on an in-patient basis.

9. Inflatable Balloon Sign. A sign consisting of a flexible envelope of nonporous materials that gains its shape from inserted air or other gas.

10. Feather Sign. A sign composed of durable lightweight fabric with a sturdy frame enclosing only a portion of the material’s edge so that it can remain upright and still be flexible in the breeze, generally shaped to be tall and narrow when affixed into the ground or other bottom support, affixed to a pole. Includes Teardrop Signs.

11. Flags. Fabric, textile, or material with colors and/or patterns which display a symbol of a nation, state, company, or idea.

12. Freeway-Oriented Sign. A sign intended to be viewed primarily by motorists traveling on Highway 101.

13. Freestanding Sign. A sign attached to an independent, freestanding structure that is

City of Morgan Hill
Ordinance No. XXXX, New Series

not attached to a building.

14. Marque Sign. A sign made a part of or in any manner attached to a marquee.

15. Monument Signs. A freestanding sign that is supported by a solid-appearing base constructed of permanent material.

16. Pole Sign. A freestanding sign that is supported by one or more poles which do not have a solid-appearing base constructed of permanent material.

17. Political Sign. A temporary sign that encourages a particular vote in a scheduled election.

18. Post Sign. A temporary sign suspended from a horizontal swingpost that is attached to a vertical post mounted in the ground.

19. Projecting Sign. A sign permanently attached to a building or wall such that the sign face or faces are perpendicular to the building or wall.

20. Property Identification Sign. A sign identifying the name of a residential property or subdivision with ten or more units.

21. Roof Signs. A sign erected upon, against, or directly above a roof above the parapet of a building.

22. Site Sign. A temporary sign allowed on sites with uses under construction or not yet occupied.

23. Suspended Sign. A sign attached to or suspended from the underside of an arcade, canopy, or marquee and oriented to pedestrian traffic.

24. Wall Sign. A sign attached to or painted on the exterior wall of a structure with the display surface of the sign approximately parallel to the building wall.

25. Window Sign. A sign posted, painted, placed, or affixed in or on a window exposed to public view.

Section 18. Subsection A of Section 18.88.040 (Signs Allowed Without Permits) of Chapter

18.88 (Signs) of Title 18 (Zoning) is hereby amended to read as follows:

A. Types of Signs. The following signs are exempt from the permit requirements of this chapter and shall not be counted towards the allowable sign area or number of signs on a parcel:

1. A-Frame Signs. Each commercial business location shall be permitted one A-frame sign per street frontage. The sign shall not exceed four feet in height or a width of three feet, shall be unlighted, and shall be stored indoors during non-business hours.

A multiple-occupancy building shall constitute one business location for the purpose

City of Morgan Hill
Ordinance No. XXXX, New Series

of determining the number of signs permitted. A-frame signs shall not obscure or visually impair vehicular traffic and shall not be placed within a public right-of-way or on publicly owned property or affect access to a structure.

2. Alley and Service Area Signs. Signs fronting an alley or service area mounted flat against a wall and not exceeding twenty-five square feet in aggregate area.

3. Commemorative Plaques. One commemorative plaque identifying a building name, date of construction, or similar information that is cut into, carved, or made of stone, concrete, metal, or other similar permanent material.

4. Decorations. Holiday and cultural observance decorations on private property which do not include any commercial advertising.

5. Directional Signs. On-site directional signs located entirely on the property to which they pertain, identifying direction to parking, restrooms, and similar public facilities, each not exceeding five feet in height and five square feet in area for non-residential uses and two square feet for residential uses.

6. Directory Signs. One directory sign per street frontage as follows:
a. Maximum area: One square foot per tenant up to twenty-four square feet. b. Maximum height: Six feet if freestanding.
c. Internal illumination prohibited.

7. Feather Signs. Up to three feather signs may be allowed for thirty days after the initial opening (i.e. grand opening) of a business or housing development. The sign shall not exceed nine feet in height or a width of three feet and shall be unlighted. The signs shall not obscure or visually impair vehicular traffic and shall not be placed within a public right-of-way or on publicly owned property or affect access to a structure.

8. Flags. Flags bearing noncommercial messages or graphic symbols as follows:
a. No more than three flags are permitted per parcel.
b. For flags flown on a flagpole longer than six feet, the longest dimension of the flag shall not exceed one-third the height of the flagpole; otherwise the longest flag dimension shall not exceed six feet.

9. Government Signs. Signs installed by a governmental agency, including signs advertising community activities and local nonprofit, civic, or fraternal organizations.

10. House Number and Nameplates. House numbers and nameplates up to four square feet for each residential dwelling.

11. Informational Signs. Signs with information for the safety and convenience of the

City of Morgan Hill
Ordinance No. XXXX, New Series

public such as address, hours and days of operation, whether a business is open or closed, no smoking notices, up to three square feet per sign and ten square feet in total.

11. Internal Signs. Signs within a building, or on the premises of a building, that are not visible from the public right-of-way and are intended for interior viewing only.

12. No Trespassing Signs. "No trespassing" signs, each not more than one square foot in size, placed at each corner and each entrance to property, and at intervals of not less than one hundred feet, or in compliance with the requirements of state or federal law.

13. Non-Commercial Bulletin Boards. One bulletin board on a parcel occupied by a noncommercial place of public assembly, with a maximum area of twelve square feet.

14. Political Signs. Temporary political signs consistent with Section 18.88.120 (Temporary Signs) that are generally placed not sooner than 90 days prior to the scheduled election and are typically removed within 10 days after that election and has a statement of responsibility filed with the city certifying a person who will be responsible for removing the temporary political sign and who will be responsible for any incurred violations of this Chapter.

15. Real Estate Listings. Real estate listings posted in the window of a real estate office, with a maximum area of twenty-five percent of the total window area.

16. Restaurant Menu Signs. Restaurant menu signs attached to a building, with a maximum area of three square feet.

17. Temporary Signs. Temporary signs consistent with Section 18.88.120 (Temporary Signs).

18. Traffic-Control Devices. Official traffic-control devices in accordance with Municipal Code Chapter 10.16 (Traffic-Control Devices)
Section 19. Subsection A of Section 18.88.120 (Temporary Signs) of Chapter 18.88 (Signs) of Title 18 (Zoning) is hereby amended to read as follows:

A. Residential Zoning Districts. Temporary signs in residential zoning districts shall comply with the standards in Table 18.88-1.

Table 18.88-1: Temporary Residential Sign Standards
Type of Temporary Sign
Window, Wall, Freestanding,
and Post Signs
Site Signs
Number of Signs No max. 1 per property frontage; 2
max.

Area Per Sign 6 sq. ft. max. 32 sq. ft. max.

Area for All Signs Combined 24 sq. ft. max. per parcel 64 sq. ft. max. per site

City of Morgan Hill
Ordinance No. XXXX, New Series

Sign Height 6 ft. max. 8 ft. max. sign face, 12 ft.
max. total
Setback from Property Line No min. setback 5 ft. min.

