Morgan Hill City Council
March 4, 2026

Illustrative elevations to be replaced
Figure 15

5.0 LAND USES
Table 1, PD Master Plan Allowed and Conditional Uses, presents uses allowed by the PD Master Plan. The table identifies the use as a permitted (P) or conditionally permitted (C) land use. Uses in bold are new uses added to the permitted uses in the CS zoning district as part of this PD Master Plan. Some uses permitted in the CS district were eliminated from the list. The MU-F General Plan designation permits the property to be developed in a mixed use fashion allowing residential and hospital uses not currently allowed within the 2035 General Plan Commercial land use designation or the CS zoning district.

The conceptual Site Plan portrays five types of uses on the property; however, a revised site plan, or the future reuse or re-purposing of buildings after they are constructed and initially occupied, could change or add to those uses. Table 1, PD Master Plan Allowed and Conditional Uses, provides a comprehensive list of allowed and conditional land uses that could be approved within the PD Master Plan.

Table 1-1 Parcel C PD Master Plan Allowed and Conditional Uses Use Planned Development (PD)
Hospitals P
Medical Offices and Clinics P
Mixed Use Residential P
Table 1-2 Parcels A, B, and D PD Master Plan Allowed and Conditional Uses* Use Planned Development (PD)
Banks and Financial InstitutionsAssisted Living Facilities CP Banks and Financial Institutions P
Business Support Services P
College and Trade Schools C
Convenience Market C
Commercial Recreation, Indoor <15,000 square feet P
Community Assembly C
Cultural Institutions P

D
ayCareCenter
CP
1 Drive-Through and Drive-inFacilitiesC

Use Planned Development (PD)
Emergency Shelters C
Farmers Markets CP
1 General Retail P
Hospitals P
Hotel and Motels CP
1P
Instructional Services P
Medical Offices and Clinics P
Parking Lots and Structures P
Parks and Recreational Facilities P
Personal Services P
Professional Offices P
Residential Care Facilities CCP
Residential Care Facilities, Small CCP
Restaurant- Fast Food, Sit Down CP
1P
School, Public and Private C
Skilled Nursing Facility CP
Social Services C
Accessory Uses (per Section 18.44)
Temporary Uses (per Section 18.92.150)
A. At buildout, at least 75% of the total developed gross building square footage on the Medical Campus shall be medical uses.

Non-medical uses shall not exceed 25%.A minimum of 75% of the total developed gross building square footage within the Medical Campus shall consist of medical uses. Non-medical uses shall not exceed 25% of the total developed gross building square footage.

A.

Medical uses include facilities providing non-residential diagnosis, treatment, surgery, imaging, or outpatient clinical services. This includes hospitals, medical office buildings, outpatient facilities, clinics, diagnostic and imaging centers, and similar uses consistent with Morgan Hill Municipal Code Title 18 and this Master Plan. Medical uses for purposes of this Planned Development Master Plan are limited to facilities providing diagnosis, treatment, surgery, imaging, or outpatient clinical services on a non-residential basis, including hospital facilities, medical office buildings, outpatient facilities, clinics, diagnostic and imaging centers, and similar uses consistent with Morgan Hill Municipal Code Title 18.

Skilled nursing facilities and also long-term supportive healthcare residential uses such as nursing homes, assisted living facilities, and residential care facilities shall not be counted toward the minimum required medical uses square footage.

B.

C. The following are non-medical uses for purposes of this Master Plan and count toward the 25% cap: assisted living facilities, skilled nursing facilities, residential care facilities, nursing homes, and other long-term residential care or supportive healthcare residential uses, plus any other uses allowed by this PD that are not medical uses as defined above.

D. Non-medical uses shall not be counted toward the 75% minimum medical square footage requirement. 1 – Day care centers, farmers markets, hotel and motels, and restaurants are allowed as permitted uses only when clearly incidental to, and supportive of, the primary medicalserving campus and shall not function as stand-alone primary site uses

The City shall not approve or issue building permits for any non-medical uses until building permits have been issued for at least 50,000 square feet of medical uses.The City shall not approve or issue building permits for any non-medical uses until building permits have been issued for a minimum of 50,000 square feet of medical uses or the non-medical uses are being processed concurrently with the medical uses and conform with the square-footage requirements for medical.

E.

A. Non-medical uses may be approved concurrently only if the same phase includes at least 50,000 square feet of medical uses and the overall project will remain compliant with the 75% minimum medical and 25% maximum non-medical requirements at buildout and during all phases of the project.Non-medical uses may be approved concurrently with medical uses provided the development phase includes at least 50,000 square feet of medical uses and the project will remain in compliance with the 75% minimum medical uses and 25% maximum non-medical uses buildout.

F.
•G. Any non-medical use must be clearly subordinate and incidental to the medical-serving campus and shall not function as the primary site use.Non-medical uses must be in conjunction with a Hospital or other medical uses.

6.0 DEVELOPMENT STANDARDS
Development standards such as heights, setbacks, and building coverage within the planned development combining district are established in the PD Master Plan. Those standards may deviate from development standards in the Service Commercial base zoning district except that the maximum permitted floor area ratio and residential density may not exceed maximums established in the 2035 General Plan for the commercial land use designation. The floor area ratio for the Commercial land use designation in the 2035 General Plan is

0.6. The general plan amendment to Mixed Use Flex changes the floor area ratio to 0.5, which is reflected in the PD Master Plan. Standards in bold have been revised from those of the CS zoning district as part of this PD Master Plan. Table 2, PD Master Plan Development Standards, presents the development standards.

Table 2 PD Master Plan Development Standards
Development Aspect Parameter
Minimum Lot Size 10,000 square feet
Minimum Lot Dimensions 100-foot width; 100-foot depth
Maximum building coverage 50%60%
Minimum setbacks
(front, rear, side, street) [1]
25, 0, 0, 15 feet (respectively)
Maximum height
(exceptions 18.56.020)
Residential/Office – 3 stories or 35 feet
Hospital Medical – 4 stories or 55 565 feet
Medical Parking Structure – 6 stories or 65
feet
Floor Area Ratio 0.50.6 0.66 Medical w/ Mixed Use Flex (MU-F) Signs Per Section 18.88
Lighting Per Section 18.72.060.G
Landscaping Per Section 18.64
On-Site Parking Per Section 18.72 [2]
Retail 1 space per 250 square feet of net floor area
Restaurant (sit down) 1 space per 100 square feet of net floor area Medical Office 1 space per 200 250 square feet of net floor area Residential (multi-family) 1 bedroom unit – 1 covered
2 bedroomunit – 1 covered and 1 uncovered per unit
Guest Parking 1 per 3 units (shared with Medical Office use) Electrical Vehicle Parking 1 per 25 to 49 automobile spaces, 2 per 50 to 100 automobile spaces, plus 1 per 50 ratio over 100 automobile spaces
Non-Residential Bicycle Parking Short term: 10% of required automobile spaces; long term (enclosed): 5% of required automobilespaces
Residential Bicycle Parking 10% of automobile spaces; long-term (enclosed), 1 per 5 units NOTE:
[1] Outdoor seating, courtyards, and other publicly-accessible spaces may occupy the frontsetback. Residential porches and similar entry features may project ten feet into the front setback.
[2] Unless otherwise modifiedimodified in this table.
[2][3] Minimum parking stall dimensions within a parking deck/parking structure: 9-foot width; 18-foot depth when the drive aisle is at least 25-feet wide

PD Master Plan Development Standards for Single Family Residential Development Aspect Parameter
Minimum Lot Size (Single Family Residential) 1,000 square feet Minimum Lot Dimensions 22-foot width; 45-foot depth
Floor Area Ratio 0.5 w/ Mixed Use Flex (MU-F)
Minimum Setbacks
(front, rear, interior side, street side)
5 or N/A, 5 or N/A, 0 [1] or 3, 5 feet (respectively)
Maximum Height 3 stories or 35 feet [2]
Signs Per Section 18.88
Lighting Per Section 18.72.060.G
Landscaping Per Section 18.64
Open Space Per Section 18.40-4 based on lot size
Parking
Residential (Single Family)
Guest Parking
Per Section 18.72 [3]
2 spaces - 1 covered space for each housing unit
1 per housing unit [4] (shared with Medical Office use) NOTE:
[1] A setback ofzero feet is acceptable on one side yard; provided, thatthe sum of both side yard setbacksis atleast eightfeet [2] Roof elements with minimum 5:12 roof pitch may exceed the building plate height by up to eight feet. [3] Unless otherwise modified in this table.
[4] These guestspaces may include a combination of driveway parking, alley parking, on-street parking in front ofthe residence, and designated guest parking spaces.

7.0 CONSISTENCY WITH 2035 GENERAL PLAN

7.1 General Plan Land Use Designations
2035 General Plan- Commercial. The Commercial designation is primarily located along arterial roadways west of US Highway 101 and along the eastern freeway frontage. This designation is intended to allow a wide range of retail businesses, administrative and executive office uses, and professional services, either in standalone buildings or as part of shopping centers. The largest concentrations of this designation are found along Monterey Road and at the freeway interchanges, where retail stores are emphasized. The Service Commercial overlay along Monterey Road, north of Wright Avenue, allows auto-related uses, except for sales. The Commercial designation allows a maximum FAR of 0.6 and Mixed Use Flex designation allows a maximum FAR of 0.5.

The General Plan goals and policies for Commercial with a Planned Development Combining District overlay are described below. In general, the 2035 General Plan encourages neighborhood-scale shopping near residential neighborhoods to foster walking and biking and to avoid car trips. 2035 General Plan - 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 a Residential or Mixed-Use project 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.

Because the PD Master Plan includes a mix of uses on the property including retail, medical office, medical hospital, multi-family apartments5, and a park element as part of the Planned Development Combining District, Mixed Use in addition to Commercial 2035 General Plan goals and policies have been analyzed. 5 All references to apartments instead refer to townhomes and single-family detached dwellings as revised by the new site plan revised on October 6, 2020.

7.2 General Plan Goals and Policies
Applicable 2035 General Plan Goals, Policies, and Implementation Measures are presented in Table 3 through Table 9 below, along with an assessment of PD Master Plan consistency.

City and Neighborhood Form
Table 3 General Plan 2035 - City and Neighborhood Form Goals and Policies General Plan City andNeighborhood Form
GoalsandPolicies
Consistency Analysis
Residential Neighborhoods-GOAL CNF-10 A
variety of housing types and densities available to all residents.

Consistent: The PD Master Plan allows for a variety of housing types.

The conceptual Site Plan shows multifamily residential which will provide the community with new housing types including one and two bedroom apartments.
6 Policy CNF-10.3 Adequate Supply of Multi-Family Housing.

Provide for an adequate supply of multi-family housing, located convenient to shopping, services, and transportation routes.

The PD Master Plan will assist the Cityinachievingan adequate housing supplyasthePDMasterPlanallowsfor150residentialunits.The conceptual Site Plan provides foramix of residential, commercial, and medical uses that will allow for the placement of housing convenient to the shops, services, and offices, and adjacent to major transportation routes.

Policy CNF-10.6 Density Near Infrastructure. Encourage
higher residential densities at locations where convenient access and adequate infrastructure is readily available.

Consistent: Theproperty is adjacentto JuanHernandez Road and Barrett Avenue in an area with existing utilities. A survey was completed byWhitson Engineers that determined there was adequate infrastructure available around the project site to support the uses identified in the PD Master Plan.

New Subdivisions-GOAL CNF-11 High quality,
aesthetically pleasing, livable, sustainable, well-planned residential neighborhoods, well-connected to neighborhood services.

Consistent: The PD Master Plan’s conceptual Site Plan provides a well-planned, aesthetically pleasing, livable, sustainable and wellconnected residential neighborhood with integrated commercial/retail and medical offices.
6 All references to apartments instead refer to townhomes and single-family detached dwellings as revised by the new site plan revised on October 6, 2020.

Policy CNF-11.5 Outside Connections. Require new subdivisions to provide multiple connections to the surrounding community.

Methods to achieve this may include:
▪ Providing multiple points of entry into the project for motorists, bicyclists and pedestrians.
▪ Extending the existing street pattern at the edges of the subdivision into the site. Extended streets should match the typeand scaleofstreetstowhich they connect.
▪ Installing landscaping and street improvements at the edge of subdivisions that appear as common amenities
shared with adjacent neighborhoods.

Consistent: As shown in the PD Master Plan conceptual Site Plan, development within the property will be designed to be compatible with the surrounding neighborhood. Multiple points of pedestrian ingress/egressareprovidedalongBarrettAvenueand JuanHernandez Drive, with connections to existing sidewalks. Two points of ingress/ egressforvehiclesandbicyclesare providedalongBarrettAvenue,and two along Juan Hernandez Drive. A private drive is provided along the southern portion of the property that could provide connectively tothe adjacent vacant parcelto the south when itis developed in the future.

The conceptual Site Plan provides for connectivitytothisadjacent vacant parcel to facilitate connectivity in anticipation of its eventual development.Residentialandopenspace/parkuseswillbe adjacentto existing residential uses and

General Plan City andNeighborhood Form
GoalsandPolicies
Consistency Analysis
▪ Minimizing the use of gates, fences, and wallsthat
separate the subdivision from the surrounding
community.
▪ Planningfor future connectionstoadjacent
undeveloped property.

Barrett Elementary School, and connectivity within the property will be provided via several pedestrian paths. The open space area abuts Barrett Avenue, which is adjacentto Barrett Elementary School, and will be made accessible to the school. The northern most open space/park area will be dedicated by easement for public use, including use by the Barrett Elementary School, to be used as a common amenity.

Policy CNF-11.10 Open Space. Require new subdivisions to feature integrated common open spaces, parks, and community facilities that serve as social and design focal points. Open spaces should be a close walking distance from all residents and should be large enough tobeusefulforresidents.

The conceptual Site Plan includes approximately three acres of passive park/open space. Approximately 1.7acres of the open space will be available to the elementary school for its use and benefit. The remainderofopenspace, includingwalking trails, servestheresidential, commercial and office components of the plan, as well as neighboring residents. Theopen space and park areas arewithin walking distanceof all of these usesand connectedbypedestrianpaths.

Policy CNF-12.1 Neighborhood Center Design. Allow
neighborhood centers within future residentialneighborhoods.

Neighborhood centers are envisioned as nodes or focal points that offer neighborhood-serving services and amenities within a reasonablewalkingdistancefromadjoining residential areas. These centersshouldbedesignedtoincreasethe accessibilityofgoodsand services within existing residential neighborhoods, particularly for the benefit ofsenior citizens and thosewith limited mobility, and to offer opportunities forsocialization.

Consistent: The PD Master Plan includes neighborhood serving uses and amenities including retail, restaurant, and medical office/ hospitalusesto servetheproposed and existingneighborhood.These uses include public gathering areasandpedestrian access.These services will be within walking distance to the existing and proposed neighborhoods and will increase the accessibility of services for the existing neighborhood, particularly for the benefit ofsenior citizens by providingclose walkable medicaloffices.

Policy CNF-12.4 Neighborhood Center Requirements. Require future neighborhood centers to meet the following requirements:
▪ The design of neighborhood center should provide a
sense of place,promote casual interaction, and
enhance overall well-being.
▪ The design of neighborhood centershould
complement the residential character ofits
immediatesurroundings, including site design,
access,buildingstyle,building materials,signage,
lighting, and landscaping.

Consistent: ThePDMasterPlan conceptualSitePlanincludes
pedestrianpathwaysthat connecttheopen space,residential,retail, and medical components of the plan. The PD Master Plan includes a small retail center and open space/park areas that,along with the pedestrian access ways, will provide gathering areas and a sense of place, thereby promoting casual interaction and overall wellbeing. The project will be required to undergo design review with the City ofMorganHillto ensurethatthedesign complements theresidential character of the adjacent neighborhood.

General Plan City andNeighborhood Form
GoalsandPolicies
Consistency Analysis
Mixed Use Flex-GOAL CNF-13 Mixed use flex
developmentsthatinclude a variety of uses and formsto foster a dynamic urban environment.

PolicyCNF-13.1Mixed Use Flex Development. Encourage a
mix of uses, either vertically or horizontally, to allow residents and employees tomeet daily needs without the use of the private automobile.

Consistent: The PD Master Plan allows for a variety of uses including retail,residential, and medical uses. The combination of uses withinthepropertyprovidesforwalkability to servicesforresidents and employees.

Commercial and Office- GOAL CNF-15 Sufficient,
sustainable, and concentrated commercial and office uses.

Policy CNF-15.3 Retail Uses at Major Intersections. Encourage retailsales use at major intersections as the focus of clustered commercial development.

Consistent: The PD Master Plan providesfor clustered commercial, medical, and retail uses near a major intersection at the south side of Morgan Hill.

Policy CNF-15.5 Office Development. Encourage new regional and local-serving office development at appropriate locations.

Consistent: The PD Master Plan allowsfor medical offices/ hospital usesto create a campus of medical officesto serve the community and
region.

Commercial / Industrial-GOAL CNF-18 Integrated jobgenerating centers that offer workers and businesses a range of servicestomeet their daily needs.

Policy CNF-18.1 Vibrant Job Centers. Encourage land with a Commercial/Industrial designation to develop with job-generating uses with amenitiesthatsupport workers and businesses,such as restaurants, lodging, fitness centers, and hair salons.

Consistent: The PD Master Plan allows for concentrated and integrated retail,medical officesand hospital uses that will provide jobsfortheCityand thesurroundingneighborhood. The medicaloffice/ hospital is expected to produce approximately 472jobs.

The PDMaster Planalso allowsfor amenitiessuchasrestaurants,and personalservices to serve the neighborhood and the surrounding community.

Housing
Table 4 General Plan 2035 - Housing Goals and Policies
General Plan Housing
Goals and Policies
Consistency Analysis
Goal HE-4 A range of housing types
for all age groups, served by transit,
recreational amenities, shopping, and
health and personal services, that allows
residents to age in place.