Illumination Not permitted
Duration See 18.88.120.C
Other Requirements — Allowed only on sites with
residential uses under
construction or not yet
occupied.

Section 20. Subsection C of Section 18.88.120 (Temporary Signs) of Chapter 18.88 (Signs) of Title 18 (Zoning) is hereby amended to read as follows:

C. Duration. Temporary signs in all zoning districts shall be removed the earliest of when:

1. A commercial message is obsolete and has become misleading (e.g., a "for lease" or "for sale" sign in front of a building that is leased or sold);

2. The sign falls into disrepair; or

3. The sign has been displayed for the maximum number of days shown in Table 18.88-

3. Table 18.88-3: Temporary Sign Duration Standards
Sign Type and Material Maximum Duration within a twelve (12) month period
Wall, Freestanding, Banner, and Window
Signs
Paper or cardboard sign face 3 months
Laminated paper; plastic lined polyethylene
bags and comparable materials
3 months
Wood, corrugated plastic, metal, or vinyl sign
face
3 months
Post Signs
Wood, corrugated plastic, or metal sign face
and finished wood or metal structure
6 months
Site Signs
Vinyl sign face 1 month

City of Morgan Hill
Ordinance No. XXXX, New Series

Corrugated plastic sign face 6 months
Wood or metal sign face 6 months
Section 21. Subsection C of Section 18.88.140 (Violations and Enforcement) of Chapter

18.88 (Signs) of Title 18 (Zoning) is hereby amended to read as follows:

C. Removal of Hazardous and Illegal Signs.

1. The city may immediately remove or cause the removal of any sign that places the public in immediate peril or that is located within the public right-of-way.

2. For illegal signs that do not place the public in immediate peril and are located on private property, the city shall serve the business owner, property owner, or person responsible for the sign a written certified notice that:
a. Describes the physical characteristics of the subject sign. b. Explains the nature of the violation.
c. States that the sign shall be removed or brought into compliance with this article within ten days after the notice is received.
d. States that the city may remove the sign if the business owner, property owner, or person responsible for sign does not correct the violation within ten days after the notice is received.
e. States that the city may destroy the illegal sign if it is not retrieved within ten days after removal by the city.
f. States that the business owner, property owner, or person responsible for sign shall be responsible for all costs associated with the removal, storage, and destruction of the sign.

3. If an illegal sign is not removed or brought into compliance within ten days after a notice is received, the city may issue a citation to the business owner, property owner, or person responsible for the sign as provided in Chapter 18.120 (Enforcement) and Municipal Code Title 1 (General Provisions) and may remove or cause the removal of the sign.

4. Any accessory structures, foundations, or mounting materials which are unsightly or a danger to the public health, safety, and welfare shall be removed at the time of the sign removal.

Section 22. Subsection L of Section 18.124.030 (Public and Quasi-public Uses) of Chapter

18.124 (Land Use Definitions) of Title 18 (Zoning) is hereby amended to read as follows:

City of Morgan Hill
Ordinance No. XXXX, New Series

L. Medical Offices and Clinics. Facilities where medical, mental, dental, or other personal health services are provided on an outpatient basis using specialized equipment. Includes offices for physicians, dentists, and optometrists, diagnostic centers, blood banks and plaza centers, and emergency medical clinics offered exclusively on an out-patient basis. May include educational aspects such as medical instruction and/or training as well as house a laboratory, radiology/imaging, pharmacy, rehabilitation and other similar services as accessory uses. Excludes "hospitals." Includes reproductive health community clinics consistent with Government Code Section 6514.900 that provide medical, surgical, counseling, or referral services relating to the human reproductive system, including services relating to pregnancy or the termination of a pregnancy Section 23. Subsection B of Section 18.124.040 (Commercial Uses) of Chapter 18.124 (Land Use Definitions) of Title 18 (Zoning) is hereby amended to read as follows:

B. Animal-Related Uses.

1. Animal Boarding. A facility for keeping, boarding, training, breeding or maintaining four or more dogs, cats, or other household pets not owned by the facility owner or operator. Includes kennels, pet day care, and animal shelters.

Excludes "veterinarian clinics and hospitals" and pet shops that provide grooming service.

2. Cat Café. An establishment whose principal business includes a restaurant/café at which cats may be adopted by patrons during normal business hours and boarded during off-business hours with a maximum of twenty (20) cats permitted at any time on the premises. All cats made available for adoption at the cat café shall be obtained from an animal rescue organization, shall be spayed or neutered, and shall have received all required vaccinations prior to being permitted at the cat café premises. The cat café shall comply with Title 6 (Animals) and the Santa Clara County Department of Environmental Health.

2. Equestrian Centers. A commercial or private facility created and maintained for accommodating, training or competing horses. May includes barn or stables, riding halls, and riding academies.

3. Veterinarian Clinics and Hospitals. Office and medical treatment facilities used by veterinarians where animals receive medical and surgical treatment, including large and small animal veterinary clinics and animal hospitals. Grooming and temporary boarding of animals for thirty days is included if incidental to the hospital use.

Excludes "animal boarding" and pet stores ("retail sales").

Section 24. Subsection 1 of Subsection S of Section 18.128.020 (Definitions) of Chapter

18.128 (General Terms) of Title 18 (Zoning) is hereby amended to read as follows:

1. Setback. The minimum distance between by which any building or structure must be separated from a lot line, public or private street easements, or drive-aisles.

Section 25. Subsection A of Section 18.152.030 (Definitions) of Chapter 18.152 (Agricultural

City of Morgan Hill
Ordinance No. XXXX, New Series

Mitigation) of Title 18 (Zoning) is hereby amended to read as follows:

A. Agricultural Land. For "agricultural land" that requires off-setting preservation/mitigation under this agricultural lands preservation program, agricultural land is defined as land that is depicted on the current map of the Farmland Mapping and Monitoring Program (FMMP) of the California Department of Conservation as Prime Farmland, Farmland of Statewide Importance, and Unique Farmland and that was not subsequently developed for nonagricultural use prior to August 1, 2014 or subsequently developed per the provisions of this ordinance. Lands identified as grazing land are not subject to the offsetting preservation/mitigation requirements set forth in this policy.

Section 26. 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 27. Effective Date; Posting. This Ordinance shall take effect on the 31st day following adoption. 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 ___ DAY OF ______, 2025, AND WAS FINALLY ADOPTED AT A MEETING OF THE CITY COUNCIL HELD ON THE ___ DAY OF ________, 2025, 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

City of Morgan Hill
Ordinance No. XXXX, New Series

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 ________, 2025.