Consistent: The PD Master Plan allowsfor a range of housing typesincluding one and twobedroomunitsandaffordableunits.ThePDMasterPlanallowsforhousingconveniently co-located with servicesincluding medical office / hospital and retail uses. Residents of the neighborhood would live within walking distance of health and personalservicesthat would allow for them to age in place.

Policy HE-4u: Mix of Housing Near
Services. Encourageamixofhousing types
in each neighborhood located convenient
to shopping, services, recreation, and
transit routes.

The PD Master Plan allows for a range ofhousingtypesincludingone and two bedroom units and affordableunits. ThePDMaster Plan allows forhousing conveniently co-located with services including medical office / hospital, retail uses, open space/park uses, and Barrett Elementary School. The nearest Valley Transportation Authority bus route is located more than one mile from the property, but the applicant is open to the establishment of service at the property.

Economic Development
Table 5 General Plan 2035 - Economic Development Goals and Policies General Plan Economic Development
Goals and Policies Consistency Analysis
Policy ED-7.4 Compatible Uses in Retail Centers. Encourage the evolution of retail centers into mixed-use activity nodes by supporting integration of uses that provide necessary or useful services or amenities that will benefit nearby residential areas and commercial establishments. Such uses may include but shall not be limited to:
a. Health services and fitness facilities.
b. Childcare.
c. Housing, including affordable and senior housing.
d. Religious facilities.
e. Education/training facilities.
f. Parks/community facilities/public gathering places.

Consistent: The PD Master Plan provides
a mix of retail and medical uses convenient
to the proposed and existing adjacent
neighborhood. The medical and retail uses
will provide healthand retail services
and amenities to the existing and
proposed neighborhood.ThePDMaster
Plan also includes public plaza and gathering
locations.

GOAL ED-8 Office and industrial areas that provide high-quality work locations for existing and new businesses.

Policy ED-8.1 Office and Industrial Development. Support the development of office and industrial facilities to meet local demand, compete for regional growth opportunities, and create high-quality jobs that match with local housing opportunities.

Consistent: The PD Master Plan allows
for medical and retail uses to meet local
demand and create high quality jobs. The PD
Master Plan also allows for residential uses
thereby providing local housing opportunities
adjacenttoplaces of employment.

Healthy Community
Table 6 General Plan 2035 - Healthy Community Goals and Policies General Plan Healthy Community
Goals and Policies Consistency Analysis
Parks, Recreation, and Trails- GOAL HC-3 Usable,
complete, well-maintained, safe, and high-quality activities and amenities, including active and passive parks and recreational facilities, community gardens, and trailsthat are accessible to all ages, functionalabilities, andsocio-economicgroups.

Consistent: As shown in the conceptual Site Plan, the
PD Master Plan includes over three acres of passive park areas, open space buffer areas,anda totlot connectedby
meandering pedestrian pathways. The passive park and open space on the propertywill allowformultiple activitiesfor all socio-economic groups,functional ability, and ages.

Policy HC-3.8 Private Open Space. Encourage new development topermitpublic accesstoprivateopen spaceandparkswherefeasible and appropriate.

Consistent: The PD Master Plan identifies open space areas that will be available to residents and patrons ofthemedical and retailfacilities.

General Plan Healthy Community
Goals and Policies Consistency Analysis
Access to Health Care- GOAL HC-7 Access for all
residentstohealthcare facilitiesandotherimportant
community health amenities.

Policy HC-7.2 Professional Education. Encourage increased education and professional development resources to support students and employees in the health care field.

Consistent: ThePDMasterPlan providesfor 130,400square
feet ofmedical facilities andimportant health amenitiesfor residents. Itis expected that a wide variety of medical practices will be provided within a campus setting that could encourage increased professional development resources to support students/internsinthe healthcarefield.

Transportation
Table 7 General Plan 2035- Transportation Goals and Policies General Plan Transportation
Goals and Policies Consistency Analysis
GOAL TR-3 A coordinated, continuous network of streets and roads.

Policy TR-3.16 Private Development Access along Arterials.

Require development that occurs along arterial streets to obtain access through a local street or major entrance and not through curb cuts directly ontothe arterial streetwherever possible.

Consistent: The property is not accessed directly from an arterial.

Tennant Avenue and Butterfield Boulevard are the nearest arterials too the property. The property is accessed from Juan Hernandez Drive and BarrettAvenue,which connecttothese arterials.

Policy TR-3.17 Planned Development Access near Highway
101. Require Planned Developments (PDs) for commercial, office, or industrial uses at the intersections of Highway 101 and arterial streets to take access from a public street intersecting with the arterial street at a minimum distance of 600 feet from the freeway on and off ramps, unless the City Engineer finds that direct access to the arterial street or closer access will meet safety standards,
or that mitigating actions will be taken to ensure safe access and minimum interference with traffic flows.

Consistent:Access to the property will be from Juan Hernandez Drive and Barrett Avenue. Juan Hernandez Drive is an existing City street that intersects Tennant Avenueat a safe distance from the offrampofUS Highway 101. The nearest property driveway is more than 700 feet north of TennantAvenue.

Parking-GOAL TR-5 Adequate off-street parking.

Policy TE-5.1 Adequate Parking Supply. Ensure that all
developments provide adequate and convenient parking…
Consistent: The conceptual Site Plan provides for a 500-space parking structure and 96 additionalspacesforthe existing and proposed medical uses, 55 spacesfor the retail use, and 359 spacesfor residential use, which totals 1,010 on-site parking spaces. Based on the parking demand study, the parking supply for the entire project is proposed to total 1,010 spaces, as indicated in the study. The total gross parking requirement for the entire project is 965 spaces using the more conservativeapproach.Therewillbeanoverallsurplusofabout45 spaces usingCity grossparkingrequirements with selected ITE peak parking rates. The projectthereforewillprovideanadequatetotal parkingsupply tomeetthe overall projectdemand.

Parking isconveniently located withinwalking distance to the various uses, and canbe easily facilitatedthrougha shared parkingarrangement.

Policy TR-5.3 Parking Lot Connection. Require crossconnection of parking lots, where feasible and practical, at the time of design review for all commercial and industrial developments.

Consistent: Asshown in thePD Master Plan conceptual SitePlan, parking lots are cross-connected where practical.

Bikeways-GOALTR-8A useable and comprehensive
bikeway system that safely connects neighborhoods with
workplaces and community destinations.

Policy TR-8.12 Bicycle Parking. Bicycle parking and other supportive facilities shall be provided at all schools, parks, recreation facilities, commercial centers, civic buildings(including the library), transit centers, and workplaces basedon the recommendations and standards in the Bikeways Master Plan.

Consistent: Existing bike lanes on Juan Hernandez Drive will serve thedevelopment providing a safebikeway systemto getto and fromthe property. Bicycleparkingwill beprovided at each useon theproperty to encourage residents, employees, and patronsto use alternative means of transportation. On-site bicycle parking will adhere to the Bikeways Master Plan guidelines, and zoning code requirements.

Pedestrian Network- GOAL TR-9 Expanded
pedestrian opportunities.

Policy TR9.7 Concurrent Implementation. Where feasible, implement the trails and pedestrian system concurrent with adjacent developments.

Consistent: Asshown in the conceptual Site Plan,sidewalks and pathways will be provided throughout the property to encourage walking on thecampus. Sidewalks connectto thoselocatedon adjacentstreetsto provide connectivity.

Policy TR 10.3 and TR-10.4 Flexible Work Hours.

Encourage employersto provide a flexible set of working hours toease traffic congestion.Carpooling. SupportaCountywide car/ vanpoolmatching program.

Consistent: The applicantwillprovide educationalmaterialstoend uses or future developers to encourage employers to provide flexible work hours, carpooling options, and other alternative transportation methods as may be available. Bay Area employers with 50 or more full-time employees within theBayArea AirQuality ManagementDistrict geographic boundariesare requiredto register and offer commuter benefitsto their employeesin orderto comply with Air District Regulation 14, Rule1.

Natural Resources and Environment
Table 8 General Plan 2035 - Natural Resources and Environment Goals and Policies General Plan Natural Resources and Environment
Goals and Policies Consistency Analysis
Water Quality and Conservation - GOALNRE-7 Conservation of water resources.

Policy NRE-7.1 Water Standards for Private Development.

Promote water conservation and efficient water use in all private development projects. Require development to exceed State standards for the use of water.

Consistent: Water saving measures will be implemented on the development project in the way of “green” design features.

Very low flow toilets, efficient landscaping, and water capture and reuse will be used to conserve water.

Policy NRE-7.3 Water Efficiency and Landscaping. Promote water conservation and efficient water use in all public and private landscaping plans.

Consistent: Drought tolerant and area-suitable landscape materials will be utilized on the development project to promote water conservation.

EnergyEfficiency-GOALNRE-16Conservationofenergy
resources.

Policy NRE-16.1 Energy Standards for New Development. New development, including public buildings, should be designed to exceed State standards for the use of energy.

Consistent: New development will be designed consistent with energy standards that meet and exceed the City and State standardsforuseof energy.

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

Consistent: Future development of the property will adhere to new State climate change regulations, which include requirements to provide solar energy and otherwise reduce electrical use. Design approval of development isrequired, during which the merits of the project site plan and design will be considered, including renewable energy.

Safety, Services, and Infrastructure
Table 9 General Plan 2035- Safety, Services, and Infrastructure Goals and Policies General Plan Safety, Services and I
nfrastructure Goals and Policies Consistency Analysis
Noise GOALSSI-8 Prevention of noise from interfering with humanactivitiesor causinghealthproblems.

Policy SSI-8.1 Exterior Noise Level Standards. Require new development projects to be designed and constructed to meet acceptable exterior noise levelstandards(see Table SSI-1), asfollows:
▪ Apply a maximumexterior noise level of 60dBALdn
in residential areaswhereoutdoor useis amajor
consideration (e.g., backyards in single-family housing developments and recreation areasin multi-family housing projects).Where theCitydeterminesthatproviding an Ldn
of60dBAorlower cannotbeachieved aftertheapplication
ofreasonable and feasible mitigation, an Ldn of 65 dBA
may be permitted.
▪ Indoor noise levelsshould not exceed an Ldn of 45 dBA in new residentialhousingunits.

Consistent: The conceptual Site Plan includes a 25 foot buffer from the US Highway 101 off-ramp and placesthe parking and parking garage closest to the freeway to further buffer the medical and residential uses. Residentially occupied buildings are located aminimum of 250feet from theUSHighway101s
through lanes. A noise analysis was completed for the project that determined all exterior and interior noise levels would be met with implementationoftherecommendations contained therein.

Mitigation measures will be implemented when the buildings are constructedtoensure the acceptable noise levels are met.

▪ Noise levels in new residential development exposed to an exterior Ldn 60dBAor greatershouldbe limited to a
maximum instantaneous noise level (e.g., trucks on busy streets, train warningwhistles)inbedrooms of 50dBA.

Maximum instantaneous noise levelsin all other habitable roomsshould not exceed 55 dBA. Themaximumoutdoor
noiselevelfornewresidencesnearthe railroad shallbe 70
dBA Ldn, recognizing that train noise is characterized by relatively few loud events.

Policy SSI-8.4 Office Noise Level Standards. Interior noise levelsin office buildingsshould be maintained at 45 dBA Leq (hourly average) or less, rather than 45 dBA Ldn (daily average).

Consistent: Mitigation measures including noise reduction measures and emergency generator noise suppressors will be implemented when the buildings are constructed to ensure the acceptable noise levels aremet. Anoise analysisis provided as part of the CEQA documentation.

Policy SSI-8.9 Site Planning andDesign. Require attention to site planning and design techniques other than sound walls to reduce noise impacts, including: a) installing earth berms, b) increasing the distance between the noise source and the receiver; c) using nonsensitive structures such as parking lots, utility areas,and garages to shield noise sensitive areas; d) orienting buildings to shield outdoor spaces from the noise source; and e) minimizing the noise at its source.

Consistent: Building location was taken into account in the conceptual Site Plan to locate sensitive uses a minimum of 250feetfromthethroughlanes of US Highway101.Building
placement and strategically placed landscaping will help to minimize noise at its source. Additionally, the noise
analysis recommends an 8 foot sound wall along Highway 101 to reduce noise impacts to the residential component of the project.

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8.0 PD MASTER PLAN AND ZONING FINDINGS

8.1 PD Master Plan Findings
The following statements describe how the PD Master Plan complies with the findings required for the approval of a planned development project per Municipal Code Section 18.30.050.H.7 (Findings).

General Plan and Zoning Consistency
a. The proposed development is consistent with the general plan, zoning code and any applicable specific plan or area plan adoptedly city council.

Finding
The PD Master Plan incorporates an amendment of the 2035 General Plan. The 2035 General Plan designation of Mixed Use Flex with a seven dwelling unit per acre minimum and 24 dwelling unit per acre maximum will allow the residential uses proposed within the PD Master Plan and the hospital use, not currently an allowed use on the property. Section 7 outlines in greater detail how the PD Master Plan is consistent with the goals and policies of the 2035 General Plan. As allowed by Municipal Code Section 18.30.050, the PD Master Plan identifies several changes to the development standards that apply in the CS district; these changes include increased building heights and modifications to parking standards for shared parking arrangements. The floor area ratio is reduced from 0.6 to 0.5. The Planning Commission will have say on two aspects of future development, to ensure consistency with zoning regulations. Design approval is required for all development, during which the merits of the site plan and architectural design will be considered. Some uses may require a conditional use permit, and those will require a hearing to determine suitability. During these reviews, consistency with zoning code requirements will be analyzed as they specifically relate to the development project. The PD Master Plan is not located within a specific plan or area plan.

Superior to Development Under Existing Zoning
b. The proposed development is superior to the development that could occur under the standards applicable in the existing zoning districts.

Finding
The PD Master Plan allows a mix of compatible uses, including a much-needed residential component to provide sustainability to the remainder of the uses, and a retail and medical office / hospital component to provide work opportunities to the neighborhood and community. The urgent care/ pharmacy would provide a convenient location for the surrounding neighborhood and patrons to the school to utilize the services it will provide. The affordable multi-family residential uses will allow tenants to age in place, and will provide a near-by down-sizing option for empty nesters in the adjacent single family houses. The passive park with a walking/jogging trail system, located along Barrett Avenue and US Highway 101, will allow for enjoyment by the retail and medical office employees and visitors, as well as by the apartment residents7 and residents of the surrounding neighborhood. The high-density residential use will allow elementary school-aged children to walk to Barrett Elementary School. The retail area will provide convenience services to both the medical/office uses and residents.

Substantial Public Benefit
c. The proposed project will provide a substantial public benefit as defined in Paragraph 8 (Substantial Public Benefit Defined) below. The public benefit provided shall be of sufficient value as determined by the planning commission to justify deviation from the standards of the zoning district that currently applies to the property.

Substantial Public Benefit Defined. When used in this section, “substantial public benefit” means a project feature not otherwise required by the zoning code or any other provision of local, state, or federal law that substantially exceeds the city’s minimum development standards and significantly advances goals of the general plan. A project must include one or more substantial public benefits to be rezoned as a planned development. The public benefit provided shall be of sufficient value as determined by city council to justify deviation from the standards of the zoning district that currently apply to the property. Examples of substantial public benefits include but are not limited to:
a. Housing that is affordable to lower-income households. b. Public plazas, courtyards, open space, and other public gathering places that provide opportunities for people to informally meet and gather. c. New or improved pedestrian and bicycle pathways that enhance circulation within the property and connectivity to the surrounding neighborhood. d. Green building and sustainable development features that substantially exceed the city’s minimum requirements.
e. Preservation, restoration, or rehabilitation of a historic resource. f. Increased transportation options for residents and visitors to walk, bike, and take public transit to destinations and reduce greenhouse gas emissions.
g. Publicly accessible parks and open space beyond the minimum required by the city or other public agency.

h. Habitat restoration and or protection of natural resources beyond the minimum required by the city or other public agency.
7 All references to apartments instead refer to townhomes and single-family detached dwellings as revised by the new site plan revised on October 6, 2020.

Finding
The items shown in bold above are items for which the PD Master Plan exceeds the City’s minimum development standards.

Affordable Housing. The PD Master Plan adds residential uses on the property in conjunction with an amendment to the 2035 General Plan. The residential units are planned at a density of about 20 units per acre, thus increasing the inherent affordability, and 15 percent of the units will be deed restricted affordable units. The PD Master Plan proponent agrees to enter into a contract with the City to ensure the continued affordability of all affordable rental units for 55 years or a longer period of time if required by an applicable construction or mortgage financing assistance program, mortgage insurance program, or rental subsidy program. Rents for the lower income density bonus units will be set at an affordable rent as defined in Section 50053 of the Health and Safety Code.

Single Family for-sale units will comply with the City of Morgan Hill Municipal Code Section 18.48.070, and the city shall ensure that the initial occupant of all affordable for-sale units are households of low-, very low-, or moderate-income, as applicable, that the units are offered at an affordable housing cost as defined in Health and Safety Code Section 50052.5, and that affordability covenants and restrictions continue for 55 years.

Under Municipal Code Section 18.156, residential units are subject to Residential Development Control System (RDCS), and require an application for Residential Building Allotment for any units proposed. SB-330 (2019 – Nancy Skinner) was recently signed by the Governor and eliminates this program that is designed to meter new housing development over time.

Parks and Public Gathering Places. A passive park along Barrett Avenue, a passive park between the retail and medical uses, and installation of a walking/jogging trail around the perimeter of the property are proposed to provide a public benefit. The two park areas encompass approximately 2.20 acres of land. This acreage does not include the walking trail within other open areas of the property. This area can be used by residents, employees, and the general public as they visit the uses on the project site. The tenants on the property may also use the passive park as an amenity for people to informally meet and gather.

Pedestrian and Bicycle Pathways. Pathways are proposed within the park to allow walking opportunities and exercise for seniors and youth. Walkways will connect from the park to all other uses on the property and to the surrounding local streets to provide full connectivity. This will encourage visitors to walk, bike, and use other forms of transportation to reduce greenhouse gas emissions and promote a healthy community. The pathways will provide a connection between the high-density residential uses and Barrett Elementary School, and will connect all uses to the retail commercial area.