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

DATE: _____________________ _____________________________ MICHELLE BIGELOW, City Clerk

GPA 2024-0001 & ZA2024-0002
MU-F General Plan Amendment &
Miscellaneous Code Amendments
January 15, 2025

Mixed Use Flex General Plan Amendment:
• Eliminate the Floor Area Ratio (FAR) for the Mixed Use Flex land use designation
Zoning Amendment:
• Chapter 12.32 (Restrictions on Removal of Significant Trees) • Various sections of Title 18 (Zoning)
o Implements Assembly Bill 2085 (reproductive health community clinics) o Implements Senate Bill 477 and Senate Bill 1211 (Accessory Dwelling Units) o Implements Assembly Bill 2097 (parking provisions)
o Implements minor amendments, provide further clarification, or expand on certain topics
Request:

Adopt Resolution & Ordinance approving the amendments as recommended by Planning Commission on August 27, 2024 and December 10, 2024 Project
1

Mixed Use Flex General Plan
Amendment
2 Amend page CNF-13 description of Mixed Use Flex Designation as follows:

Mixed Use Flex. The Mixed Use Flex designation, which is primarily applied to properties along the Monterey Road corridor north and south of downtown, allows for a mix of residential, commercial, and office uses applied either vertically (i.e., one structure with multiple uses) or horizontally (i.e., structures with different land uses located adjacent to one another). Density should transition from higher to lower at the ends of Monterey corridor. The Mixed Use Flex designation allows 7 to 24 units per acre and a maximum FAR of 0.5. Prior to development of Residential or Mixed-Use projects within the Mixed Use Flex designation a block level master plan is required to identify how commercial uses will be incorporated within the development of the block and how individual development projects will connect with each other. Commercial development may proceed without preparation of a block level master plan consistent with the Commercial designation.

Purpose to Remove Mixed Use
Flex FAR
3 1. Align with State regulations
The proposed text amendment will address this change in context by referring to State law and by removing a standard that is no longer an effective limitation. This removes a potential point of confusion.

2. Align with the Monterey Corridor Form-Based Code
Removing the current density range from the General Plan text will remove an inconsistency between that text and the Monterey Form-Based Code.

3. Equitable conditions for residential and commercial
development
The proposed text amendment will grant commercial
development the same density allowances as residential to provide equitable conditions for the two land uses.

• Monterey Corridor is intended to be redeveloped as a
“vibrant mixed-use corridor that encourages walking and biking” where “a range of commercial and office uses
will be located within close proximity to attached
residential units”
• General Plan also calls for the subsequent adoption of implementation actions, which was achieved through the
adoption of the Monterey Corridor Form-Based Code
• The current density range stated in the General Plan will not support the achievement of the walkable, mixed-use
corridor; the proposed text amendment will align the text of the General Plan with the City’s overarching vision
General Plan Consistency
4

Chapter 12.32 (Restrictions on
Removal of Significant Trees)
5 • Rename Chapter 12.32 to Protected and Significant Trees • Consistency with Tree Removal Application
• Update language
• Provide internal consistency
• Define Prune (>25% of canopy) and Trimming (<25% of
canopy)
• Require Tree removal permits for all trees
• Nonnative tree DBH of 13 inches or more
• Native tree DBH of 6 inches or more
• Replacement at a 1:1 ratio
• Penalties equal to valuation of the removed tree, cost of replacing tree, or 3 times the amount of the current Tree Removal Permit fee

Chapter 18.12 (Rules of
Measurement)
6 • Section 18.12.080 (Setbacks)
• Clarify definitions for setbacks and revised figures

Chapter 18.22 (Mixed Use Zoning
Districts)
7 Table 18.22-2: Development Standards in Mixed Use Zoning Districts
MU-D MU-N MU-F Additional
Standards
Site Requirements
Lot Area, Minimum 3,500 sq. ft. 6,000 sq. ft. 6,000 sq. ft.

Lot Width, Minimum 40 ft. 60 ft. 60 ft.

Lot Depth, Minimum 80 ft. 100 ft. 100 ft.

Floor Area Ratio,
Maximum

2.0 [1] 1.0 0.5None
Residential Density
Minimum  None 8 du/acre 7 du/acre
Maximum  None 20 du/acre 24 du/acre
Building Coverage,
Maximum
None 75% 50%None
Structure
Requirements
Setbacks See Table 18.22-3 18.56.030
Height, Maximum 3 stories and 45
ft. [2]
35 ft. [3,4] 35 ft. [3] 18.56.020

Table 18.24-1 (Permitted Land Uses in the Commercial Zoning Districts)
\
[4] Reproductive health community clinics consistent with Government Code Section 65914.900 are permitted by right.

Implements:

Assembly Bill 2085 (allow Reproductive Health Community Clinics by-right consistent with Government Code Section 65914.900)
Chapter 18.24 (Commercial
Zoning Districts)
8 Key
P Permitted Use
A Administrative Use Permit required
C Conditional Use Permit required
— Use not allowed
Zoning District

CO CN CG CH CS
Medical Offices and Clinics P P P A [4] C [4]
Cat Café  - - P - -

Table 18.29-2 (Permitted Land Uses in the Form-Based
Zoning Districts)
\
Cat Café: an establishment whose principal business includes a restaurant/café at which cats may be adopted by patrons during normal business hours and boarded during off-business hours with a maximum of twenty (20) cats permitted at any time on the premises.

Chapter 18.29 (Monterey Corridor
Form-Based Code)
9 Key
P Permitted Use
A Administrative Use Permit required
C Conditional Use Permit required
— Use not allowed
Zoning District

FB-N FB-C FB-UG
Cat Café  P P P

Chapter 18.72 (Parking and
Loading)
10 Section 18.72.030 (Required Parking Spaces)
• Parking Not Required within One-Half Mile of a Major Transit Stop
• Caltrain Station and VTA Bus Route 68
• Does not apply if written findings are made that the
development would have a substantially negative impact on any of the following:
• The city’s ability to meet its share of the regional housing need for low- and very low-income households.
• The city’s ability to meet any special housing needs for the elderly or persons with disabilities.
• Existing residential or commercial parking within one-half mile of the housing development project.

Implements:

Assembly Bill 2097

Chapter 18.84 (Accessory
Dwelling Units)
11 • ADU’s do not count towards density, building coverage, FAR • Existing Multifamily Dwellings are allowed up to 8 detached ADU’s
• Clarification that JADU’s kitchen is of reasonable size; JADU’s shall include an interior entry to the SFD if bathroom is not provided; and JADU’s may be expanded by 150 sq ft for
ingress/egress
• Require 1 parking space per ADU, unless exempt
Implements:

Senate Bill 477 and Senate Bill 1211

Chapter 18.88 (Signs)
12 Section 18.88.020 (Definitions)

1. Feather Sign. A sign composed of durable lightweight fabric with a sturdy frame enclosing only a portion of the material’s edge so that it can remain upright and still be flexible in the breeze. Includes Teardrop Signs.

2. Political Sign. A temporary sign that encourages a particular vote in a scheduled election.

Section 18.88.040 (Signs Allowed Without Permits)

1. A-Frame Signs. Each commercial business location shall be permitted one A-frame sign per street frontage. The sign shall not exceed four feet in height or a width of three feet.