Because the development is a Commercial subdivision, the applicant is technically not required to dedicate open space per Title 17, Section 17.28.150. However the proponents, because they are submitting for a PD Master Plan, would like to dedicate a portion of the property as park area, available to the public and to the adjacent Barrett Elementary School. The minimum required open space for this project, if it were a multi-family subdivision, would be to provide recreation amenities in the amount

of .0088 acres per dwelling unit, at 200 dwelling units this would equal 1.76 acres of land. The park area and open space adjacent to Barrett Avenue is approximately 1.73 acres and would be dedicated with an easement, and be available to the general public. Additional public open space is provided where the pathway continues along US Highway 101. Additional open space and amenities are provided for private use of the multi-family residences (approximately 0.70 acres) and as a break area for the employees (approximately 0.44 acres); these would remain in private ownership.

Green and Sustainable Design. The buildings and site furnishings will include green building and sustainable development features such as LED smart lighting, solar power, very low flow toilets, and building materials to encourage healthy indoor air quality.

Residential market-rate and affordable housing rental units are proposed to provide a sustainable land use pattern that reduces the number and length of vehicle trips. This higher density residential and mixed use development is within walking distance to Barrett Elementary School, and will also provide for convenient services within walking distance for the on-site employees and residents.

Bicycle parking and pathways are provided to promote alternative modes of transportation. Landscaping will be designed to meet and exceed the state standards for water conservation, including low water use trees and shrubs, and plantings to provide shade to reduce the need for excessive building cooling.

Community Benefits from the Project
Healthcare Facilities. The PD Master Plan would provide much needed medical facilities to serve the community. The Urgent Care/Pharmacy would reduce trips traveled to receive routine medical care. The Cancer Center would provide services to meet the growing need for this service in the area.

Retail Component. Providing an appropriately sized retail/restaurant building would provide onsite workers the opportunity to have breakfast or lunch within walking distance from their place of employment, avoiding automobile travel.

Creates Jobs for Morgan Hill. The hospital, urgent care/pharmacy, medical office and retail uses proposed will provide varied work opportunities for the people living in Morgan Hill and the surrounding area.

Parks and Public Gathering Places. A passive park along Barrett Avenue, a passive park between the retail and medical uses, and installation of a walking/jogging trail around the perimeter of the property are proposed to provide a public health benefit. The two park areas encompass approximately 2.20 acres of land. It is expected the Restaurants will also have outdoor dining areas, providing places to gather.

Pedestrian and Bicycle Pathways. Pathways are proposed within the parks to allow walking opportunities and exercise for all ages. Walkways will connect from the park and to all other uses on the property and to the sidewalks on the surrounding streets, providing full connectivity.

Affordable Housing. The PD Master Plan adds residential uses on the property in conjunction with an amendment to the 2035 General Plan. As proposed in the Conceptual Site Plan, the residential units

are planned at a density of about 20 units per acre, thus increasing the inherent affordability, and 15 percent of the units will be deed restricted affordable units. If the project is designed with Single Family for-sale units, affordable housing will be provided per the City code.

School Drop-off. The project will help to alleviate the parking and drop-off issues associated with Barrett Avenue Elementary School. Cross walks will be installed on both adjoining streets to enhance walkability to and from the project. Parking to serve the school and public is expected to be provided in the park adjacent to Barrett Avenue.

Green and Sustainable Design. The buildings and site furnishings will include green building and sustainable development features.

Landscape the Site. The development will provide abundant landscaping throughout to create a green and aesthetic feel, as well as screen development from the traffic on US Highway 101, Juan Hernandez Drive and Barrett Avenue.

Restore Habitat. The project tree and landscape planting will enhance wildlife on the project site as well as provide a visually pleasing atmosphere for the surrounding area. Flowering plants and trees are proposed to accomplish this restoration. Adequate Property Size
Adequate Property Size
d. The site for the proposed development is adequate in size and shape to accommodate proposed land uses.

Finding
With approximately 19.67 acres of land, there is adequate land area to provide the uses proposed in the PD Master Plan. The medical office / hospital uses proposed are intentionally located adjacent to the existing medical office to promote a walkable medical campus. The retail uses, including public services, are proposed along the active local street to ensure visibility and ease of access by the surrounding residential uses and provide easy access by the residents and employees on the property. Residential uses, providing affordable housing, are located on the property to provide adequate separation from the highway and close proximity to the passive park and Barrett Elementary School.

The PD Master Plan under a Mixed Use Flex general plan designation, which includes multi-family residential uses, retail commercial and restaurant, medical office/hospital uses, and open space parks, will provide a dynamic environment of compact living. This will allow residents and employees to meet daily needs and lessen the need for a private automobile.

Adequate Infrastructure
e. Adequate transportation facilities, infrastructure, and public services exist or will be provided to serve the proposed development.

Finding
The PD Master Plan, which abuts the US Highway 101 off-ramp, is surrounded on two sides by local streets and has a driveway connection just south of the existing medical offices, used for access to the medical campus and additional driveways are proposed for site access. Juan Hernandez Drive and Barrett Avenue are existing local streets with the capacity to handle the development of this property. Circulation to the property from within Morgan Hill is provided by Tennant Avenue and Butterfield Boulevard. Public utilities exist in the surrounding streets and can serve the proposed development.

Compatible with Surroundings
f. The proposed development will not have a substantial adverse effect on surrounding property and will be compatible with the existing and planned land use character of the surrounding area.

Finding
The PD Master Plan deviates from the approved commercial zoning existing on the property by the addition of hospital and multi-family residential uses. With the incorporated general plan amendment to Mixed Use Flex, and the mixed use development envisioned in the conceptual Site Plan, suitable transitions between the existing uses will be provided. There are no uses included in the conceptual Site Plan that would have an adverse effect on the surrounding residential and school uses. The existing residential uses adjacent to Juan Hernandez Drive and Barrett Avenue, and Barrett Elementary School will benefit from the retail and restaurant uses that the PD Master Plan provides. The park and open space provided on the property will benefit the adjacent Barrett Elementary School and the adjacent residences. The high density residential use will provide a suitable buffer between the adjacent single- family residences and school, and the walkable medical campus. The uses proposed will not cause odors, health risks, or safety issues to the surrounding sensitive uses. Adequate measures will be taken during the construction phase to protect the surrounding property from noise, vibration, dust, and construction traffic.

Zoning Map Findings
g. Findings required for the concurrent approval of a zoning map amendment can be made.

Finding
The project site is in a Services Commercial zoning district with a PD combining overlay so the finding can be made that it is consistent with the zoning map. Amending the 2035 General Plan use to allow the residential and hospital use will not alter the zoning map.

8.2 Zoning Amendment Findings
The following statements describe how the PD Master Plan complies with the findings required for the approval of a planned development project per Municipal Code Section 18.114.060 - Findings for Approval.

A. Findings for all Zoning Code and Zoning Map Amendments.

General Plan Consistency

1. The proposed amendment is consistent with the general plan and any applicable specific plan as provided by Government Code Section 65860.

Finding
With the general plan amendment that is incorporated into the PD Master Plan, the zoning map amendment is consistent with the 2035 General Plan. The general plan land use diagram amendment from Commercial to Mixed Use Flex allows specific residential uses to be included in the CS district with the PD overlay.

Public Interest, Health, Safety, Convenience, Welfare

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

Finding
The multi-family residential uses would be beneficial to the public interest, health, safety, convenience, and welfare of the city. The multi-family residential uses would provide more opportunities for residents to work near the medical offices, retail uses, and medical/hospital facility on the property, all of which provide job opportunities for the onsite and surrounding residential uses. The residential uses, including 15 percent affordable units, would also allow seniors the opportunity to age in place, consistent with 2025 General Plan policy. Providing residential uses in close proximity to the commercial and office uses would also reduce the greenhouse gas emissions if the residents were employees or were patrons of the proposed uses, and would enable school-aged children to walk to school. The multi-family residential housing added on this property, when capped at 150 units, would not create an overload on the local street system. Additionally, where the housing is positioned on the property allows for a step down from the existing residential and public facility use to the denser office and commercial uses. The hospital use would also be beneficial to the public interest, health, safety, convenience, and welfare of the city. The hospital would provide much needed medical service to the community and a variety of job opportunities.

Internal Consistency
B. Additional Finding for Zoning Code Text Amendments. The proposed amendment is internally consistent with other applicable provisions of the zoning code.

Finding
No changes to the existing zoning code text will be made. The PD Master Plan continues to rely on Zoning Code development standards for the most part. Several deviations from established standards are specifically outlined in the PD Master Plan, consistent with the regulations for establishing PD districts and PD Master Plans. There would be no internal inconsistencies as a result of the PD Master Plan.

Physically SuitableSite
C. Additional Finding for Zoning Map Amendments. The affected site is physically suitable in terms of design, location, shape, size, and other characteristics to ensure that the permitted land uses and development will comply with the zoning code and general plan and contribute to the health, safety, and welfare of the property, surrounding properties, and the community at large.

Finding
The 19.67 acre parcel is suitable in design, location, shape and size to accommodate the uses allowed by the PD Master Plan. The multi-family residential use would be appropriate next to the passive park located on the property along Barrett Avenue and would serve as a buffer from the more intense uses of office/commercial on the southern end of the property. With the amendment to the 2035 General Plan changing the land use designation from Commercial to Mixed Use Flex, the PD Master Plan is consistent with the general plan and zoning code. All of the uses in the PD Master Plan will contribute to the health, safety, and welfare of persons living or working on the property and surrounding properties, and to the community at large. The PD Master Plan promote community health and social interaction within the neighborhood by providing retail stores, a restaurant, plazas, and open spaces as gathering places. The pathways provide places for healthful exercise.

9.0 LEGAL DESCRIPTIONS
Legal Description – APN 817-09-039 and 817-09-041
Real property in the City of Morgan Hill, County of Santa Clara, State of California, described as follows:

All of parcels “D” and “E”, as shown on that certain Parcel Map filed for record in the Office of the Recorder, County of Santa Clara, State of California on May 24, 1983 in Book 513 of Maps, on Pages 14, 15, and 16, more particularly described as follows:

Beginning at the most southerly corner of said parcel “D”, as shown on said Parcel Map; thence 1) South 89°03’ 48” West, 637.61’, thence
2) Along a non-tangent circular curve, concave west, the center of which bears South 89°03’ 47” West, with a radius 536.00’, through a central angle 3° 44’ 38”, an arc length of 35.02 feet; thence 3) North 89° 03’ 48” East, 276.87 feet; thence
4) North 19° 31’ 04” East, 203.35 feet; thence
5) North 70° 28’ 56” West, 58.00 feet; thence
6) North 25° 28’ 56” West, 83.00 feet; thence
7) South 64° 31’ 04” West, 321.00 feet; thence
8) Along a non-tangent circular curve, concave southwest, the center of which bears South 68° 32’ 11” West, with a radius 536.00’, through a central angle 4° 00’ 40”, and arc length of 37.52 feet; thence 9) North 25° 28’ 29” West, 711.68 feet; thence
10) Along a tangent circular curve, concave east, with a radius 20.00 feet, through a central angle 89° 59’ 29”, and arc length of 31.41 feet; thence
11) North 64° 31’ 00” East, 717.84 feet; thence
12) Along a non-tangent circular curve, concave south, the center of which bears South 15° 32’ 49” East, with a radius 20.00 feet, through a central angle 42° 46’ 35”, an arc length 14.93 feet; thence

13) Along a tangent reverse circular curve, concave northwest, with a radius 42.06 feet, through a central angle 137° 35’ 51”, an arc length 101.01 feet; thence
14) South 20° 31’ 38” East, 842.39 feet; thence
15) Along a non-tangent circular curve, concave west, the center of which bears South 69° 29’ 06” West, with a radius 547.00 feet, through a central angle 46° 59’ 24”, an arc length 448.61 feet; thence 16) South 26° 26’ 41” West, 17.26 feet, more or less to the Point of Beginning End of Description
All of parcels “C”, as shown on that certain Parcel Map filed for record in the Office of the Recorder, County of Santa Clara, State of California
Legal Description – APN 817-09-040
The land referred to herein below is situated in the City of Morgan Hill, County of Santa Clara, State of California and is described as follows:

Parcel One:

Parcel C, as shown on Parcel Map recorded in Book 513 of Maps, at Pages 14, 15, 16, Santa Clara County Records, and being a portion of Lot 25 and lot 52 of “Catherine Dune Ranch Map No. 7”, as shown on Map thereof, recorded in Book “L” of Maps, at page 26, Santa Clara County Records.

Parcel two:

An easement for ingress and egress over, under, on and across a strip of land 35.00 feet wide, described as follows:

Beginning at an iron pipe distant thereon South 25 degrees 57’ 55” East 126.93 feet from the Southerly corner common to Lots 24 and 25, as shown on said Map and running thence North 89 degrees 03’ 48” East 276.87 feet, South 00 degrees 56 deg. 12” East 35.00 feet, and South 89 degrees 03’ 48” West 272.72 feet; thence along a curve to the left from a tangent bearing of North 00 degrees 56’ 12” West, having a radius of 536.00 feet and a Central Angle of 3 degrees 44’ 48”, a distance of 35.03 feet to the Point of Beginning.

SHEET REVISIONS DATE JOB NO.

MK BY SCALE
DATE
CK

ROSEWOOD MEDICAL
MORGAN HILL, CALIFORNIA 212006
JULY 2023

PD AMENDMENT

AS SHOWN
. . . . . Brookfield Properties
12657 Alcosta Blvd
San Ramon, CA 94583
SITE PLAN-ALTERNATIVE 10B SITE INFORMATION ADDRESS
· 16130 JUAN HERNANDEZ DRIVE (EXISTING MEDICAL BUILDINGS) 817-09-040· LAND ONLY 817-09-039, 041 PROJECT INFORMATION PARCEL A MEDICAL OFFICE (9.61 AC) 75,000 SQFT 3-STORY BUILDING 100,000 SQFT 4-STORY BUILDING 100,000 SQFT 4-STORY BUILDING 6-STORY PARKING STRUCTURE PARCEL C SINGLE AND MULTI-FAMILY RES. 34 DUET HOMES 86 TOWN HOMES ACTIVE AND PASSIVE OPEN SPACE GENERAL PLAN LAND USE DESIGNATION: MIXED-USE FLEX ZONING: MUF (PD) DEVELOPMENT STANDARDS (AREA A) SETBACKS FRONT 25-FEET REAR 0-FEET SIDE 0-FEET HEIGHT-MEDICAL* 4-STORIES/65-FEET HEIGHT-GARAGE* 6-STORIES/65-FEET BUILDING COVERAGE 0.60 FAR 0.66 *EXCEPTIONS PER MHMC 18.56 PARKING-REQUIRED (BASED ON PROPOSED PARKING RATIO) MEDICAL OFFICE 4 SPACES/1,000 SQFT PROPOSED MEDICAL 275,000 SQFT (GROSS) 275,000/250 = 1,100 SPACES PARKING PROVIDED SURFACE 269 PARKING GARAGE 965 1,234 1 SPACE/223 SQFT OR 4.5 SPACES/1,000 SQFT RESIDENTIAL N/A FIGURE REVISED JULY 21, 2023 7-10-23 . NOTES UPDATED PER REVISED SITE PLAN JAM . AREA C 10.06 AC

SURFACE PARKING
269 SPACES EXIST. DRIVEWAY TO BE CLOSED
BARRETT AVENUE 4-STORY BUILDING 100,000 SQFT 4-STORY BUILDING 100,000 SQFT 3-STORY BUILDING 75,000 SQFT

RAMP UP
6%

STAIR/ ELEV
STAIR
ELEV

PARKING GARAGE
124 SPACES/ GRD FLR
167 SPACES/ TYP. LEVEL 173 SPACES/ 4TH LEVEL AREA A 9.61 AC JUAN HERNANDEZ DRIVE

SHEET REVISIONS DATE JOB NO.