2. Feather Signs. Up to three feather signs may be allowed for thirty days after the initial opening (i.e. grand opening) of a business or housing development. The sign shall not exceed nine feet in height or a width of three feet and shall be unlighted.

3. Political Signs. Temporary political signs that are generally placed not sooner than 90 days prior to the scheduled election and are typically removed within 10 days after that election and has a statement of responsibility filed with the city certifying a person who will be responsible for removing the temporary political sign and who will be responsible for any incurred violations.

Chapter 18.88 (Signs)
13 Sign Type and Material Maximum Duration within a twelve (12) month period
Wall, Freestanding, Banner, and Window
Signs
Paper or cardboard sign face 3 days
Laminated paper; plastic lined
polyethylene bags and comparable
materials
30 days
Wood, corrugated plastic, metal, or vinyl
sign face
3 months
Post Signs
Wood, corrugated plastic, or metal sign
face and finished wood or metal
structure
9 6 months
Site Signs
Vinyl sign face 1 month
Corrugated plastic sign face 6 months
Wood or metal sign face 1 year6 months
Table 18.88-3: Temporary Sign Duration Standards

Section 18.152.030 (Definitions)
• Agricultural Land. For "agricultural land" that requires offsetting preservation/mitigation under this agricultural lands preservation program, agricultural land is defined as land that is depicted on the 2010 current map of the Farmland
Mapping and Monitoring Program (FMMP) of the California Department of Conservation as Prime Farmland, Farmland of Statewide Importance, and Unique Farmland, and Farmland of Local Importance and that was not subsequently
developed for non-agricultural use prior to August 1, 2014 or subsequently developed per the provisions of this ordinance.

Lands identified as grazing land are not subject to the offsetting preservation/mitigation requirements set forth in this policy.

Chapter 18.152 (Agricultural
Mitigation)
14

Recommendation

1. Open/close public hearing

2. Adopt Resolution eliminating the Floor Area Ratio for the Mixed Use Flex land use designation

3. Waive reading of the Ordinance Amendment

4. Introduce the Ordinance Amendment
Findings

1. The proposed amendment meets the letter and intent of the general plan goals and policies

2. The proposed amendment is consistent with the General Plan and any applicable specific plan as provided by GC Section 65860

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

4. The proposed amendment is internally consistent with other provisions of the zoning code
Miscellaneous Code Amendments
15

Questions?
16

7 CITY COUNCIL STAFF REPORT
MEETING DATE: January 15, 2025
PREPARED BY:

Matt Mahood, Economic Development Director
APPROVED BY: City Manager
DOWNTOWN MORGAN HILL IMPROVEMENT DISTRICT 2024 ANNUAL
REPORT

RECOMMENDATION(S)
Accept and file the Downtown Morgan Hill Improvement District Annual Report.

COUNCIL PRIORITIES, GOALS & STRATEGIES
City Council Ongoing Priorities
Maintaining and Enhancing Infrastructure
Preserving and Cultivating Public Trust
2024-2025 Strategic Priorities
Fiscal Sustainability
Economic Development and Tourism
Guiding Documents
Bikeways, Trails, and Recreation Master Plan
Downtown Strategic Plan
Economic Blueprint
Morgan Hill 2035 General Plan
REPORT NARRATIVE:

POLICY CONSIDERATIONS:

REPORT NARRATIVE:

The Purpose of this staff report is to present the Morgan Hill Property and Business Improvement District (MHPBID) Annual Report (Attachment 1) for acceptance by the City Council pursuant to Streets and Highways Code §36650.

Background:

On November 16, 2022, the City Council approved the formation of the Morgan Hill Property and Business Improvement District (MHPBID) to levy and collect a property assessment from commercial, government, or nonprofit parcels in Downtown. The MHPBID is designed to benefit the properties in the downtown that are bounded by

7 Main Avenue to the south, Dunne Avenue to the north, Butterfield Boulevard to the west and Del Monte Avenue to the east. The MHPBID funds improvements and activities related to clean and safe programs, capital improvements, marketing, special events, and related management and administration services designed to increase foot traffic, beautification, and vibrancy of the District.

The assessment is based on a combination of parcel type, parcel square footage, and in some cases, linear frontage. Commercial and government parcels are assessed at $0.10 per square foot and non-profit parcels are assessed at $0.04 per square foot.

Commercial parcels fronting Monterey Road, East 3rd Street and Depot Street have a $5.00 per linear foot assessment, while non-profit parcels have a $2.00 per linear foot assessment.

The Streets and Highways Code §36650 requires the MHPBID to provide the City Council with an Annual Report that addresses the following:
• Any proposed changes in the boundaries of the improvement district or any benefit zones or classification of businesses within the district. • The improvements, maintenance, and activities provided for that fiscal year. • An estimate of the cost of providing improvements, maintenance, and activities for that fiscal year.
• The method and basis of levying the assessment in sufficient detail to allow each business owner to estimate the amount of the assessment to be levied against their business for that fiscal year.
• The estimated amount of any surplus or deficit revenues to be carried over from a previous fiscal year.
• The estimated amount of any contributions to be made from sources other than assessments levied pursuant to this part.
• A statement confirming that all required annual federal and state filings to ensure corporate good standing and to maintain tax-exempt status are completed and up to date.
• A copy of the previous year’s accepted federal and state tax filings.

Management District Plan:

A Management District Plan (MDP) identifies the MHPBID’s boundaries, budget, services, and governance. Below is a summary of MHPBID’s Plan:
• Boundary: The MHPBID boundary includes parcels north of Dunne Avenue, east of Del Monte Avenue, south of Main Street, and west of Butterfield Boulevard. • Term: Five (5)-year assessment beginning January 1, 2024, through December 31, 2028.
• Budget: Annual budget estimated at $284,640. Increases are allowed up to 3% annually.
• Mission: The purpose of the MHPBID is to provide improvements, maintenance, and activities which constitute and convey a special benefit to assessed parcels. The MHPBID will provide Clean and Safe programs, Capital Improvements and Art Installations, Marketing and Special Events, and related Management and

7 Administration directly and only to the assessed parcels within its boundaries. • Governance: A non-profit corporation, Downtown Morgan Hill Improvement District (DMHID), serves as the “Owners' Association” charged with the management of funds and implementation of the MHPBID Management District Plan. An annual report is required to be provided to the City Council at the end of each year of operation. The owner’s association's first report shall be due after the first year of operation of the District (January 1, 2024-December 31, 2024).

Owners’ Association (DMHID Board of Directors):

The MHPBID is governed by the Downtown Morgan Hill Improvement District (DMHID) Board also known as the "Owner's Association." The Morgan Hill City Council provides oversight and approves the annual report. The DMHID corporation is composed of no less than five (5) and no more than nine (9) Directors. Three (3) Directors must be property owners or approved managers subject to the assessment, two (2) Directors must be City of Morgan Hill staff members representing Public Works and Economic Development, and up to four (4) Directors can be a combination of Downtown business owners, residents, and/or property owners or approved managers paying the assessment. Currently, the Economic Development Director and the Public Services Director serve on the DMHID Board on behalf of the City.