MK BY SCALE
DATE
CK

ROSEWOOD MEDICAL
MORGAN HILL, CALIFORNIA 212006
JULY 2023

PD AMENDMENT

AS SHOWN
. . . . . Brookfield Properties
12657 Alcosta Blvd
San Ramon, CA 94583 SHEET PROJECT DATA CONSTRUCTION NOTES PROJECT DESIGNED IN COMPLIANCE WITH CENTRAL COAST REGIONAL WATER QUALITY CONTROL BOARD PERFORMANCE REQUIREMENTS 1-4. STORMWATER BIORETENTION BASIN DESIGNED TO MEET CENTRAL COAST REGIONAL WATER QUALITY CONTROL BOARD (CCRWQCB) PERFORMANCE REQUIREMENT 2 FOR WATER QUALITY TREATMENT AND PERFORMANCE REQUIREMENT 3 FOR RUNOFF RETENTION OF THE 95% STORM EVENT. UNDERGROUND CHAMBER SYSTEM DESIGNED TO MEET CCRWQCB PERFORMANCE REQUIREMENT 2 FOR WATER QUALITY TREATMENT AND PERFORMANCE REQUIREMENT 3 FOR RUNOFF RETENTION OF THE 95% STORM EVENT. STORMWATER DETENTION BASIN DESIGNED TO MEET CCRWQCB PERFORMANCE REQUIREMENT NO. 4. THE BASIN IS DESIGNED TO DETAIN STORMWATER FOR THE 2 YEAR THROUGH 25 YEAR STORM EVENTS FOR ROSEWOOD RESIDENTIAL AND WITH AN ASSUMED ROSEWOOD MEDICAL IMPERVIOUS AREA OF 6.02 AC. PROPOSED MEDICAL IMPERVIOUS AREA TRIBUTARY TO THE BASIN IS 4.93 AC. ACCESSIBLE PARKING. SEE SITE PLAN FOR PARKING COUNT AND REQUIREMENTS. TRASH ENCLOSURE DOMESTIC WATER METER AND BACKFLOW PREVENTER FIRE MAIN DOUBLE CHECK VALVE ASSEMBLY PUBLIC WATER MAIN PRIVATE DOMESTIC WATER PRIVATE FIRE LINE ACCESS EASEMENT, PUBLIC SERVICE EASEMENT, STORM DRAIN EASEMENT SOUTHBOUND LEFT TURN LANE CHANNELIZATION FIRE HYDRANT CURB CUT TRENCH DRAIN LEGENDASPHALT PAVING PROPOSED BUILDING CONCRETE STORMWATER BIORETENTION BASIN PROPERTY LINE SEWER BUILDING POINT OF CONNECTION WATER BUILDING POINT OF CONNECTION FIRE BUILDING POINT OF CONNECTION FIRE HYDRANT FIRE DEPARTMENT CONNECTION AND POST INDICATOR VALVE UTILITY MANHOLE STORM DRAIN INLET UNDERGROUND STORM CHAMBER CONCEPTUAL SITE AND UTILITY PLAN C2.0 1. ASSESORS PARCEL NUMBER 817-09-039 817-09-040 817-09-041 2. EXISTING SITE PERVIOUS 8.45 AC IMPERVIOUS 1.16 AC TOTAL 9.61 AC 3. PROPOSED SITE PERVIOUS 3.37 AC IMPERVIOUS 6.24 AC TOTAL 9.61 AC 4. OFFSITE UTILITIES STORM DRAIN CITY OF MORGAN HILL SANITARY SEWER CITY OF MORGAN HILL WATER CITY OF MORGAN HILL GAS & ELECTRIC PG&E TELEPHONE VERIZON 5. ONSITE UTILITIES STORM DRAIN PRIVATE SANITARY SEWER PRIVATE WATER CITY OF MORGAN HILL/PRIVATE GAS & ELECTRIC PG&E TELEPHONE VERIZON 6. LEGAL DESCRIPTION PARCELS C, D, AND E, AS SAID PARCELS ARE SHOWN AND SO DESIGNATED ON THE PARCEL MAP FILED FOR RECORD MAY 24, 1983, IN BOOK 513 OF MAPS, PAGE 16, SANTA CLARA COUNTY RECORDS, STATE OF CALIFORNIA. 7. PARCEL AREAS PARCEL A 9.61 AC PARCEL B 10.06 AC TOTAL 19.67 AC 8. BUILDING SETBACKS FRONT 25' REAR 0' SIDE 0' STORMWATER FACILITY NOTE: STORMWATER TREATMENT BASINS AND OTHER STORMWATER FACILITIES ARE LOCATED CONCEPTUALLY ON THIS PLAN. THE DEVELOPER RESERVES THE RIGHT TO RELOCATE, OR ADD ADDITIONAL STORMWATER FACILITIES AS NECESSARY TO COMPLY WITH CURRENT CITY AND STATE POST-CONSTRUCTION STORMWATER REQUIREMENTS. SDMH RIM 339.4± INV 334.6± BUILDING 1 BUILDING 2 BUILDING 3 PARKING GARAGE FF 341.2 FF 341.1 FF 341.7 FF 340.7 CONNECT TO EX WATER MAIN CONNECT TO EX WATER MAIN U.S. ROUTE 101 (SOUTHBOUND OFF-RAMP) ROSEWOOD RESIDENTIAL JUAN HERNANDEZ DRIVE EX DRIVEWAY TO BE REMOVED DETENTION BASIN TOP: 336.0 BOTTOM: 333.0 SDOS RIM 340.0± INV 334.8± 61' ESMT 41'
38' 71'
88'
44'
20' STORM
DRAIN
ESMT

STORM DRAIN ESMT
20' PSE
10'
10' PSE
20' STORM DRAIN ESMT (PARCEL B)
144'
STREET A.1
(PRIVATE) SSMH RIM 340.3± INV 331.1± SSMH RIM 340.6± INV 330.8± SSMH RIM 340.7± INV 330.7± SSMH RIM 339.9± INV 329.9± SSMH RIM 337.6± INV 329.6± SSMH RIM 340.1± INV 332.2± INV 332.5± SD PRETREATMENT MANHOLE SDMH RIM 340.6± INV (W) 333.7± INV (E) 335.1± OVERFLOW SDMH RIM 340.4±INV 334.0± SDMH RIM 340.6± INV 334.5± SDDI RIM 340.1± INV 333.9± SDDI RIM 340.0± INV 334.3± SDOS GR 338.3± INV 333.8± SDMH RIM 340.2± INV 332.9± SDMH RIM 340.5± INV 333.0± SDDI RIM 340.1± INV 332.7± SDCI RIM 340.0± INV 333.6± SDCI RIM 339.6± INV 334.8± SDDI RIM 339.7± INV 334.4± SDOS GR 338.0± INV 332.6± SDOS GR 335.0± INV 333.1± SDOS GR 337.0± INV 333.8± SDOS GR 338.1± INV 333.2± SDMH RIM 339.9± INV 333.2± SDMH RIM 340.2± INV 332.2± SDOS GR 335.0± INV 331.8± SDOS GR 335.9± 26'
26' (PARCEL A)
20'
ST. JAMES
DRIVE

BARRETT AVENUE

CONNECT TO EX SEWER MAIN
INV SS IN 329.3± CONNECT TO EX STORM DRAIN SDFI GR 337.0± INV SD IN 332.4± CONNECT TO EX STORM DRAIN SDMH RIM 335.7± INV SD IN 331.7± CONNECT TO EX STORM DRAIN SDOS GR 335.8 INV SD IN 332.9± DROP OFF

City of Morgan Hill
Resolution No. 26-XX

RESOLUTION NO. 26-XX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF MORGAN HILL CERTIFYING THE FINAL

SUBSEQUENT ENVIRONMENTAL IMPACT REPORT

FOR THE ROSEWOOD/MORGAN HILL MEDICAL

CAMPUS PROJECT AS CONSISTENT WITH THE

REQUIREMENTS OF THE CALIFORNIA

ENVIRONMENTAL QUALITY ACT AND ADOPTING

CEQA FINDINGS OF FACT REGARDING

ENVIRONMENTAL IMPACTS AND A RELATED

MITIGATION MONITORING AND REPORTING

PROGRAM
WHEREAS, a Subsequent Environmental Impact Report (SEIR) (SCH Number 2023080645) was prepared for the Rosewood/Morgan Hill Medical Campus Project in accordance with the California Environmental Quality Act (CEQA). The SEIR identifies new significant impacts or substantially more severe significant impacts that the proposed project would result in beyond those identified for the 2020 Lillian Commons Medical Campus Project (Lillian Commons Project) Initial Study/Mitigated Negative Declaration (2020 IS/MND) (State Clearinghouse [SCH] No. 2020060601). As part of the analysis, the Draft SEIR identifies applicable mitigation measures from the 2020 IS/MND, modified mitigation measures, and new mitigation measures that would be required to be implemented as part of the proposed project. A Notice of Preparation (NOP) was circulated between August 25, 2023, and September 25, 2023, to receive comments regarding the scope and content of the SEIR. The Draft SEIR was circulated between September 5, 2025, and November 3, 2025; and
WHEREAS, the City of Morgan Hill received comments on the Draft SEIR by seven individuals, groups, and public agencies. Responses to those comments were included in a Final SEIR document in accordance with the requirements of CEQA; and WHEREAS, the information contained in the Final SEIR, consisting of the Draft SEIR document in combination with the Final SEIR document, was reviewed and considered by the Planning Commission at a duly-noticed Planning Commission public hearing held on February 10, 2026; and the Planning Commission took action to recommend to the City Council that the Final SEIR be certified as being found complete, correct, and in substantial compliance with the requirements of CEQA; and
WHEREAS, the SEIR concluded that implementation of the proposed project could result in significant effects on the environment and identified mitigation measures that would reduce all of the identified significant effects to a less-than-significant level; and

City of Morgan Hill
Resolution No. 26-XX

WHEREAS, in connection with the approval of a project involving the preparation of a SEIR that identifies one or more significant environmental effects, CEQA requires the decision-making body of the lead agency to incorporate feasible mitigation measures that would reduce those significant environmental effects to a less-than-significant level and adopt a Findings of Fact; and
WHEREAS, whenever a lead agency approves a project requiring the implementation of measures to mitigate or avoid significant effects on the environment, CEQA also requires a lead agency to adopt a mitigation monitoring and reporting program to ensure compliance with the mitigation measures during project implementation, and such a mitigation monitoring and reporting program has been prepared for the proposed project for consideration by the decision-maker of the City of Morgan Hill as lead agency for the proposed project (the "Mitigation Monitoring and Reporting Program"); and
WHEREAS, the City of Morgan Hill is the lead agency for the proposed project, and the City Council is the decision-making body for the proposed approval to construct and otherwise undertake the proposed project; and
WHEREAS, the SEIR and the related Findings of Fact and Mitigation Monitoring and Reporting Program for the project are, by this reference, incorporated into this Resolution as if fully set forth herein; and
WHEREAS, the SEIR, related Findings of Fact, and Mitigation Monitoring and Reporting Program for the proposed project are on file in the Development Services Department located at 17575 Peak Avenue, Morgan Hill, California, 95037, and are available for inspection by any interested person at that location.

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

SECTION 1: FINDINGS OF FACT BY THE CITY COUNCIL OF THE CITY OF

MORGAN HILL REGARDING THE FINAL SUBSEQUENT

ENVIRONMENTAL IMPACT REPORT FOR THE
ROSEWOOD/MORGAN HILL MEDICAL CAMPUS PROJECT: The City
Council finds, determines, and declares the findings and facts as set forth in the attached Exhibit "A" by this reference incorporated herein.

SECTION 2: CERTIFICATION OF FINAL SEIR: The City Council hereby certifies that the Final SEIR has been completed in compliance with CEQA.

PASSED AND ADOPTED THIS ____ DAY OF ____ 2026, AT A REGULAR MEETING OF THE CITY COUNCIL BY THE FOLLOWING VOTE:

AYES: COUNCIL MEMBERS:

City of Morgan Hill
Resolution No. 26-XX

NOES: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

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

City of Morgan Hill
Resolution No. 26-XX

CERTIFICATE OF THE CITY CLERK

I, MICHELLE BIGELOW, CITY CLERK OF THE CITY OF MORGAN HILL, CALIFORNIA, do hereby certify that the foregoing is a true and correct copy of Resolution No. 26-XX, adopted by the City Council of the City of Morgan Hill, California at their regular meeting held on the ____ day of ________, 2026.

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

DATE: _____________________ _____________________________ MICHELLE BIGELOW, City Clerk

City of Morgan Hill
Resolution No. 26-XX

EXHIBIT "A"

FINDINGS OF FACT BY THE CITY COUNCIL OF THE CITY OF MORGAN HILL

REGARDING THE FINAL SUBSEQUENT ENVIRONMENTAL IMPACT REPORT FOR THE ROSEWOOD/MORGAN HILL MEDICAL CAMPUS PROJECT (State Clearinghouse No. 2023080645)
The following Findings, the mitigation measures specified herein, and the Mitigation Monitoring and Reporting Program attached hereto are hereby adopted by the Morgan Hill City Council in accordance with the California Environmental Quality Act (CEQA), Public Resources Code Sections 21081, 21081.5 and 21081.6, and the CEQA Guidelines, Title 14, California Code of Regulations, Sections 15091 and 15092 for the Rosewood/Morgan Hill Medical Campus Project (project).

Section 15091 of the CEQA Guidelines states that:
a. No public agency shall approve or carry out a project for which an EIR has been certified which identifies one or more significant environmental effects of the project unless the public agency makes one or more written findings for each of those significant effects, accompanied by a brief explanation of the rationale for each finding. The possible findings are:
(1) Changes or alterations have been required in, or incorporated into, the project which avoid or substantially lessen the significant environmental effect as identified in the final EIR.
(2) Such changes or alterations are within the responsibility and jurisdiction of another public agency and not the agency making the finding. Such changes have been adopted by such other agency or can and should be adopted by such other agency.
(3) Specific economic, legal, social, technological, or other considerations, including provision of employment opportunities for highly trained workers, make infeasible the mitigation measures or project alternatives identified in the final EIR.

In short, CEQA requires that the lead agency adopt mitigation measures or alternatives, where feasible, to avoid or mitigate significant environmental impacts that will otherwise occur with implementation of the project. Project mitigation or alternatives are not required, however, where they are infeasible or where the responsibility for modifying the project lies with another agency.

For those significant effects that cannot be mitigated to a less-than-significant level, the public agency is required to find that specific overriding economic, legal, social,

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Resolution No. 26-XX

technological, or other benefits of the project outweigh the significant effects on the environment. The CEQA Guidelines state in Section 15093 that:
“If the specific economic, legal, social, technological, or other benefits of a proposed project outweigh the unavoidable adverse environmental effects, the adverse environmental effects may be considered ‘acceptable.” The project would not result in significant and unavoidable impacts. Thus, a statement of overriding considerations is not required.

A. ENVIRONMENTAL REVIEW PROCESS
The Subsequent Environmental Impact Report (SEIR) prepared by the City of Morgan Hill (City) for the Rosewood/Morgan Hill Medical Campus Project (project) consists of the Draft SEIR and the Final SEIR/Response to Comments on the Draft SEIR.

On August 25, 2023, the City of Morgan Hill circulated a Notice of Preparation (NOP) for a 30-day comment period to request input on the types of impacts that could result from the proposed project. The Draft SEIR was made available for public review for a 60-day comment period that began on September 5, 2025 and ended on November 3, 2025. The Notice of Availability of a Draft SEIR was posted with the Santa Clara County Clerk, sent to the State Clearinghouse, published on the City’s website, and mailed to responsible agencies. The City of Morgan Hill received a total of seven written comment letters during the public comment period, as well as verbal comments received from one commenter at the community open house meeting held on October 23, 2025.

The City released the Final SEIR for public review on December 19, 2025. The Final SEIR consists of copies of all comments received on the Draft SEIR, a summary of verbal comments received on the Draft SEIR, a list of commenters, and all responses to comments. The Final SEIR, Draft SEIR, and Mitigation Monitoring and Reporting Program (MMRP) together comprise the SEIR for the project. The analysis and conclusions contained in the SEIR reflect the independent judgment of the City.

B. PROJECT DESCRIPTION
Chapter 3 of the Draft SEIR includes a detailed description of the project. Revisions to the project description were not required.

The approximately 9.61-acre project site consists of two parcels identified by Assessor’s Parcel Numbers (APNs) 817-09-040 and -057, located to the southeast of the Juan Hernandez Drive/Barrett Avenue intersection in the City of Morgan Hill. The majority of the project site is currently undeveloped and contains ruderal grasses. Two medical office buildings totaling 15,900 square feet (sf), as well as a paved surface parking lot and landscaping trees, occur on a 1.69-acre portion of the project site.

Development of the project site was originally evaluated in the 2020 Lillian Commons

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Project IS/MND, which anticipated development of a larger 19.67-acre project site with a 4,500-sf urgent care facility, a 10,000-sf medical building, a 100,000-sf medical office/hospital containing 55 beds, a three-story parking garage with 500 parking spaces, a 10,000-sf commercial retail/restaurant building, and a 200-unit multi-family residential complex. The 2020 IS/MND found that all potential physical environmental effects attributable to the approved project would be reduced to a less-than-significant level and was adopted by the Morgan Hill City Council. Subsequently, modifications to the proposed project were proposed and the City determined that the modified project could result in new or substantially increased significant impacts not previously identified in the 2020 IS/MND. Thus, the City prepared a SEIR pursuant to CEQA Guidelines Section 15162 focused on the topics that could potentially result in significant effects.

The proposed project consists of a request to amend an adopted Planned Development (PD) Master Plan to allow an increase in medical office square footage within the 9.61- acre project site. The project proposes to construct a total of 275,000 sf of medical office uses, comprised of two 100,000-sf, four-story medical office buildings, and one 75,000-sf medical office building. Through approval of the PD Master Plan Amendment, the proposed project would result in a net increase of 150,500 sf of medical/commercial uses relative to the originally approved project. After accounting for the existing 15,900- sf of medical office use that would be demolished as part of the proposed project, the total net increase would be 134,600 sf. The proposed project would also include a 54,000-sf, six-story parking structure, comprised of 965 parking spaces. As a result of the increased square footage, the building coverage and floor area ratio (FAR) standards would also change. The maximum allowed building coverage will increase from 50 percent to 60 percent and FAR would be removed entirely from PD Master Plan development standards. The three medical office buildings would each be located to the south of Rosewood Lane. The maximum allowable building height for the medical office buildings would be increased as part of the PD Master Plan Amendment, from 55 feet to 65 feet. Lastly, the required parking for “Medical Office” uses would change from one space per 200 sf of net floor area to one space per 250 sf of net floor area.

The proposed PD Master Plan Amendment would also add assisted living facilities as a permitted use and change daycare facilities, farmers markets, residential care facilities, and skilled nursing facilities from conditionally permitted to permitted uses.

With respect to the parking structure, the originally approved project included construction of a three-story, 32-foot-tall parking structure, whereas the proposed project is proposing development of a six-story, 65-foot-tall parking structure. Thus, the proposed project modifications would result in a net increase of three floors and 33 feet.

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Resolution No. 26-XX

The project objectives are to:

1. Create an entitled (close to shovel-ready) project that has the breadth of uses and maximum capacity to ensure the optimal pathway to deliver high-quality medical services to Morgan Hill and the surrounding South County communities.

2. Approve a project that has the ability to be phased to meet existing needs and scale up in size as demand increases.
a. As a hospital would be the last piece of a medical campus (according to hospital groups), the existing approved 124,500-sf of space would not be large enough to eventually accommodate a hospital footprint, this amendment rectifies that.

3. As Morgan Hill does not have the population density of other parts of the Bay Area to justify a standalone hospital, this amendment enables a continuum of care to create the localized demand for a centralized healthcare facility. Allowing uses such as skilled-nursing facilities, assisted living and residential care as permitted uses on a portion of the campus would help create demand desired by healthcare providers to make an investment of such magnitude for clinics, medical office buildings and a hospital, as well as create additional services for residents of Morgan Hill seeking healthcare options.