Annual Report
The 2024 DMHID Annual Report (Attachment 1) does not propose any changes to the boundaries, benefit zones, or classifications of businesses. Accomplishments in 2024 include the design and publication of a Downtown Business Brochure, lighting ten (10) trees on Depot St., sidewalk cleaning, expansion of the Sidewalk Saturdays Makers Market, and the creation and management of various events and marketing programs.

While the MHPBID did not begin collecting assessments until April 2024, a fund of $120,427 comprised of revenue rolled over from the previous property based improvement district ($107,984) and revenue generated through the Sidewalk Saturday Makers Market ($12,443) provided the organization with operating funds in 2023. In 2024, the MHPBID collected a total of $267,407 in assessments. Additional revenues were secured from marketing and events. A copy of the organization’s 2023 tax return (Attachment 2) and 2024 financial report (Attachment 3) have been attached for the City Council’s review. The MDP requires the generation of a minimum of $35,283 in nonassessment funds annually, which the MHPBID achieved in 2024.

Conclusion
The goal of the MHPBID is to ensure the Downtown provides a safe and inviting environment, attracting more businesses, shoppers, and visitors, which will result in increased property values. The DMHID will achieve these goals by providing clean and safe programs, capital improvements, art installations, marketing, special events, and related district management within the Downtown boundary.

COMMUNITY ENGAGEMENT:

Inform

7 Downtown property owners and businesses are contacted on a regular basis. The DMHID board of directors meets every month and conforms with Brown Act noticing requirements. These meetings are open to the public, and meeting records are kept at www.dmhid.org.

ALTERNATIVE ACTIONS:

No alternative action is recommended, as this is an annual report on activities which have already occurred.

PRIOR CITY COUNCIL AND COMMISSION ACTIONS:

On September 28, 2022, the City Council adopted a Resolution of Intent to form the PBID and authorized the City Manager to sign the ballot for all city-owned properties in support of the formation. On November 16, 2022, the City Council signed a resolution to form the Morgan Hill Property and Business Improvement District, approving the assessment formula and levying the assessments.

FISCAL AND RESOURCE IMPACT:

As provided by State Law, the MHPBID assessment will appear as a separate line item on annual property tax bills prepared by the County of Santa Clara (County). The Santa Clara County Assessor’s Office is responsible for collecting the assessment from the property owners and remitting it to the City on a bi-annual basis. The City forwards the assessments to the Owners' Association, known as the Downtown Morgan Hill Improvement District (DMHID), a nonprofit corporation managing the MHPBID funds in accordance with the MDP. The City gets paid a fee equal to two percent (2%) of the amount of assessment collected to cover its collection and administration costs. In 2024, the City collected the first assessment in the amount of $272,864 on behalf of the MHPBID. The City retained $5,457 for the administration fee. These revenues are separate from and in addition to the City’s standard citywide property tax collections.

The PBID funds are a combination of public and private funds managed by a non-profit board (DMHID).

CEQA (California Environmental Quality Act):

Not a Project
Pursuant to CEQA, organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment are not projects for purposes of environmental review.

ANNUAL
REPORT
2024

DOWNTOWN MORGAN

HILL IMPROVEMENT

DISTRICT
Prepared by:

JAN 01-DEC 31

MORGAN HILLPROPERTYAND

BUSINESSIMPROVEMENT DISTRICT

ANNUAL
REPORT
District Background
Downtown Morgan Hill Improvement District (DMHID)
This report serves as the Annual Report from the Downtown Morgan Hill Improvement District Board (DMHID), responsible for the Downtown District and Morgan Hill Property and Business Improvement District (MHPBID) to the Morgan Hill City Council.

Developed by a coalition of Downtown property owners, the Morgan Hill Property and Business Improvement District (MHPBID) is a benefit assessment district whose main goal is to provide improvements, maintenance, and activities which constitute and convey a special benefit to assessed parcels.

The MHPBID includes parcels north of Dunne, east of Del Monte, south of Main, and west of Butterfield. As required by state law, property owners have created this Management District Plan (Plan) to form the MHPBID. The Downtown MHPBID is managed by a 501c6 non-profit organization, the Downtown Morgan Hill Improvement District (DMHID), in agreement with the City and guided by a board of directors comprised of property owners, business owners, residents and city staff. The DMHID aligns services with the direct benefits to those who contribute, ensuring a vibrant future for Downtown Morgan Hill.

The Downtown Morgan Hill Improvement District (DMHID) is dedicated to enhancing the vibrancy and economic success of Downtown Morgan Hill. Funded by Downtown commercial property owners, non-profits and the City, their mission is to promote a safe, clean, and welcoming environment through targeted programming, beautification, and marketing. The DMHID will achieve these goals by providing clean and safe programs, capital improvements, art installations, marketing, special events, and related district management within the Downtown boundary. This private/public partnership will have the ability to leverage parcel owners’ investment with additional public investment to provide the financial resources necessary to develop and implement a focused strategy to support existing and future businesses and patrons in Downtown Morgan Hill.

1 ASSESSMENT

OVERVIEW
The boundaries of the Assessment District include approximately 15 blocks surrounding the Monterey Road commercial corridor. The Assessment District is generally bounded on the south of Main Avenue, on the west of Butterfield Boulevard, on the north of Dunne Avenue, and on the East by Del Monte Avenue, as shown on the map below.

District Boundary

2 92
58 Property Owners
Properties
3 Annual Budget
Clean & Safe
60%
Capital Improvements & Art Installations
15%
Marketing & Special Events
10%
Administration
10%
Collection Fee
2%
Contingency Reserve
3%
Parcel Type
Square Footage
Assessment Rate (sq.ft.)
Linear Frontage
Assessment Rate (ln.ft.)
Commercial/Government $0.10 $5.00
Non-profit $0.04 $2.00
Parcels located within the District that are categorized as commercial, government, or nonprofit are subject to the assessment. The assessment rate (cost to the parcel owner) is based on parcel type, parcel square footage, and in some cases, linear frontage. To determine a parcel’s assessment, the applicable square footage and linear frontage rates in the table below are applied to the parcels within the MHPBID. Frontage rates are applied to parcels fronting East 3rd St, after Monterey Rd. intersection, Monterey Rd., and Depot St. The initial annual assessment rates are shown below. Assessment rates may be subject to an increase of no more than three percent (3%) per year.

ASSESSMENT

OVERVIEW
Assessment Formula
$284,640

The assessment roll is a listing of the proposed assessment for the Fiscal Year 2023/2024 apportioned to each parcel, as shown on the last equalized roll of the Assessor of the County of Santa Clara. The assessment roll for Fiscal Year 2023/2024 has been attached as Appendix 1.

ASSESSMENT

OVERVIEW
Assessment Roll
4 As provided by State Law, the MHPBID assessment will appear as a separate line item on annual property tax bills prepared by the County of Santa Clara (County). The Santa Clara County Assessor’s Office is responsible for collecting the assessment from the property owner’s and remitting it to the City on a biannual basis. The County levies and collects the assessments in the same manner and at the same time as ordinary ad valorem property taxes. The City forwards the assessments to the Owners' Association, known as the Downtown Morgan Hill Improvement District (DMHID), a nonprofit corporation managing the MHPBID funds in accordance with the MDP, defined as “Plan” above.

Time and Manner of Collecting Assessments
If a property owner believes that an assessment has been calculated or applied in error, the owner may contact the Board to correct the property information used to calculate the assessment. For Fiscal Year 2023/2024, the DMHID did not receive any requested corrections from property owners.

Resolution Disputes

KEYFOCUS
AREAS
Capital Improvements and Art Installations
The Capital Improvements and Art Installation program may use a multifaceted approach to planning, design, and management of public spaces in the MHPBID.

Marketing and Special Events will create an image of the MHPBID as a single destination with a set of unique opportunities. Further, the marketing program will garner positive media coverage of the MHPBID and its services and to improve the overall image of the MHPBID.

Clean and Safe
Marketing and Special Events
The Clean & Safe program will make the MHPBID cleaner, more accessible, and more attractive to potential tenants and customers, and a safer place to do business through enhanced maintenance.
5 Service Plan
A service plan to provide special benefits to assessed properties was developed using several methods. A series of property owner meetings, a survey of property owners, and an analysis of current property conditions and needs were all conducted. The primary needs identified were: Clean and Safe programs, Capital Improvements and Art Installations, and Marketing and Special Events. The MHPBID can provide these services to the District and directly benefit the assessed parcels within its boundaries.

DMHID

BOARD OF DIRECTORS

DANMCCRANIE
Chairman

ERICWALLACE
Treasurer

MATTMAHOOD
Secretary

CHRIS GHIONE
Director

FRANK LEAL
Director

HONNIEMURPHY
Director

LARRY CARR
Director

ROSYBERGIN
Director

SAMCARLSON
Director
As of December 31, 2024, the DMHID Board Members were:

6 2024

PROGRAMACTIVITIES
The focus of the Morgan Hill Property Business Improvement District (MHPBID) is to maintain the Downtown District as a safe and inviting environment, attract more tenants and shoppers, increase property values, and stabilize occupancy.

Under the leadership of the elected members of the Association (the “Board”), the Association implements and funds various improvements, services, and activities that will benefit the nonresidential properties throughout the Assessment District. The Assessment District maintains a 3% operating reserve for unanticipated expenses and new programs or projects not listed below.

The improvements, services, and activities detailed below are collectively referred to as the Program Activities Plan. The City currently provides certain improvements, services, and activities throughout the Downtown area. The Program Activities Plan funded by assessment revenue is in addition to those services provided by the City. The Program Activities Plan may be amended in any year and is subject to the review and approval of the Board prior to City Council approval.

7 CLEAN &
SAFE
Annual Sidewalk Cleaning
Research and select a street cleaning
company.

Create a sidewalk cleaning map and
coordinate the schedule of work.

Notify Downtown businesses and
residents.

Completed Annually (2023 and 2024)
Lighting project phase #1:

Research and select a lighting company.

Select product that will wire elasticity
and long-term/low-maintenance
lifespan.

Illuminate (10) trees on Depot Street
around the Railroad Park
Completed October 2024
Lighting Project Phase #2:

Work with lighting company to match
the lighting materials and design of the
existing sidewalk tree lighting on
Monterey Rd.

Illuminate all trees in the center
median on Monterey Road from MainDunne.

Estimated completion early 2025

8 EVENTS
Back to School Block Party
Organized and managed a Back to
School Block Party Downtown Morgan
Hill on Thursday, August 22nd
Collaborated with 27 businesses to
stay open after hours, and offer back
to school specials and activities
Approximate attendance- 100 families
Boots and Brews Week
Collaborated with several Downtown
businesses to create a list of 10
Downtown activities and promotions in
advance of the 2024 Boots and Brews
concert
Late-Night Shop Hop
Organized 2 Late-Night Shop Hops on
Thursday evenings from 4pm-7pm
Collaborated with 4 Downtown
businesses on February 17 and 7
Downtown businesses on April 18 to
offer discounts and activities for
patrons

9 EVENTS
Oktoberfest
Hosted a free Oktoberfest event on
Saturday, October 19 from 1p-5p
Partnered with Visit Morgan Hill and 7
local restaurants and retailers to offer
beer, food, contests, and various
Oktoberfest Activities
Two participating businesses reported
they had their highest Saturday
revenues to date
Approximate attendance- 500 people
Sidewalk Saturdays
Organized and managed a local Makers
Market on the 2nd Saturday of each
Month during the months of AprilDecember, 2024
Coordinated an average of 40 vendors
per event
Included a partial closure of 3rd street

10 MARKETING
498

53.9%
Followers
Followers between
the ages of 35-54
Downtown Business Brochure
Designed a 46-page, glossy, full color
Downtown Business Directory
Coordinated professional
photography and collected content
for 41 Downtown businesses
Distributed 2,150 brochures to date
of total 5,000 brochures printed
Destination Downtown MH
Secured social media address:

Destination Downtown MH
Created Instagram and Facebook
pages
Connected with local influencers and
social media group accounts to
cross-promote events
61 Views Posts

4.6K

83.7%
Followers that are
women

11 Launched logo, branding, and mission statement.

Developed and implemented an Annual Budget.

Identified improvements, services, and activities to be included in the 2024 Program Activities Plan.

Prepared and filed required tax, insurance, and administrative filings.

Created and maintained the DMHID.org website.

Developed and maintained a Downtown Business Directory landing page.

Launched and maintained social media sites identified as Destination Downtown MH.

Created digital advertising, email, and marketing campaigns.

Conducted Downtown business and property owner meetings and surveys.

Attended and gave an activity report during partner organization meetings.

Facilitated a Downtown Retail Subcommittee.

Contracted a Business Engagement & Events Manager.

GENERAL

ADMINISTRATION

12 FINANCIALS
$29,675
$267,406
$37,760
Administration
Assessment
Collection
Non-Assessment
Revenue
2024 EXPENSES
2024 REVENUE
13 The organization’s 2023 financial report has been attached as Appendix 2 and the 2024 financial report has been attached as Appendix 3.

Clean & Safe $138,705
$51,284
Marketing and
Special Events
$306,652
$232,565
Other Revenue $1,486
PBID Startup
Fund Repayment $12,900
2024 NET REVENUE $74,087

FINANCIALS
DMHID/ MHPBID 2023 Federal Return of Organization Exempt from Income Tax was electronically filed and accepted with the Internal Revenue Service.