4. Provide easy and direct vehicular access to and from US-101 for medical services that are located on Juan Hernandez Drive, a street that can accommodate the anticipated traffic demands of the proposed project and can be served by existing (nearby) utilities.

5. Take advantage of the investments made by the Rosewood residential project, which has made the investment and has constructed the access road, detention pond, and utility infrastructure for the medical campus site that will remove potential obstacles for rapid development by a medical services provider.

6. Enable a highly desirable site to incentivize the investment of hundreds of millions of dollars creating hundreds of jobs (e.g. construction and permanent) in the Morgan Hill community.

7. Deliver healthcare options for Morgan Hill residents. a. The City’s Economic Blueprint identifies four industries that are key to Morgan Hill’s future, one of which is “Healthcare.” Under “Healthcare,” the explicit goal is to “[g]row and foster the medical service and diagnostics industry by attracting services and facilities.”
b. The Economic Blueprint has specific action items related to healthcare:
i. Expand Locations for Medical Uses: The main tools the City has to regulate land development are the General Plan and the Zoning Code. These tools support medical uses through ease and clear rules for development. The City should Ensure General Plan & Zoning Code Allow for a Range of Medical Uses (Action #32). ii. Actively Promote Locations for Medical Uses: The City should Identify & Market PreZoned Medical Sites (Action #33) to clearly outline pre-approved locations for medical services. Similar to the Auto Dealer Incentive Policy. This direction clearly announces that

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the City wants these uses in the community and eases their ability to locate. To create awareness of new zoning regulations the City should Increase Outreach and Medical Service Providers (Action #34) and Create & Implement a Targeted Marketing Campaign (Action #35).

The proposed project would require the following approvals:
 Certification of the SEIR: Certify the Rosewood/Morgan Hill Medical Campus Project SEIR and make environmental findings pursuant to CEQA.  PD Master Plan Amendment to increase the maximum allowed medical office square footage within the project site to 275,000 sf, building coverage to 60 percent, medical office parking to one space per 250 sf, and maximum building height to 65 feet. Additionally, FAR will be eliminated. Assisted living facilities will be added as a permitted use and day care centers, farmers markets, residential care facilities, and skilled nursing facilities will all be changed from conditionally permitted to permitted uses.

C. SIGNIFICANT IMPACTS IDENTIFIED IN THE SEIR THAT ARE REDUCED TO A LEVEL OF “LESS THAN SIGNIFICANT” BY THE MITIGATION MEASURES

INCORPORATED INTO THE PROJECT
The following findings are hereby made by the City of Morgan Hill City Council for the significant environmental effects identified in the SEIR that would be reduced to a less than significant level through incorporation of mitigation measures. The City finds for each of the significant or potentially significant impacts identified in this section, that based upon substantial evidence in the record, changes or alterations have been required or incorporated into the project which avoid or substantially lessen the significant effects as identified in the SEIR. Adoption of the mitigation measures set forth below will reduce these significant or potentially significant effects to less-thansignificant levels and will effectively make the mitigation measures part of the project. In addition, compliance with City laws and other applicable regulations will further reduce project impacts. Therefore, the City finds that based upon substantial evidence in the record, changes or alterations have been required or incorporated into the project which avoid or substantially lessen the significant effects as identified in the SEIR.

The Final SEIR identified several impacts associated with the project that would be reduced to a level of less than significant with the implementation of mitigation measures identified in the Final SEIR:

City of Morgan Hill
Resolution No. 26-XX

Air Quality, Greenhouse Gas Emissions, and Energy
Impact 4.1-6: Generate greenhouse gas (GHG) emissions, either directly or indirectly, that may have a significant impact on the environment, or conflict with an applicable plan, policy, or regulation adopted for the purpose of reducing the emissions of GHGs. With the implementation of Mitigation Measure 4.1-6, this impact would be reduced to less than cumulatively considerable.

SEIR 4.1-6 Prior to the approval of project improvement plans, the applicant shall implement the following measure:
 Consistent with BAAQMD’s Transportation criterion d., EV Capable parking spaces (including EV Capable parking
spaces with electric vehicle supply equipment [EVSE]) shall be installed throughout the project site at the ratio specified by the current CalGreen Tier 2 standards.

Compliance with the foregoing measure shall be ensured by the City of Morgan Hill Community Development Department.

Finding: According to the Bay Area Air Quality Management District’s (BAAQMD’s) thresholds of significance, a project must either include specific project design elements related to buildings and transportation or be consistent with a local GHG reduction strategy. Because the City’s Climate Action Plan (CAP) does not qualify as a local GHG reduction strategy under CEQA Guidelines Section 15183.5(b), the proposed project was evaluated for consistency with the BAAQMD’s Buildings and Transportation criteria. The proposed project would comply with BAAQMD’s Buildings criterion a., related to the prohibition of natural gas on-site, Buildings criterion b., related to the wasteful, inefficient, or unnecessary use of energy, and Transportation criterion c., related to vehicle miles traveled (VMT). However, the proposed project has the potential to conflict with Transportation criterion d., related to the provision of electric vehicle (EV) charging stations. Thus, while the proposed project would result in a reduction of operational GHG emissions as compared to the approved Lillian Commons Project, a previously unidentified cumulatively considerable and significant impact related to GHG emissions could occur as a result of a change in the regulatory setting (i.e., the adoption of new BAAQMD GHG thresholds) that has occurred since the 2020 IS/MND was adopted. The project would implement Mitigation Measure SEIR

4.1-6, which requires EV Capable parking spaces be installed throughout the project site at the ratio specified by the 2022 California Green Buildings Standards Code (CalGreen) Tier 2 standards. Implementation of Mitigation Measure SEIR 4.1-6 would ensure compliance with BAAQMD’s Transportation Criterion d. Therefore, this impact would be less than cumulatively considerable with adherence to Mitigation Measure SEIR 4.1-6.

City of Morgan Hill
Resolution No. 26-XX

Noise
Impact 4.2-1: Generation of a substantial temporary increase in ambient noise levels in the vicinity of the project in excess of standards established in the local general plan or noise ordinance, or applicable standards of other agencies. With the implementation of Mitigation Measure NOI-1.1, this impact would be reduced to less than significant.

NOI-1.1 Prior to issuance of a grading permit for Phase 1 of the proposed project, the project applicant shall prepare a Noise Construction Control Plan that includes, but is not necessarily limited to, the following construction best management control practices:
 Equipment and trucks used for construction shall use the best available noise control techniques (e.g., improved mufflers, equipment redesign, use of intake silencers, ducts, engine enclosures, and acoustically attenuating shields or shrouds).  Impact tools (e.g., jackhammers, pavement breakers, and rock drills) used for construction shall be hydraulically or electrically powered wherever possible to avoid noise
associated with compressed air exhaust from pneumatically powered tools.
 Stationary noise sources shall be located as far from noisesensitive receptors as possible, and they shall be muffled and enclosed within temporary sheds, incorporate insulation barriers, or include other measures.
 Construct temporary noise barriers, where feasible, to screen stationary noise-generating equipment. A temporary noise barrier with a height of eight feet would provide a minimum 6.0 dBA noise reduction for the residences to the north and to the west of the project site when construction activities occur at the ground level if the barrier is constructed in a manner that eliminates any cracks or gaps.
 Unnecessary idling of internal combustion engines should be strictly prohibited.
 Construction staging areas shall be established at locations that will create the greatest distance between the
construction-related noise sources and noise-sensitive
receptors nearest to the project site during all project construction. Locate material stockpiles,
maintenance/equipment staging, and parking areas, as far as feasible from residential receptors.

City of Morgan Hill
Resolution No. 26-XX

 Control noise from construction workers’ radios to a point where they are not audible at existing residences bordering the project site.
 Where feasible, temporary power service from local utility companies should be used instead of portable generators.  Locate cranes as far from noise-sensitive receptors as possible.
 During final grading, substitute graders for bulldozers, where feasible. Wheeled heavy equipment are quieter than track equipment and should be used where feasible.
 Substitute nail guns for manual hammering, where feasible.  Avoid the use of circular saws, miter/chop saws, and radial arm saws near the adjoining noise-sensitive receptors. Where feasible, shield saws with a solid screen with material having a minimum surface density of two pounds per square foot (e.g., such as 0.75-inch plywood).
 Maintain smooth vehicle pathways for trucks and equipment accessing the site and avoid local residential neighborhoods as much as possible.
 During interior construction, the exterior windows facing noise-sensitive receptors should be closed.
 During interior construction, locate noise-generating equipment within the building to break the line-of-sight to the adjoining receptors.
 The contractor(s) shall prepare a detailed construction schedule for major noise-generating construction activities.

The construction plan shall identify a procedure for
coordination with adjacent residential land uses so that construction activities can be scheduled to minimize noise disturbance.
 Designate a "disturbance coordinator" who would be
responsible for responding to any complaints about
construction noise. The disturbance coordinator will
determine the cause of the noise complaint (e.g., bad muffler, etc.) and will require that reasonable measures be
implemented to correct the problem. Conspicuously post the telephone number for the disturbance coordinator at the construction site and include in it the notice sent to neighbors regarding the construction schedule.

The Noise Construction Control Plan shall be submitted for review and approval of the Development Services Director and the Morgan

City of Morgan Hill
Resolution No. 26-XX

Hill Development Services Department.

Finding: According to the Noise and Vibration Assessment prepared for the proposed project by Illingworth & Rodkin, Inc. (I&R), construction noise levels would range from 27 to 78 A-weighted noise level (dBA) Leq at the existing off-site sensitive receptors (i.e., residences to the west and south of the project site). As such, the existing off-site sensitive receptors would be exposed to construction noise levels exceeding the 60 dBA Leq threshold, as established in the 2020 IS/MND, as well as noise levels exceeding 5.0 dBA Leq over existing noise levels. However, the existing off-site sensitive receptors would only be exposed to excess noise levels during Phase 1 of the proposed construction. In addition, the proposed project would not result in construction noise levels higher than those calculated for the Lillian Commons Project. Furthermore, the proposed project would exceed the applied thresholds for a shorter period of time relative to noise levels generated by construction of the approved Lillian Commons Project’s non-residential component, as the Noise Assessment prepared for the proposed project determined that construction of the previously approved non-residential uses would have exceeded the applicable noise level thresholds for an estimated 28 months, whereas the current project would exceed the noise level thresholds for an estimated total of 15 months. Mitigation Measure NOI-1.1 requires preparation and implementation of a Noise Construction Control Plan that incorporates noise control best management practices to address the predicted exceedance of the applicable construction noise level threshold, which will be reviewed by the City’s Development Services Director.

The Construction Control Plan would require all phases of construction associated with the proposed project to use reasonable noise reduction measures and comply with the City’s noise ordinance as required by General Plan Policy NOI-1.8. In addition, construction activities would be limited to between 7:00 AM and 8:00 PM on weekdays, and between 9:00 AM and 6:00 PM on Saturdays, as established by Morgan Hill Municipal Code Section 8.28.040. Construction activity would not be permitted on Sundays or federal holidays. Finally, the Construction Control Plan would also require all gasoline-powered construction equipment shall be equipped with an operating muffler or baffling systems as originally provided by the manufacturer(s). Implementation of Mitigation Measure NOI-1.1 would ensure that potential impacts related to the generation of a substantial temporary increase in ambient noise levels in the vicinity of the project in excess of standards established in the local general plan or noise ordinance, or applicable standards of other agencies, would be less than significant.

Impact 4.2-2: Generation of a substantial permanent increase in ambient noise levels in the vicinity of the project in excess of standards established in the local general plan or noise ordinance, or applicable standards of other agencies. With the implementation of Mitigation Measure NOI-2.1, this impact would be reduced to less than significant.

City of Morgan Hill
Resolution No. 26-XX

NOI-2.1 A qualified acoustical consultant shall be retained to review mechanical equipment systems during final design of the proposed project. The consultant shall review selected equipment, including the emergency generator and transformer, and determine specific noise reduction measures necessary to reduce noise to comply with the City’s noise level requirements. Prior to issuance of building permits for the project, the emergency generator and transformer must be selected and approved by the City of Morgan Hill Planning Division. The generator and transformer shall include adequate noise suppressing features to reduce impacts on surrounding land uses to meet the City’s exterior and interior noise level requirements of 60 dBA.

Finding: Operational noise levels associated with the proposed project at surrounding sensitive noise receptors are not anticipated to exceed the applicable noise thresholds, as set forth in Morgan Hill Municipal Code Section 18.76.090.

However, because the final design of the proposed project has not been prepared, the proposed project would still be subject to Mitigation Measure NOI-2.1. Mitigation Measure NOI-2.1 requires that a qualified acoustical consultant be retained to review the proposed mechanical equipment systems to determine if specific noisereduction measures are necessary to comply with the City’s noise regulations.

Implementation of Mitigation Measure NOI-2.1 would ensure that the final design and location of the proposed mechanical equipment systems are reviewed by a qualified acoustical consultant prior to completion of the project’s final design and that sensitive receptors adjacent to the project site are not subject to potential mechanical noise impacts. Therefore, impacts related to the generation of a substantial permanent increase in ambient noise levels in the vicinity of the project would be less than significant.

Transportation
Impact 4.3-3: Substantially increase hazards due to a geometric design feature (e.g., sharp curves or dangerous intersections) or incompatible uses (e.g., farm equipment) or result in inadequate emergency access. With the implementation of Mitigation Measure SEIR 4.3-3, this impact would be reduced to less than significant.

SEIR 4.3-3 Prior to the commencement of construction, a construction signage and traffic control plan shall be provided to the City’s Development Services Department for review and approval. The construction signage and traffic control plan shall include (but not be limited to) items such as:
 Guidance on the number and size of trucks per day entering and leaving the project site;

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 Identification of arrival/departure times that would minimize traffic impacts;
 Approved truck circulation patterns;
 Locations of staging areas;
 Locations of employee parking and methods to encourage carpooling and use of alternative transportation;
 Methods for partial and complete street closures (e.g., timing, signage, location, and duration restrictions);
 Criteria for use of flaggers and other traffic controls;  Preservation of safe and convenient passage for bicyclists and pedestrians through/around construction areas;
 Monitoring for roadbed damage and timing for completing repairs;
 Limitations on construction activity during peak/holiday weekends and special events;
 Preservation of emergency vehicle access;
 Coordination of construction activities with construction of other projects that occur concurrently in the City to minimize potential additive construction traffic disruptions, avoid duplicative efforts (e.g., multiple occurrences if similar signage), and maximize effectiveness of traffic mitigation measures (e.g., joint employee alternative transportation programs);
 Removing traffic obstructions during emergency evacuation events; and
 Signs providing a point of contact for nearby residents to obtain construction information, have questions answered, and convey complaints shall be posted in the vicinity of the project site.

The construction signage and traffic control plan shall be developed such that the following minimum set of performance standards is achieved throughout project construction. It is anticipated that additional performance standards would be developed once details of project construction are better known.
 All construction employees shall park in designated lots owned by the project applicant or on private lots otherwise arranged for by the project applicant.
 Roadways shall be maintained clear of debris (e.g., rocks) that could otherwise impede travel and impact public safety.

Finding: Construction activities associated with the proposed project would include the use of construction equipment, including on-site earth-moving vehicles,

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bulldozers, and other heavy machinery, as well as building materials delivery, and construction worker commutes. The transport of heavy construction equipment to the site, haul truck trips, and construction worker commutes could affect the local roadway network. Because a construction management plan detailing information related to construction routes and equipment staging is not available, the SEIR conservatively concluded that construction activities could include disruptions to the transportation network near the project site, such as along Juan Hernandez Drive, Barrett Avenue, and Tennant Avenue. As such, without proper planning of construction activities, construction traffic and potential street closures could interfere with existing roadway operations, including pedestrian, bicycle, and transit facilities, during the construction phase. Mitigation Measure SEIR 4.3-3 requires the approval of a construction signage and traffic control plan prior to commencement of project construction. Implementation of Mitigation Measure SEIR 4.3-3 would ensure the construction activities, construction traffic, and potential street closures associated with the proposed project would not interfere with existing roadway operations, including pedestrian, bicycle, and transit facilities. Therefore, approval of a construction signage and traffic control plan would ensure that the proposed project would not substantially increase hazards due to a geometric design feature or incompatible uses or result in inadequate emergency access, and that a less than significant impact would occur.

Initial Study
IV-a: Have a substantial adverse effect, either directly or through habitat modifications, on any species identified as a candidate, sensitive, or special status species in local or regional plans, policies, or regulations, or by the California Department of Fish and Wildlife or U.S. Fish and Wildlife Service. With the implementation of Mitigation Measures BIO-1.1 and BIO-1.2, this impact would be reduced to less than significant.

BIO-1.1 Construction shall be scheduled to avoid the nesting season to the extent feasible. If construction can be scheduled to occur between September 1st and January 31st (inclusive) to avoid the raptor nesting season, no impacts will be expected. If construction takes place between February 1st and August 31st, then pre-construction surveys for nesting birds shall be completed by a qualified ornithologist to ensure that no nests will be disturbed during project implementation.

Surveys shall be completed within 30 days of the on-set of site clearing or construction activities. During this survey, the ornithologist shall inspect all trees and other potential nesting habitats (e.g., trees, shrubs, buildings) on-site trees as well as all trees within 250 feet of the site for nests.

BIO-1.2 If an active nest is found sufficiently close to work areas to be disturbed by these activities, the ornithologist shall determine the

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extent of a disturbance-free buffer zone to be established around the nest (typically 250 feet for raptors and 50-100 feet for other species) that shall remain off limits to construction until the nesting season is over, to ensure that no nests of species protected by the Migratory Bird Treaty Act and California Fish and Wildlife Code will be disturbed during project implementation. A report indicating the result of the survey and any designated buffer zones shall be submitted to the satisfaction of the Development Services Director prior to issuance of a grading permit.