No tax is payable with the filing of this return.

DMHID’s 2023 California Exempt Organization Annual Information Return was also electronically filed.

No audit conducted for 2023.

Taxes Prepared Without Audit
Other Contributions
No other financial contributions to the DMHID were made.

Proposed Changes
There are no proposed changes to the boundaries of the improvement district or to any of the benefit zones or classification of business within the district.

The Morgan Hill Property and Business Improvement District (MHPBID) is a benefit assessment district whose main goal is to provide improvements, maintenance, and activities which constitute and convey a special benefit to assessed parcels. This approach has been used successfully in other cities throughout the country to provide special benefits to property owners, namely increased sales, attraction of new tenants, increased occupancies, and specifically increased property values. The goal in years to come is to meet and exceed the criteria of each of the target areas outlined in the MDP, generate revenue and sales tax, and grow Downtown Morgan Hill as a vibrant, beautiful, and welcoming destination.

Conclusion

14 Visits to the Downtown District
2019 2020 2021 2022 2023 2024

0.0 0.5

1.0 1.5

2.0 2.5

3.0 2024 Visitors Average Length
of Stay
Average Number
of Visits per Visitor
474K* 126MINUTES* 5.15*

DOWNTOWN

METRICS
15 (Millions of Visits)
*Data collected from Placer.ai platform

Q1+Q2, 2024 Q3+Q4, 2024
2019 2020 2021 2022 2023 2024
0 100
200
300
400
500
600
2023 Sales Tax
$540K*

DOWNTOWN

METRICS
16 ($ Thousands)
2023 vs 2019
+41% *
*Data collected from HdL Company
Q3+Q4
not available

2024 Property Value Vacancies
$367.3M* 4
Downtown District Property Values
2019 2020 2021 2022 2023 2024
0 100
200
300
400

DOWNTOWN

METRICS
17 ($ Millions)
*Data collected from Santa Clara County Assessor’s Office

CONTACT
US
Phone/
Email/
Website/
408-310-4623
[email protected]
dmhid.org
#destinationdowntownmh

72615003 1,141
$
114.10
72614008 3,200
$
520.00
76708011 5,434
$
543.40
76708003 5,600
$
560.00
76707010 5,000
$
700.00
76707011 5,000
$
700.00
76707042 7,405
$
740.50
72614007 5,600
$
760.00
72614041 8,527
$
1,252.70
76707050 10,000
$
1,400.00
72614042 13,600
$
1,760.00
72615004 23,031
$
2,303.10
76707065 25,353
$
2,535.30
72615070 40,306
$
4,030.60
72613055 42,852
$
5,060.20
72613047 40,946
$
6,104.60
72614076 46,995
$
7,119.50
72615072 77,536
$
7,753.60
76708008 94,089
$
9,408.90
72604001 98,058
$
9,805.80
72612005 105,826
$
10,582.60
72615071 264,409
$
26,440.90
72613052 300,059
$
34,795.90
$ 134,991.70
72612006 354,578
$
35,457.80
72614074 47,600
$
5,560.00
72614028 11,530
$
1,553.00
76707027 4,995
$
699.50
APPENDIX 1
Fiscal Year 2023/2024 Assessment Roll
Property APN Lot Square Feet Assessment

76707028 5,000
$
700.00
76707029 5,002
$
700.20
76707041 21,700
$
2,170.00
$ 11,382.70
72613058 71,702
$
9,800.20
72604015 54,450 $ 5,445.00
72613049 21,780
$
6,488.00
72614075 31,609 $ 5,435.90
76708046 33,000
$
4,300.00
72604008 34,816 $ 3,481.60
72614051 13,509
$
1,350.90
72614050 13,872
$
1,817.20
76707059 30,494
$
3,049.40
76707031 5,000
$
700.00
76707030 5,000
$
700.00
76707066 12,117
$
1,611.70
$
3,011.70
72614015 5,600
$
560.00
72614013 5,662
$
766.20
72614014 11,200
$
1,520.00
$
2,846.20
76707064 21,200 $ 2,495.00
76707014 12,400
$
1,240.00
$ 2,444.50
76708034 16,932
$
2,383.20
72613021 16,600 $ 2,260.00
72613037 11,200
$
1,520.00
$ 1,520.00
APPENDIX 1
Fiscal Year 2023/2024 Assessment Roll
Property APN Lot Square Feet Assessment

72613056 7,875  $
1,677.50
72613057 10,525  $      1,417.50
76708004 10,000  $
1,400.00
72614052 13,851  $      1,385.10
76708033 9,680  $
1,368.00
72614047 12,800  $      1,280.00
76707004 12,400  $
1,240.00
72613050 11,605  $      1,160.50
76708007 11,200  $
1,120.00
76707007 11,200  $      1,120.00
76708018 11,200  $
1,120.00
76707006 11,200  $      1,120.00
72614020 2,400  $
240.00
72614019 5,840  $
879.00
$
1,119.00
72614009 3,800  $      1,055.00
72613031 8,276  $
1,027.60
76708006 6,000  $      1,000.00
72613060 6,880  $
988.00
72613041 6,000  $          975.00
72614048 6,720  $
912.00
76707055 9,000  $          900.00
72613022 22,400  $
896.00
76708014 7,281  $
371.24
76708015 6,797  $
431.88
$          803.12
76707057 5,405  $
775.50
72613018 5,600  $          760.00
72614012 5,600  $
760.00
72614011 5,600  $          760.00
76708045 5,000  $
700.00
APPENDIX 1
Fiscal Year 2023/2024 Assessment Roll
Property APN Lot Square Feet Assessment

76707047 5,000 $ 700.00
72614027 4,737
$
678.70
72613059 6,776 $ 677.60
72614010 4,356
$
660.60
72613017 5,600 $ 660.00
76707016 5,600
$
560.00
76707017 5,600 $ 560.00
72654014 2,770
$
277.00
72654031 1,810 $ 181.00
72654033 585
$

58.50 72654032 585 $ 58.50
$ 277,034.84
APPENDIX 1
Fiscal Year 2023/2024 Assessment Roll
Property APN Lot Square Feet Assessment