Finding: The 2020 IS/MND states that the project site is not located in an area containing any of the sensitive natural communities or special-status species identified in the City’s General Plan EIR. However, according to the Biological Resources Assessment (BRA) prepared by WRA Environmental Consultants, Inc. for the 2020 IS/MND, three (3) species of special-status birds have the potential to occur on-site, including white-tailed kite, loggerhead shrike, and grasshopper sparrow. In addition, the 2020 IS/MND determined that because the project would include the removal of sixteen (16) trees, the project could result in the removal of nesting or foraging habitat for nesting raptors and migratory birds. Because the proposed project would be within the same disturbance footprint evaluated in the 2020 IS/MND, impacts to special-status species associated with the proposed project could be significant. Although the proposed project would involve a greater intensity of development than was analyzed in the 2020 IS/MND, as well as greater building heights, the proposed project would not result in the removal of a greater number of trees or the disturbance of a larger area than was previously analyzed.

Nonetheless, to ensure that impacts to special-status bird species would be less than significant, the proposed project would be required to comply with Mitigation Measures BIO-1.1 and BIO-1.2 as included in the 2020 IS/MND. Mitigation Measure BIO-1.1 requires pre-construction surveys for nesting birds be conducted within 30 days of the on-set of construction activities should project construction take place between February 1st and August 31st. Additionally, Mitigation Measure BIO-1.2 requires the establishment of a disturbance free buffer zone around any active nest that could be disturbed by construction activities. Implementation of Mitigation Measures BIO-1.1 and BIO-1.2 would ensure that active nests belonging to raptors and migratory birds would not be disturbed by construction activities associated with the proposed project. Therefore, potential impacts to nesting raptors and migratory birds would be reduced to a less-than-significant level.

IV-e: Conflict with any local policies or ordinances protecting biological resources, such as a tree preservation policy or ordinance. With the implementation of Mitigation Measures BIO-5.1 and BIO-5.2, this impact would be reduced to less than significant.

BIO-5.1 To the extent feasible, activities shall avoid impacts to any protected trees. Avoidance is considered to be completely avoiding any work

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Resolution No. 26-XX

or staging under the dripline of trees. The boundary of the designated avoidance buffer shall be flagged or fenced prior to initial ground disturbance. If complete avoidance is not feasible, BIO-5.2 shall be implemented.

BIO-5.2 The project proponent shall comply with local ordinances and submit permit applications for removal, trimming, damage, or relocation of all trees covered by the City ordinance. Any trees to be removed shall require replacement at a two- to-one ratio on a comparable ratio of size. The replacement trees shall be planted on-site to the extent feasible and the project proponent shall comply with all other replacement requirements imposed by the City.

Finding: According to the 2020 IS/MND, the project site contains multiple trees that qualify for protection under the City of Morgan Hill Municipal Code, including fourteen (14) coast live oaks, one Peruvian pepper, and one Monterey pine, all of which would be removed for project construction. Because the proposed project would be within the same disturbance footprint evaluated in the 2020 IS/MND, development of the proposed project would result in significant impacts to the same protected trees. Therefore, to ensure that impacts related to conflicts with local policies or ordinances protecting biological resources would be less than significant, the proposed project would be required to comply with Mitigation Measures BIO-5.1 and BIO-5.2 as included in the 2020 IS/MND. Mitigation Measure BIO-5.1 requires the complete avoidance of any work or staging under the dripline of trees, and the designation of any avoidance buffer prior to initial ground disturbance. If complete avoidance of protected trees is not feasible, Mitigation Measure BIO-5.2 would require compliance with Chapter 12.32 of the City’s Municipal Code, which requires the project applicant to apply for a tree removal permit, and to plant replacement trees for those removed. Implementation of Mitigation Measures BIO-5.1 and BIO5.2 would ensure that construction activities avoid impacts to protected trees and would enforce compliance with the regulations and requirements provided under Chapter 12.32 of the Municipal Code. Therefore, the proposed project would not conflict with any local policies or ordinances protecting biological resources, such as a tree preservation policy or ordinance, and impacts related to protected trees would be less than significant.

D. MITIGATION MONITORING AND REPORTING PROGRAM
When making findings, the lead agency must adopt a reporting or monitoring program for the mitigation measures it has adopted or made a condition of project approval to mitigate or avoid significant effects on the environment. The City hereby adopts the MMRP for the project, included as Attachment A to these findings. The mitigation measures identified in the Final SEIR and adopted and incorporated into the project will be monitored pursuant to this program.

E. ALTERNATIVES

City of Morgan Hill
Resolution No. 26-XX

Pursuant to CEQA Guidelines Section 15126.6, the SEIR examined a range of reasonable alternatives to the proposed project that would attain most of the basic project objectives but would avoid or substantially lessen the significant adverse impacts. The City has reviewed the impacts associated with each alternative as compared with the proposed project, and has also considered each alternative’s feasibility, considering a range of economic, environmental, social, and legal factors. Overall, the City concludes that the No Project (No Build) Alternative would be the environmentally superior alternative. However, pursuant to CEQA Guidelines Section 15126.6 (e)(2), if the No Project (No Build) Alternative is determined to be environmentally superior, the EIR shall also identify an environmentally superior alternative among the other alternatives.

The alternatives considered by the City are summarized as follows.

No Project (No Build) Alternative: Under the No Project (No Build) Alternative, existing site conditions would be maintained, and the site would not be developed.

Impacts identified for the proposed project that would be less than significant with mitigation measures, including impacts related to air quality, greenhouse gas emissions, and energy, biological resources, noise, and transportation would be avoided under the No Project (No Build) Alternative. The No Project (No Build) Alternative is an environmentally superior alternative to the proposed project. Because the No Project (No Build) Alternative would not result in any new development on the site, the Alternative would avoid all environmental impacts of the project. The Alternative would not, however, meet any of the applicant’s project objectives.

Therefore, the No Project (No Build) Alternative is rejected.

No Project (Buildout Pursuant to Approved PD Master Plan) Alternative: The No Project (Buildout Pursuant to Approved PD Master Plan) Alternative assumes that the site would be developed pursuant to the currently approved uses set forth in the PD Master Plan, as evaluated by the 2020 IS/MND. Specifically, the project site would contain 124,500 sf of medical/commercial uses, including a 4,500-sf urgent care facility, a 10,000-sf medical building, a 100,000-sf medical office/hospital with 55 beds, a threestory parking structure with 500 spaces, and a 10,000-sf commercial retail/restaurant building. Because the City has already approved the General Plan Amendment, Zoning Amendment, PD Master Plan, and Tentative Parcel Map associated with the Lillian Commons Project, the No Project (Buildout Pursuant to the Approved PD Master Plan) Alternative would not be expected to require City approval of any further entitlements with the possible exception of Conditional Use Permits (CUPs) for uses requiring a CUP.

Unlike the approved Lillian Commons Project, the currently proposed amendment to the PD Master Plan is subject to review for consistency with BAAQMD’s updated Air Quality Guidelines and qualitative GHG emissions thresholds. Should the developer proceed with developing the approved uses consistent with the approved PD Master Plan, the developer would be required to comply with Mitigation Measure GHG-1.1 as written in the 2020 IS/MND. Compliance with Mitigation Measure GHG-1.1 would

City of Morgan Hill
Resolution No. 26-XX

ensure development under the Alternative is consistent with the regulations in effect at the time of the 2020 IS/MND, and the currently proposed project’s potential impact would not occur. Therefore, the impact related to air quality, GHG emissions, and energy could be reduced compared to the proposed project under the No Project (Buildout Pursuant to Approved PD Master Plan) Alternative.

In addition, the Noise Assessment prepared for the proposed project determined that construction of the previously approved non-residential uses would have exceeded the applicable noise level thresholds for an estimated 28 months, whereas the current project would exceed the noise level thresholds for an estimated total of 15 months.

Should the developer proceed with developing the No Project (Buildout Pursuant to Approved PD Master Plan) Alternative, the developer would be required to comply with Mitigation Measure NOI-1.1 as written in the 2020 IS/MND. Compliance with Mitigation Measure NOI-1.1 requires preparation and implementation of a Noise Construction Control Plan that incorporates noise control best management practices, which would ensure development under the Alternative would reduce any potentially significant impacts associated with construction noise to a less-than-significant level. Similar to the proposed project, the Alternative would involve the use of mechanical equipment that could exceed allowable ambient noise levels. Thus, Mitigation Measure NOI-2.1, as set forth in the 2020 IS/MND, would remain applicable under the Alternative.

Mitigation Measure NOI-2.1 would ensure that the final design and location of the proposed mechanical equipment systems are reviewed by a qualified acoustical consultant prior to completion of the project’s final design and that sensitive receptors adjacent to the project site are not subject to potential mechanical noise impacts. Given that the Alternative would exceed the applicable threshold for a longer period of time than the proposed project, impacts related to noise would be slightly greater under the Alternative as compared to the proposed project.

The SEIR determined that the No Project (Buildout Pursuant to Approved PD Master Plan) Alternative could result in similar daily on-site construction activities and associated temporary increase in construction vehicle traffic to area roadways as compared to the proposed project. However, out of an abundance of caution, the SEIR determined that the proposed project could result in a potentially significant impact and includes Mitigation Measure 4.3-3 requiring preparation and implementation of a construction signage and traffic control plan. Therefore, the impacts related to transportation could be fewer under the Alternative as compared to the proposed project.

The No Project (Buildout Pursuant to Approved PD Master Plan) Alternative would fully meet the project objectives, with the exception of Objective #2. Objective #2 specifies that because a hospital would be the last component of a medical campus to be developed, the existing approved 124,500 sf of space would not be large enough to accommodate a hospital footprint following the development of medical offices in earlier construction phases. Therefore, the No Project (Buildout Pursuant to Approved PD Master Plan) Alternative would not have the ability to be phased to meet existing needs

City of Morgan Hill
Resolution No. 26-XX

and scale up in size as demand increases, and Project Objective #2 would not be met.

As such, the Alternative would not be the environmentally superior alternative given the Alternative would increase the severity of impacts related to noise and would not satisfy all of the project objectives. Therefore, the No Project (Buildout Pursuant to Approved PD Master Plan) Alternative is rejected.

Reduced Size Alternative: The Reduced Size Alternative would include 225,000 sf of medical office uses, split between a four-story, 100,000-sf building, a three-story 75,000-sf building, and a two-story 50,000-sf building. The Reduced Size Alternative would retain the two existing medical buildings and parking lot located on Parcel D, thereby reducing the overall site acreage and disturbance area. The project’s footprint would be reduced by approximately 50,000 sf. The Alternative would still require a PD Master Plan Amendment to increase the maximum allowed medical office square footage from 124,500 sf to 225,000 sf, building coverage to 60 percent, medical office parking to one space per 250 sf, and to increase the maximum building height from 55 feet to 65 feet. Additionally, FAR would still be eliminated, assisted living facilities would still be added as a permitted use, and day care centers, farmers markets, residential care facilities, and skilled nursing facilities would still be changed from conditionally permitted to permitted uses.

Because the Reduced Size Alternative would involve a smaller area of disturbance and building envelope than the proposed project, the GHG emissions associated with the Alternative would be less than the proposed project. However, similar to the proposed project, the Reduced Size Alternative would conflict with BAAQMD’s Transportation criterion d., related to the provision of EV charging stations. Therefore, Mitigation Measure SEIR 4.1-6 would still be required under the Reduced Size Alternative.

Compliance with Mitigation Measure SEIR 4.1-6 would ensure EV Capable parking spaces are installed throughout the project site at the ratio specified by the current CalGreen Tier 2 standards. Although the Reduced Size Alternative would have the same potentially significant GHG impact as the proposed project, because the Alternative would result in a reduction of GHG emissions as compared to the proposed project, impacts related to air quality, GHG emissions, and energy would be fewer than the proposed project.

Because the Reduced Size Alternative would involve less building square footage as compared to the proposed project, the intensity of construction activities would be slightly reduced. Thus, noise related to construction associated with the Alternative could be slightly reduced as compared to the proposed project. However, because construction noise would still occur under the Alternative, construction of the Alternative could still result in the generation of a substantial temporary increase in ambient noise levels in the vicinity of the project. As such, implementation of Mitigation Measure NOI1.1 would still be required under the Alternative. In addition, although the Reduced Size Alternative would result in less square footage on a reduced project site, the proposed medical buildings would still feature emergency generator equipment and transformers.

As such, similar to the proposed project, the mechanical equipment at the medical

City of Morgan Hill
Resolution No. 26-XX

buildings could result in the generation of a substantial permanent increase in ambient noise levels in the vicinity of the project site. Therefore, the Reduced Size Alternative would still be subject to Mitigation Measure NOI-2.1 to ensure that a qualified acoustical consultant is retained to review the proposed mechanical equipment systems and to confirm if specific noise-reduction measures are necessary. Overall, the impacts identified for the Reduced Size Alternative related to noise would be similar to the proposed project.

Similar to the proposed project, the Reduced Size Alternative would temporarily add construction vehicle traffic to area roadways. During the construction phrase, construction traffic and potential street closures could interfere with existing roadway operations, including pedestrian, bicycle, and transit facilities. As such, Mitigation Measure 4.3-3, related to preparation and implementation of a construction signage and traffic control plan, would still be required under the Alternative. Because the Alternative would involve less square footage as compared to the proposed project, the intensity of construction activities, as well as the amount and overall duration of construction traffic, would be reduced. Therefore, impacts related to transportation could be fewer than the proposed project under the Alternative.

The Reduced Size Alternative would fully meet the project objectives, with the possible exception of Objective #2. Objective #2 specifies that because a hospital would be the last component of a medical campus to be developed, the existing approved 124,500 sf of space would not be large enough to accommodate a hospital footprint following the development of medical offices in earlier construction phases. Therefore, while the Reduced Size Alternative would have the ability to be phased to meet existing needs and scale up in size as demand increases, the flexibility to do so would be constrained due to the reduction in square footage by 50,000 sf. Nonetheless, the Alternative would fully meet six of the seven project objectives and could result in fewer impacts than the proposed project related to air quality, GHG emissions, and energy, and transportation, and would result in similar impacts as the proposed project related to noise. As such, the Reduced Size Alternative would be the environmentally superior alternative.

Although the Reduced Size Alternative would meet six of the seven project objectives, the Alternative would satisfy the objectives to a lesser extent than the proposed project.

Therefore, the Reduced Size Alternative is rejected.

F. RECIRCULATION NOT REQUIRED
No new or substantial changes to the SEIR were proposed as a result of the public comment process. The Final SEIR responds to comments provided on the Draft SEIR, and does not include any changes, clarifications or additions to the SEIR. The comments provided on the Draft SEIR did not address concerns related to any new significant impacts or substantial increases in the severity of any significant environmental impacts. Therefore, recirculation of the SEIR is not required.

G. RECORD OF PROCEEDINGS

City of Morgan Hill
Resolution No. 26-XX

Various documents and other materials constitute the record of proceedings upon which the City base their findings and decisions contained herein. Documents related to this proposed project are located in the City of Morgan Hill Development Services Department, 17575 Peak Avenue, Morgan Hill, California 95037.

H. SUBSTANTIAL EVIDENCE SUPPORTING FINDINGS
Substantial evidence supporting each and every finding made herein is contained in the Final SEIR and record of proceedings. Omission of reference in these findings to any evidence in the SEIR and/or record of proceedings is not intended to exclude that evidence as supporting these findings.

In making these findings, the City Council has relied upon the expertise of a variety of independent technical and professional consultants to the City, and the expertise of the City's Staff. The City Council has also carefully considered the evidence submitted by property owners and other interested agencies and individuals. To the extent that evidence consists of expert opinions that differ from the opinions of the City's outside consultants and City Staff, at most it represents a disagreement of experts, which is adequately reviewed in the SEIR. Based on its review, the City Council has determined that the opinions of its outside consultants and Staff are valid and are hereby accepted.

In some instances, the City Council has also relied on the expertise of other agencies who have provided comments on the Draft SEIR and other actions related to the project.

To the extent that alternatives or mitigation measures were proposed by other agencies or interested persons that differ from the mitigation adopted herein, the City Council specifically rejects these proposals based on the substantial evidence in the record supporting the mitigation adopted as sufficient and necessary to mitigate impacts to a less than significant level or to the level that the impacts can feasibly be mitigated.

City of Morgan Hill
Resolution No. 26-XX Page 24 of 36
ATTACHMENT "A"

MITIGATION MONITORING AND REPORTING PROGRAM
Rosewood/Morgan Hill Medical Campus Project
File Numbers: GPA2023-0002, AAE2022-0008, and
EA2022-0011
December 19, 2025

CITY OF MORGAN HILL

City of Morgan Hill
Resolution No. 26-XX Page 25 of 36Page | 25 File Nos. GPA2023-0002, AAE2022-0008, and EA2022-0011

PREFACE
Section 21081.6 of the California Environmental Quality Act (CEQA) requires a Lead Agency to adopt a Mitigation Monitoring and Reporting Program (MMRP) whenever it approves a project for which measures have been required to mitigate or avoid significant effects on the environment. The purpose of the monitoring and reporting program is to ensure compliance with the mitigation measures during project implementation.

The Initial Study/Mitigated Negative Declaration (IS/MND) and the Subsequent Environmental Impact Report (SEIR) prepared for the Rosewood/Morgan Hill Medical Campus Project concluded that the implementation of the project could result in significant effects on the environment and mitigation measures were incorporated into the proposed project or are required as a condition of project approval. This MMRP addresses those measures in terms of how and when they will be implemented.

This document does not discuss those subjects for which the IS/MND and SEIR concluded that the impacts from implementation of the project would be less than significant.

I, , the applicant, on behalf of , hereby agree to fully implement the Mitigation Measures described below which have been developed in conjunction with the preparation of an IS/MND and SEIR for my proposed project. I understand that these mitigation measures or substantially similar measures will be adopted as conditions of approval with my development permit request to avoid or significantly reduce potential environmental impacts to a less than significant level, where feasible.

Project Applicant’s Signature _____________________________________________ Date ___________________________________________________________

City of Morgan Hill
Resolution No. 26-XX Page 26 of 36
Rosewood/Morgan Hill Medical Campus Project
File Nos. GPA2023-0002, AAE2022-0008, and
EA2022-0011

MITIGATIONS MONITORING AND REPORTING PROGRAM
Timeframe and Responsibility
for Implementation Method of Compliance Oversight of Implementation AIR QUALITY, GREENHOUSE GAS EMISSIONS, AND ENERGY Impact 4.1-6: Generate GHG emissions, either directly or indirectly, that may have a significant impact on the environment, or conflict with an applicable plan, policy, or regulation adopted for the purpose of reducing the emissions of GHGs. (Less than Significant with Mitigation Incorporated) SEIR 4.1-6: Prior to the approval of project
improvement plans, the applicant shall implement the following measure:
 Consistent with BAAQMD’s
Transportation criterion d., EV Capable
parking spaces (including EV Capableparking spaces with electric vehicle supply equipment [EVSE]) shall be
installed throughout the project site at
the ratio specified by the current
CalGreen Tier 2 standards.

Compliance with the foregoing measure shall
be ensured by the City of Morgan Hill
Community Development Department.

To be implemented by the
project applicant prior to approval of project improvement plans.

All measures will be
required as part of the development permit. All measures will be printed on all construction documents, contracts, and project plans prior to issuance of any grading and/or building permits.

City of Morgan Hill
Development Services Department

CITY OF MORGAN HILL

City of Morgan Hill
Resolution No. 26-XX Page 27 of 36Page | 27 File Nos. GPA2023-0002, AAE2022-0008, and EA2022-0011

MITIGATIONS MONITORING AND REPORTING PROGRAM
Timeframe and Responsibility
for Implementation Method of Compliance Oversight of Implementation NOISEImpact 4.2-1: Generation of a substantial temporary increase in ambient noise levels in the vicinity of the project in excess of standards established in the local general plan or noise ordinance, or applicable standards of other agencies. (Less than Significant Impact with Mitigation Incorporated) NOI-1.1: Prior to issuance of a grading permit
for Phase 1 of the proposed project, the project applicant shall prepare a Noise Construction Control Plan that includes, but is not necessarily limited to, the following construction best management control practices:
 Equipment and trucks used for
construction shall use the best available noise control techniques (e.g., improved mufflers, equipment redesign, use of intake silencers, ducts, engine enclosures, and acoustically attenuating shields or shrouds).  Impact tools (e.g., jackhammers,
pavement breakers, and rock drills) used for construction shall be hydraulically or electrically powered wherever possible to avoid noise associated with compressed air To be implemented prior to
issuance of a grading permit.

All measures will be
required as part of the development permit. All measures will be printed on all construction documents, contracts, and project plans prior to issuance of any grading and/or building permits.

City of Morgan Hill
Development Services Department

City of Morgan Hill
Resolution No. 26-XX Page 28 of 36

MITIGATIONS MONITORING AND REPORTING PROGRAM
Timeframe and Responsibility
for Implementation Method of Compliance Oversight of Implementation exhaust from pneumatically powered tools.
 Stationary noise sources shall be
located as far from noise-sensitive receptors as possible, and they shall be muffled and enclosed within temporary sheds, incorporate insulation barriers, or include other measures.  Construct temporary noise barriers,
where feasible, to screen stationary noise-generating equipment. A temporary noise barrier with a height of eight (8) feet would provide a minimum 6.0 dBA noise reduction for the residences to the north and to the west of the project site when construction activities occur at the ground level if the barrier is constructed in a manner that eliminates any cracks or gaps.  Unnecessary idling of internal
combustion engines should be strictly prohibited.
 Construction staging areas shall be
established at locations that will create the greatest distance between the construction-related noise sources and noise-sensitive receptors nearest to the project site during all project construction. Locate material stockpiles, maintenance/equipment

City of Morgan Hill
Resolution No. 26-XX Page 29 of 36Page | 29 File Nos. GPA2023-0002, AAE2022-0008, and EA2022-0011

MITIGATIONS MONITORING AND REPORTING PROGRAM
Timeframe and Responsibility
for Implementation Method of Compliance Oversight of Implementation staging, and parking areas, as far as feasible from residential receptors.  Control noise from construction
workers’ radios to a point where they are not audible at existing residences bordering the project site.  Where feasible, temporary power
service from local utility companies should be used instead of portable generators.  Locate cranes as far from noisesensitive receptors as possible.  During final grading, where feasible, substitute graders for bulldozers. Wheeled heavy equipment are quieter than track equipment and should be used where feasible.  Substitute nail guns for manual
hammering, where feasible.
 Avoid the use of circular saws,
miter/chop saws, and radial arm saws near the adjoining noise-sensitive receptors. Where feasible, shield saws with a solid screen with material having a minimum surface density of two pounds per square foot (e.g., such as 0.75-inch plywood).  Maintain smooth vehicle pathways for
trucks and equipment accessing the

City of Morgan Hill
Resolution No. 26-XX Page 30 of 36

MITIGATIONS MONITORING AND REPORTING PROGRAM
Timeframe and Responsibility
for Implementation Method of Compliance Oversight of Implementation site and avoid local residential neighborhoods as much as possible.  During interior construction, the
exterior windows facing noisesensitive receptors should be closed.  During interior construction, locate
noise-generating equipment within the building to break the line-of-sight to the adjoining receptors.  The contractor(s) shall prepare a
detailed construction schedule for major noise-generating construction activities. The construction plan shall identify a procedure for coordination with adjacent residential land uses so that construction activities can be scheduled to minimize noise disturbance.  Designate a "disturbance coordinator"
who would be responsible for responding to any complaints about construction noise. The disturbance coordinator will determine the cause of the noise complaint (e.g., bad muffler, etc.) and will require that reasonable measures to be implemented to correct the problem. Conspicuously post the telephone number for the disturbance coordinator at the construction site and include in it the notice sent to

City of Morgan Hill
Resolution No. 26-XX Page 31 of 36Page | 31 File Nos. GPA2023-0002, AAE2022-0008, and EA2022-0011

MITIGATIONS MONITORING AND REPORTING PROGRAM
Timeframe and Responsibility
for Implementation Method of Compliance Oversight of Implementation neighbors regarding the construction schedule.

The Noise Construction Control Plan shall be
submitted for review and approval of the Development Services Director and the Morgan Hill Development Services Department.

Impact 4.2-2: Generation of a substantial permanent increase in ambient noise levels in the vicinity of the project in excess of standards established in the local general plan or noise ordinance, or applicable standards of other agencies. (Less than Significant Impact with Mitigation Incorporated) NOI-2.1: A qualified acoustical consultant
shall be retained to review mechanical equipment systems during final design of the proposed project. The consultant shall review selected equipment, including the emergency generator and transformer, and determine specific noise reduction measures necessary to reduce noise to comply with the City’s noise level requirements. Prior to issuance of building permits for the project, the emergency generator and transformer must be selected and approved by the City of Morgan Hill Planning Division. The generator and transformer shall include adequate noise suppressing features to reduce impacts on surrounding land uses to meet the City’s To be implemented prior to
approval of final design.

All measures will be
required as part of the development permit. All measures will be printed on all construction documents, contracts, and project plans prior to issuance of any grading and/or building permits.

City of Morgan Hill Planning
Division.

City of Morgan Hill
Resolution No. 26-XX Page 32 of 36

MITIGATIONS MONITORING AND REPORTING PROGRAM
Timeframe and Responsibility
for Implementation Method of Compliance Oversight of Implementation exterior and interior noise level requirements of 60 dBA.

TRANSPORTATIONImpact 4.3-3: Substantially increase hazards due to a geometric design feature (e.g., sharp curves or dangerous intersections) or incompatible uses (e.g., farm equipment) or result in inadequate emergency access. (Less than Significant Impact with Mitigation Incorporated) SEIR 4.3-3: Prior to the commencement of
construction, a construction signage and traffic control plan shall be provided to the City’s Development Services Department for review and approval. The construction signage and traffic control plan shall include (but not be limited to) items such as:
 Guidance on the number and size of
trucks per day entering and leaving the project site;
 Identification of arrival/departure times
that would minimize traffic impacts;
 Approved truck circulation patterns;  Locations of staging areas;  Locations of employee parking and methods to encourage carpooling and use of alternative transportation;  Methods for partial and complete
street closures (e.g., timing, signage, location, and duration restrictions);  Criteria for use of flaggers and other
traffic controls;
To be implemented prior to
commencement of construction.

All measures will be
required as part of the development permit. All measures will be printed on all construction documents, contracts, and project plans prior to issuance of any grading and/or building permits.

City of Morgan Hill
Development Services Department.

City of Morgan Hill
Resolution No. 26-XX Page 33 of 36Page | 33 File Nos. GPA2023-0002, AAE2022-0008, and EA2022-0011

MITIGATIONS MONITORING AND REPORTING PROGRAM
Timeframe and Responsibility
for Implementation Method of Compliance Oversight of Implementation  Preservation of safe and convenient
passage for bicyclists and pedestrians through/around construction areas;  Monitoring for roadbed damage and
timing for completing repairs;
 Limitations on construction activity
during peak/holiday weekends and special events;
 Preservation of emergency vehicle
access;
 Coordination of construction activities
with construction of other projects that occur concurrently in the City to minimize potential additive construction traffic disruptions, avoid duplicative efforts (e.g., multiple occurrences if similar signage), and maximize effectiveness of traffic mitigation measures (e.g., joint employee alternative transportation programs);  Removing traffic obstructions during
emergency evacuation events; and
 Signs providing a point of contact for
nearby residents to obtain construction information, have questions answered, and convey complaints shall be posted in the vicinity of the project site.

City of Morgan Hill
Resolution No. 26-XX Page 34 of 36

MITIGATIONS MONITORING AND REPORTING PROGRAM
Timeframe and Responsibility
for Implementation Method of Compliance Oversight of Implementation The construction signage and traffic control
plan shall be developed such that the following minimum set of performance standards is achieved throughout project construction. It is anticipated that additional performance standards would be developed once details of project construction are better known.  All construction employees shall park
in designated lots owned by the project applicant or on private lots otherwise arranged for by the project applicant.  Roadways shall be maintained clear of
debris (e.g., rocks) that could otherwise impede travel and impact public safety.

INITIAL STUDYIV: Biological Resources (Less than Significant Impact with Mitigation Incorporated) BIO-1.1: Construction shall be scheduled to avoid the nesting season to the extent feasible. If construction can be scheduled to occur between September 1st and January 31st (inclusive) to avoid the raptor nesting
season, no impacts will be expected. If construction takes place between February 1st and August 31st, then pre- construction surveys for nesting birds shall be completed
To be implemented within 30
days of the on-set of site clearing or construction activities, if construction activities take place between February 1st and August 31st.

All measures will be
required as part of the development permit. All measures will be printed on all construction documents, contracts, and project plans prior to issuance of any grading and/or building permits.

City of Morgan Hill
Development Services Department.

City of Morgan Hill
Resolution No. 26-XX Page 35 of 36Page | 35 File Nos. GPA2023-0002, AAE2022-0008, and EA2022-0011

MITIGATIONS MONITORING AND REPORTING PROGRAM
Timeframe and Responsibility
for Implementation Method of Compliance Oversight of Implementation by a qualified ornithologist to ensure that no nests will be disturbed during project implementation. Surveys shall be completed within 30 days of the on-set of site clearing or construction activities. During this survey, the ornithologist shall inspect all trees and other potential nesting habitats (e.g., trees, shrubs, buildings) on-site trees as well as all trees within 250 feet of the site for nests.

BIO-1.2: If an active nest is found sufficiently
close to work areas to be disturbed by these activities, the ornithologist shall determine the extent of a disturbance-free buffer zone to be established around the nest (typically 250 feet for raptors and 50-100 feet for other species) that shall remain off limits to construction until the nesting season is over, to ensure that no nests of species protected by the Migratory Bird Treaty Act and California Fish and Wildlife Code will be disturbed during project implementation. A report indicating the result of the survey and any designated buffer zones shall be submitted to the satisfaction of the Development Services Director prior to issuance of a grading permit.

To be implemented prior to
issuance of a grading permit, if an active nest is found.

All measures will be
required as part of the development permit. All measures will be printed on all construction documents, contracts, and project plans prior to issuance of any grading and/or building permits.

Development Services
Department.

City of Morgan Hill
Resolution No. 26-XX Page 36 of 36
Source: City of Morgan Hill. Rosewood/Morgan Hill Medical Campus Project Final SEIR. December 2025.

MITIGATIONS MONITORING AND REPORTING PROGRAM
Timeframe and Responsibility
for Implementation Method of Compliance Oversight of Implementation BIO-5.1: To the extent feasible, activities
shall avoid impacts to any protected trees. Avoidance is considered to be completely avoiding any work or staging under the dripline of trees. The boundary of the designated avoidance buffer shall be flagged or fenced prior to initial ground disturbance. If complete avoidance is not feasible, BIO-5.2 shall be implemented To be implemented prior to
initial ground disturbance.

All measures will be
required as part of the development permit. All measures will be printed on all construction documents, contracts, and project plans prior to issuance of any grading and/or building permits.

City of Morgan Hill
Development Services Department.

BIO-5.2: The project proponent shall comply
with local ordinances and submit permit applications for removal, trimming, damage, or relocation of all trees covered by the City ordinance. Any trees to be removed shall require replacement at a two- to-one ratio on a comparable ratio of size. The replacement trees shall be planted on-site to the extent feasible and the project proponent shall comply with all other replacement requirements imposed by the City.

To be implemented prior to
issuance of a grading permit.

All measures will be
required as part of the development permit. All measures will be printed on all construction documents, contracts, and project plans prior to issuance of any grading and/or building permits.

City of Morgan Hill
Development Services Department.

7 CITY COUNCIL STAFF REPORT
MEETING DATE: March 4, 2026
PREPARED BY:

Dat Nguyen, Finance Director
Christina Turner, City Manager
APPROVED BY: City Manager

CONTINUED DISCUSSION OF FISCAL SUSTAINABILITY

RECOMMENDATION(S)
Receive report and provide direction to staff regarding whether to pursue placement of a local tax measure on the 2026 ballot.

COUNCIL PRIORITIES, GOALS & STRATEGIES
City Council Ongoing Priorities
Preserving and Cultivating Public Trust
2024-2025 Strategic Priorities
Fiscal Sustainability
Community Engagement
REPORT NARRATIVE:

At the February 6, 2026 Council Goal Setting Workshop, staff presented the City’s General Fund budget update and presented results of the Balancing Act interactive budget tool to illustrate trade-offs between revenues and services. The tool is intended for community engagement and to inform Council policy discussions as the City prepares the upcoming biennial budget and financial forecast for the next several years. • Revenue Strategy: The City continues to face a structural imbalance driven by rising costs and constrained revenue growth. Staff requests direction on whether City Council wishes to explore placing a local revenue measure (e.g., sales tax or other general/special tax) before voters in 2026. To meet election requirements, the City Council would need to take action by early August 2026 in order to place a measure on the November 2026 ballot. The estimated cost to the City for placing a measure on the ballot is approximately $60,000. In practice, sufficient lead time, typically several months prior, is needed to engage residents, gather feedback and maximize understanding and garner support, conduct polling, draft and finalize the measure language, and prepare all materials for submission to the Santa Clara County Registrar of Voters.
• Expenditure Reductions: Staff will continue evaluating service levels and cost

7 containment strategies. During the preparation of the budget, staff intend to evaluate several opportunities for expenditure reductions as well as non-taxbased opportunities to generate revenue that offsets expenses.

Recommendations and options for implementing these strategies will be presented through the upcoming budget process. It is important to note that, in the absence of a significant new revenue stream, service level reductions in the mid to long-term may be required to maintain the City’s fiscal sustainability and adequate fund balance reserves.

COMMUNITY ENGAGEMENT:

Consult
This is to continue discussion of fiscal sustainability.

ALTERNATIVE ACTIONS:

The Council may look to provide staff with further direction on revenue enhancement and cost containment strategies.

PRIOR CITY COUNCIL AND COMMISSION ACTIONS:

This is to continue discussion of fiscal sustainability from the Council Goal Setting Workshop.

FISCAL AND RESOURCE IMPACT:

The preparation of the report is a part of the Finance workplan.

CEQA (California Environmental Quality Act):

Not a Project
Organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment.