APPENDIX 2
Calendar Year 2023 Financial Report

APPENDIX 3
Calendar Year 2024 Financial Report

Accrual Basis Thursday, January 9, 2025 06:06 PM GMT-8 1/2 Downtown Morgan Hill Improvement District
Statement of Activity
January - December 2024
TOTAL
JAN - DEC 2024 JAN - DEC 2023 (PY) CHANGE
Revenue
Event Revenue
Downtown Brochure Revenue 7,650.00 7,650.00
Holiday Market Revenue 950.00 -950.00
Makers Market Car Show 600.00 -600.00
Oktoberfest Revenue 1,250.00 1,250.00
Sidewalk Saturdays Revenue 28,860.00 14,101.00 14,759.00 Total Event Revenue 37,760.00 15,651.00 22,109.00
Property Assessments 267,406.85 107,963.44 159,443.41
Total Revenue $305,166.85 $123,614.44 $181,552.41
GROSS PROFIT $305,166.85 $123,614.44 $181,552.41
Expenditures
Administration Expenses (10%)
Bank charges 30.00 15.00 15.00
Bookkeeping 412.50 -412.50
Insurance 2,039.00 2,099.00 -60.00
Meals 57.29 57.29
Office Supplies & Software 964.15 297.50 666.65
Service Contracts/Annual Report 1,317.50 1,317.50
Staff 21,000.00 21,000.00
Tax Preparation & Filing 800.00 800.00
Tax Roll Preparation & Submission 3,120.00 3,120.00
Website/Domain 347.88 347.88
Total Administration Expenses (10%) 29,675.82 2,824.00 26,851.82 Clean & Safe Programs (60%)
Sidewalk Power Washing 22,553.52 18,794.60 3,758.92
Tree Lighting 116,152.11 116,152.11
Total Clean & Safe Programs (60%) 138,705.63 18,794.60 119,911.03 Marketing & Special Events (10%)
Downtown Block Party Expenses 288.89 288.89
Downtown Business Brochure Expenses 26,484.93 26,484.93 Holiday Market Expenses 37.05 -37.05
Makers Market Car Show Expense 22.31 -22.31
Oktoberfest Expenses 24.69 24.69
Sidewalk Saturdays Expenses 24,485.99 5,212.87 19,273.12 Total Marketing & Special Events (10%) 51,284.50 5,272.23 46,012.27 PBID Start-up Funds Repayment 12,900.00 12,900.00
Total Expenditures $232,565.95 $26,890.83 $205,675.12
NET OPERATING REVENUE $72,600.90 $96,723.61 $ -24,122.71 Other Revenue
Interest Income 1,486.10 508.45 977.65
Total Other Revenue $1,486.10 $508.45 $977.65
No assurance is provided on these financial statements

Accrual Basis Thursday, January 9, 2025 06:06 PM GMT-8 2/2 TOTAL
JAN - DEC 2024 JAN - DEC 2023 (PY) CHANGE
NET OTHER REVENUE $1,486.10 $508.45 $977.65
NET REVENUE $74,087.00 $97,232.06 $ -23,145.06
No assurance is provided on these financial statements

Accrual Basis Thursday, January 9, 2025 06:06 PM GMT-8 1/1 Downtown Morgan Hill Improvement District
Statement of Financial Position
As of December 31, 2024
TOTAL
AS OF DEC 31, 2024 AS OF DEC 31, 2023 (PY) CHANGE
ASSETS
Current Assets
Bank Accounts
Heritage CKNG (*8837) - 1 17,239.76 5,764.89 11,474.87
Heritage MMKT (*8845) - 1 154,079.30 91,467.17 62,612.13 Total Bank Accounts $171,319.06 $97,232.06 $74,087.00
Total Current Assets $171,319.06 $97,232.06 $74,087.00
TOTAL ASSETS $171,319.06 $97,232.06 $74,087.00

LIABILITIES AND EQUITY
Liabilities
Total Liabilities $0.00
Equity
Net Assets 97,232.06 97,232.06
Net Revenue 74,087.00 97,232.06 -23,145.06
Total Equity $171,319.06 $97,232.06 $74,087.00
TOTAL LIABILITIES AND EQUITY $171,319.06 $97,232.06 $74,087.00 No assurance is provided on these financial statements

8 CITY COUNCIL STAFF REPORT
MEETING DATE: January 15, 2025
PREPARED BY:

Kim Mancera, Deputy City Clerk
APPROVED BY: City Manager

SELECT AND APPOINT CITY COUNCIL MAYOR PRO TEMPORE

RECOMMENDATION(S)

1. Open floor to nomination(s) for Mayor Pro Tempore; and

2. Select a Council Member to serve as Mayor Pro Tempore per City Council Policy 99-01.

COUNCIL PRIORITIES, GOALS & STRATEGIES
City Council Ongoing Priorities
Enhancing Public Safety
Protecting the Environment and Preserving Open Space and Agricultural Land Maintaining and Enhancing Infrastructure
Supporting our Youth, Seniors, and Entire Community
Fostering a Positive Organizational Culture
Preserving and Cultivating Public Trust
Preserving our Community History
Enhancing Diversity and Inclusiveness
Advocating for Local, Regional, and State Legislative Initiatives 2024-2025 Strategic Priorities
Fiscal Sustainability
Affordable Housing and Homelessness
Community Engagement
Economic Development and Tourism
Healthy Community
Guiding Documents
Bikeways, Trails, and Recreation Master Plan
Climate Action Plan
Communications, Outreach, and Engagement Plan
Economic Blueprint
Fire Services Standards of Coverage
GIS Strategic Plan
Morgan Hill 2035 General Plan
Public Safety Master Plan
Storm Drain Master Plan

8 Vision Zero
Water System Master Plan
Wastewater System Master Plan
REPORT NARRATIVE:

City Council Policy CP-99-01 sets forth the criteria for the selection of a Mayor Pro Tempore annually for a one-year term. The adopted policy is intended to provide every Council Member with the opportunity to serve as Mayor Pro Tempore. Nomination for the Mayor Pro Tempore seat is generally based on: (1) the length of time that an individual has served on the City Council and (2) whether or not the nominee has previously had the opportunity to serve as Mayor Pro Tempore. However, these factors are not binding, and every member is eligible to serve as Mayor Pro Tempore. The Mayor or any member of the City Council may nominate a member to serve as Mayor Pro Tempore. A copy of the Council Policy CP-99-01 is attached, and the recent Mayor Pro Tempore history is as follows:

CITY COUNCIL MAYOR PRO TEMPORE RECENT HISTORY
FROM: TO:

Council Member Carr December 14, 2016 January 17, 2018
Council Member
Constantine
January 17, 2018 December 19, 2018
Council Member Spring December 19, 2018 December 4, 2019 Council Member Martínez
Beltrán
December 4, 2019 December 16, 2020
Council Member McKay December 16, 2020 November 17, 2021 Council Member Borgioli November 17, 2021 January 11, 2023 Council Member Librers January 11, 2023 January 15, 2025 COMMUNITY ENGAGEMENT:

Inform
This report serves to inform the community of the process for selection of the Mayor Pro Tempore.

ALTERNATIVE ACTIONS:

Not Applicable
PRIOR CITY COUNCIL AND COMMISSION ACTIONS:

The Council selects a Council Member to serve as the Mayor Pro Tempore annually.

FISCAL AND RESOURCE IMPACT:

8 There are no fiscal impacts. Selection of Mayor Pro Tempore is an activity of the City Council’s annual workplan.

CEQA (California Environmental Quality Act):

This action is not a project. Selection of a Mayor Pro Tempore is an administrative governmental activity that will not result in direct or indirect physical changes in the environment.