Fiscal Sustainability
March 4, 2026

Capital Improvement
Program
2

3 • Review the guiding principles of the CIP planning process • Identify CIP Project Categories
• Discuss key projects/planning for each category
• Discuss new impacts and challenges to CIP planning
Capital Improvement Program (CIP) Planning

4 • Projects must be consistent with the goals of the General Plan • Projects included in an adopted Master Plan
• City Council priority
• Addressing a maintenance or deficiency issue
• Available revenues to pay for project
• Long term maintenance is considered
• Legal uses of funds
Guiding Principles

5 • Almost all Capital Project Funds are non-discretionary • Impact Fees drive a significant portion of new development, meaning in most cases funds cannot be used for ongoing maintenance • Grant funding is often difficult to obtain and may not be in alignment with City top priorities
Limitations

6 CIP Project Categories
Current Adopted Budget
Parks &
Recreation
Public
Facilities
Storm
Drainage
Streets and
Roads
Wastewate
r
Water

7 Water
Considerations
• Water System Master Plan to be updated this fiscal year Projects Underway
• East Dunne Reservoir Project
• Glen Ayre Reservoir Expansion (design)
• Water Well at Eagle View Drive
• Water Line Rehabilitation Projects
• Water Line Capacity Enhancement Projects
Future Needs
• Additional Water Wells for redundancy
• Water line capacity enhancements for improved fire flow • Expansion of existing reservoirs
• Replacement and renovation of pumps and reservoirs

8 Wastewater
Considerations
• Program is fully funded
Projects Underway
• Second Trunk Line to Treatment Plant (design)
• Treatment Plant Expansion (nearing completion)
• Annual Rehabilitation Projects
• Lift Station Renovation Projects
• Capacity Enhancement Projects
Future Needs
• Projects outlined in the Wastewater Master Plan

9 Streets and Roads
Consideration
• Funds are restricted for pavement rehabilitation
• Updates of transportation impact fee study
• Recent adoption of Comprehensive Safety Action Plan, and ADA Transition Plan nearing completion
• Full implementation of new plans requires additional funding • City will be applying for grants
Projects Underway
• Monterey Road grant funded improvements (design)
• Annual Pavement and Sidewalk Rehabilitation projects
• Intersection improvements
Future Needs
• Intersection improvements for congestion management
• Multi-modal safety projects
• Safe Routes to Schools projects
• Bridge repair projects

10 Storm Drainage
Consideration
• Limited remnant RDCS funds for renovation -
no programmed funding after depletion
• Storm Drain Master Plan to be completed
following completion of the Upper Llagas Flood
Control Protection Project
• State mandates on trash capture
Projects Underway
• Upper Llagas Flood Protection Project
• Fisher Basin Expansion
• Butterfield Multi-Use Basin (grant funded)
• State mandated trash capture implementation
Future Needs
• Minor local flooding improvements

11 Public Facilities
Consideration
• Very limited funding
• Internal borrowing to advance construction
Large Projects Underway/Complete
• Fire Station
• Police Department Expansion
• Solar Projects
• EV Charging (grant funded)
Future Needs
• Corporation Yard Expansion (with MHUSD)

12 Consideration
• Parks and Recreation Master Plan Update is needed/planned • Use of funds that support renovation when possible
• New facilities can increase operational costs
• Park and Recreation Commission recommendations
Large Projects Underway
• Butterfield Park
• Non-Profit Center
• Villa Mira Monte Expansion (design)
• Sports Facility Annexation Application
• Solar Systems
Future Needs
• New Parks
• El Toro Trail
• Recreation Facility Expansions/Renovations
Parks and Recreation

13 • ADA Transition Plan and Sidewalk
Assessment will present additional
costs
• New Bike and Pedestrian Safety
Project Needs - little to no funding
available
• Remnant RDCS Funds for storm
drainage, sidewalk renovation, and
park maintenance continue to be
depleted
Future Impacts to the CIP

Current Financial Landscape
14 • Due to strong fiscal oversight by City Council and budget management by staff, Morgan Hill has been recognized for being a good steward of resources
• City holds AAA issuer credit rating by S&P
• Current General Fund reserve at 47%
• One of safest communities in County and Pavement Condition Index (PCI) of 74

Current Financial Landscape
(cont’d)
15 • Recreation has one of the highest cost recovery rates and continues to improve • While budget challenges are not new, heightened by economic conditions (inflation, interest rates, economic uncertainty)
• Conservative spending, higher revenues than forecasted, and federal stimulus during COVID-19 pandemic delayed fiscal decline
• Ability to maintain robust services requires sustained General Fund revenue growth to meet increasing costs

Adopted Budget Principles
The City Council has adopted the following principles to guide the Sustainable Budget Strategy:
• Critical services should be maintained to the greatest extent possible. • Resources should be allocated to the highest priority services. • No City services or functions should be exempt from evaluation. • “Across the Board” approaches shall be avoided because they are not aligned with the Council’s and Community’s priorities.
• Reductions in service should position the City to take advantage of economic recovery. • Budget reductions should be ongoing and not simply “one time only.” • Council should commit to support employees during the transition, and assist those who may be adversely impacted.

Adopted Budget Principles (cont’d)
• Employees and their recognized bargaining units should be actively involved in developing options and implementing the transition.
• The City should continue to invest in building organizational capacity by supporting training and employee development.
• Community wide tax resources should be allocated first to support community wide services. • Special services designed for only a few should be paid for by user charges and fees. • Administrative and operational efficiencies should be maximized before pursuing new tax revenue.

Adopted Budget Principles (cont’d)
• Reserves and one-time revenues should be used first to invest in capital outlay items that could reduce long range operating costs and, thereafter, fund transition expenses. • New services should not be added nor existing services expanded unless they are highly valued by the Community and there is a willingness to pay for them.
• There should be regular monitoring of financial performance and opportunities to make mid-course corrections as warranted.
• City policies that may inhibit economic development, especially new retail development, should be reviewed regularly and modified.

Major Funds: Non-Discretionary
Development
Services Fund
• Provides planning, building and engineering services
Special Revenue
Funds
• Provides Housing and Environmental Services
Capital Project
Funds
• Funds infrastructure related projects for streets, parks, storm drainage and public facilities
Enterprise Funds
• Provides for Water and Wastewater Utilities’ Operations and Infrastructure Improvements 19

Major Funds – Discretionary & NonDiscretionary
General
Fund
• Public Safety
• Parks, Streets, and Recreation
• Maintenance Services
• Economic Development
• General Government and
20 Administration

General Fund Summary
21 FY 2025-26
• Adopted Budget: $256.0 million
• General Fund: $63.8 million
General Fund Discretionary Budget
• Net of restricted revenues $45.2 million (excludes service fees, grants, program donations, etc.)
• 78% Public Safety (Police and Fire)
• 8% General Government and Administration
• 3% Recreation and Community Services
• Remaining 11% Parks, Streets, Economic Development, Code Compliance, Community Funding, Infrastructure Planning, and other programs

General Fund Total Revenues
$63.8 million
22 $ 36.7
$ 9.5 57%
15%
$ 3.4
5%
$ 3.4
5%
$ 2.8
4%
$ 5.1
8%
$ 1.0
2%
$ 1.9
3%
Taxes Current Services Franchise Fees
Transfers Rentals & Interest Income Use of Reserves
Budget Savings Other
Primary Sources:
• Property Tax
• Sales Tax
• Hotel Tax
• Charges for services
(recreation fees &
business license fees)

Tax Revenue Per Capita
FY 2024-25
*Property tax amount includes Santa Clara County Central Fire District FY24-25 23 Morgan Hill
Gilroy
Los Altos Hills
Campbell
San Jose
Milpitas
Saratoga*
Sunnyvale
Los Altos
Mountain View
Santa Clara
Los Gatos*
Cupertino*
Monte Sereno*
Palo Alto
$ -
$ 500
$ 1,000
$ 1,500
$ 2,000
$ 2,500
$ 728

Why are we the lowest?!?!
Additional local taxes:
• Sales Tax
o Campbell, Los Gatos, Milpitas, and San Jose
• Utility User Tax
o Sunnyvale, Cupertino, Mountain View, Los Altos,
Gilroy, Palo Alto, and San Jose
• Low Property Tax (Prop 13 Base Year)
24

Economic Development Strategies
• Attract Revenue-Generating Users (Hotel, Auto, and
Retail)
• Support Tenanting of Industrial Buildings
• Assist Projects Through Entitlement and Construction
(Fee Agreements, Ombudsman Services)
• Continue to modernize Zoning and Municipal Code to
encourage new investment and development
• Business Assistance Services (PBID, TBID, Economic
Mobility, Small Business Support)

Revenue Measure Options
Revenue Option Estimated Annual
Revenue Considerations
General or Special Sales Tax  $2.9 million (1/4 cent) General: 50%+1 voter approval Special: 2/3 approval
General or Special Utility Users Tax  $5.2 million (at 5%) General: 50%+1 voter approval Special: 2/3 approval
Transient Occupancy Tax  $230K for every 1% increase 50%+1 voter approval Parcel Tax  $1.4 million (flat $100/parcel) 2/3 voter approval LAD  $1.4 million (flat $100/parcel) No majority protest CFD $1.4 million (flat $100/parcel) 2/3 voter approval
Business License Tax  $200K if double from existing 50%+1 voter approval

Deadline for Measure to be on the
Ballot
• Due to County’s Registrar Office
• General election: Early August (e.g., August 2026 or
August 2028), approximately $60,000
• Several months needed to start the process for
Community outreach, drafting resolutions, legal review, formatting, and submission of arguments and materials

General Fund Total Expenditures
$63.8 million
28 $ 36.6
57% $ 6.3
10%
$ 9.9
16%
$ 6.2
10%
$ 1.1
2%
$ 3.7
6%
Police & Fire Admin & General Support
Recreation & Community Services Street & Park Maint./CIP Economic Development Other
Primary Expenses:
• Police
• Fire
• Parks & Street
Maintenance
• Economic Development
• Recreation
• Support Services

General Fund Discretionary
Expenditures
$45.2 million
29 $ 35.4
78%
$ 3.7
8%
$ 1.4
3%
$ 1.9
4%
$ 1.1
2%
$ 1.7
4%
Police & Fire Admin & General Support
Recreation & Community Services Street & Park Maint./CIP Economic Development Other
excludes service fees, grants, program donations,
etc.

Steps Taken
• Economic Development Blueprint - adopted in 2017 and
re-affirmed in 2024, a long-term guide to land-use, policies, and strategies to support prosperity and quality of life • Revenue Growth - increased the Transient Occupancy Tax (TOT), created a Tourism and Business Improvement
District (TBID), established a Downtown Property-Based
Improvement District (PBID), Updated Development
Services Fee Schedule
• Business Development - modernized zoning rules to
remove barriers, and actively recruited new businesses to Morgan Hill 30

Steps Taken (cont’d)
• Continued Conservative Spending – helps protect
reserves
• Cost Savings – continued conservative spending,
strategically freezing vacant positions, and new solar
project to save about $0.5 million per year
• Future Obligations – Set-aside $8.2 million since FY20-21 to address unfunded general fund needs
o $2.6 million to Street CIP
o $2.5 million to Pension/OPEB
o $1.8 million for Public Safety Equipment
o $1.3 million for Park Maintenance 31

Service Prioritization
• Without additional revenue, it is nearly impossible to make a material impact without affecting core services:
o Recreation and Community Services: scaled-back
programming for youth and seniors, shortened operating
hours for non-fee-based facilities (Senior Center and
Teen Center), reduced volunteer coordination support,
reduced Commission support, and/or lower levels of
support for community partnerships
o Parks, Street, and Infrastructure: Deferred maintenance, reduced landscaping and parks upkeep, slower response
to street and facility repairs, decreased investment in long-term infrastructure sustainability

Service Prioritization (cont’d)
o General Government and Administration: Delayed service delivery, reduction in customer service responsiveness, hinder ability to implement Council initiatives and pursue grant funding opportunities, and decreased funding for
Community Promotions
o Public Safety (Police and Fire): longer emergency response, reduced staffing, decreased investigative capacity, and limits on proactive policing, fire prevention, and community
engagement programs

Community Engagement - Balancing Act
by Polco
• Online interactive budget simulation tool
with possible revenue options and potential
service changes
• Focuses only on the City’s General Fund
• Allows you to explore different scenarios,
weigh real tradeoffs, share your input on
what matters most
34

Balancing Act Feedback
Scenarios
Revenues:
• Property tax – parcel tax, Landscape/Lighting Assessment District (LLAD), Community Facilities District (CFD)
• Sales tax – ¼ cent increase
• Utility user tax – 2%, 3%, 4%, or 5%
• Hotel tax – additional 1% or 2%
Expenses:
• No Change to Moderate Impact and Major Impact
• Reduction to Police, Fire, Public Services, Administration and Support, and City Hall operations

Balancing Act – Expense Reduction
Scenarios
• Police
• Reduce or eliminate animal services and
participation in County Auto Theft Task Force
• Reduce Police staffing and eliminate Traffic Team
• Fire
• Reduce Fire engine staffing on one fire engine
• Close one fire station

Balancing Act – Expense Reduction
Scenarios (cont.)
• Administration and Support
• Eliminate PBID
• Eliminate some or all Community funding
• Reduce administration support
• Employee furlough and City Hall closure every
other Friday, subject to labor negotiations (reduce
employee work hours and result in a
corresponding reduction in pay for non-public
safety staff)

Balancing Act – Expense Reduction
Scenarios (cont.)
• Public Services
• Reduce maintenance in Downtown or close
Railroad Park and parking structure
• Reduce subsidies for Recreation programs
• Eliminate all Community Services program
funding
• Reduce most park maintenance and overall
upkeep
• Eliminate all playground operations
• Reduce maintenance for Streets, Storm Drain,
d PbliRiht f W

Revenue Strategies – Upcoming Budget
39 • Determine whether to pursue revenue measure
• Evaluate fee increases (non-tax)
• Implement Economic Development strategies
• Actively seek grant opportunities

Cost Saving Strategies – Upcoming Budget
40 • Review contractual service agreements for potential changes in scope/cost reductions
• Review supply budgets for opportunities for reductions • Evaluate cost savings and efficiencies of additional
agency partnerships
• Implement new solar project

Cost Saving Strategies – Upcoming Budget (cont’d)
41 • Continue to strategically freeze vacant positions
• Evaluate compensation and hours of part-time temporary teammates
• Consider and evaluate deferring maintenance and
equipment replacements when costs savings may be
available
• Continued conservative spending

Next Steps
• Determine timing of potential revenue measure
(November 2026 or November 2028)
• Town Hall meetings (March 25 and May 16)
• CIP Meetings:
o PRC – April 21
o Planning Commission – April 28
• Release Recommended Budget – May 1
• Budget Presentation – May 6
• Budget Workshop – May 20
• Budget Public Hearing/Adoption – June 2026
• Continue implementation of cost saving measures

Questions?
43

8 CITY COUNCIL STAFF REPORT
MEETING DATE: March 4, 2026
PREPARED BY:

Christina Turner, City Manager
APPROVED BY: City Manager

PROVIDE DIRECTION TO STAFF ON PROPOSED FUTURE COUNCIL

INITIATED AGENDA ITEM REGARDING BLIGHTED PROPERTIES

RECOMMENDATION(S)
Determine if the majority of the City Council wants the following item agendized at a future meeting for discussion:
• Develop a clear and enforceable “Blight” Policy.

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

Section 4.2 of City Council Policy 97-01 (Attachment 1) allows members of the City Council to request items be added to an upcoming City Council agenda by requesting an item during the “Future Council Initiated Agenda Items” section of the agenda. A City Council report will then be placed on an upcoming agenda for Council discussion and consideration.

On January 28, 2026, Mayor Turner requested the following for Council consideration (Attachment 2): A focused effort to establish a clear, enforceable definition of blight is essential to protecting neighborhood quality and supporting consistent property maintenance across the community. This agenda item proposes developing a comprehensive blight policy that outlines objective standards for upkeep, addresses deteriorated or unsafe conditions, and provides a fair, transparent framework for enforcement for residential, commercial, and industrial properties. By defining expectations for property maintenance, which may also include landscaping, structural integrity, debris removal, and overall appearance, we can enhance community pride and ensure equitable application of regulations. This policy will guide future code compliance efforts and strengthen the long term health and vitality of Morgan Hill’s neighborhoods.

Staff is seeking Council direction on whether to formally agendize this item for discussion. The anticipated level of effort is substantial. While "blight" refers to specific

8 conditions that are found in the California Health and Safety Code Section 33031, the context of the request implies a broader focus on deteriorated or nuisance properties in addition to blight. Addressing these issues will require coordination among multiple City Departments, including Development Services, Public Services, and Legal teammates.

The Morgan Hill Municipal Code (MHMC) currently has multiple sections that help address run-down or deteriorating properties. It covers items such as graffiti, signs, garbage service, and RV/boat parking. MHMC Chapter 15.25 is the Property Maintenance section. It is based on the 2021 International Property Maintenance Code.

This section provides minimum maintenance standards for premises and structures and covers structural integrity, habitation, and sanitation, aimed at protecting public health. It does not address items that some people may consider visually unpleasant.

The City's Code Compliance Division enforces portions of the Municipal Code that relate to blight. The Code Compliance Division consists of 2.0 FTE Code Compliance Officers. The team manages approximately 800 cases a year and has over 100 open cases at any given time. Most of these cases are created based on formal complaints received from the public. Due to this workload, Code Compliance currently only opens cases proactively for violations that may affect life and safety.

COMMUNITY ENGAGEMENT:

This report seeks direction from the City Council on whether or not to further agendize this topic for Council consideration.

ALTERNATIVE ACTIONS:

Not Applicable
PRIOR CITY COUNCIL AND COMMISSION ACTIONS:

On January 28, 2026, the Mayor requested this item be brought back for Council consideration.

FISCAL AND RESOURCE IMPACT:

There is no fiscal impact associated with seeking direction from the Council on this item.

CEQA (California Environmental Quality Act):

Not a Project
Organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment.

CITY OF MORGAN HILL

CITY COUNCIL POLICIES AND PROCEDURES
CP-97-01
SUBJECT: RULES FOR THE CONDUCT OF CITY COUNCIL

MEETINGS, PLACEMENT OF ITEMS ON THE AGENDA,

AND MATTERS TO BE RECONSIDERED
EFFECTIVE DATE: May 7, 1997
REVISED DATE: March 15, 2023, August 23, 2023, June 19, 2024 ORIGINATING DEPARTMENT: CITY MANAGER
SECTION 1 - SCOPE

1.1 These rules shall establish the procedures for the conduct of all meetings of the City Council of the City of Morgan Hill. The purpose of these rules is to provide procedures consistent with the Ralph M. Brown Act, establish procedures which will be convenient for the public, be fair to all members of the City Council, and contribute to the orderly conduct of City business.

SECTION 2 - MEETINGS

2.1 Open to Public: All meetings of the City Council, whether regular or special, shall be open to the public, unless a closed session is scheduled as authorized by law.

2.2 Regular Meetings: The City Council shall conduct its regular meetings at the time and place established by ordinance, if specified in the ordinance or resolution.

2.3 Review Status of Agenda at 9:00 p.m.: The City Council may review the agenda at 9:00 p.m. to determine if it will be able to conclude its business by 10:00 p.m. If, at 10:00 p.m., the City Council has not concluded its business, before continuing the meeting it shall review and discussthe status of the remaining agenda items and determine by majority vote whether to continue any remaining items to a future regular or special meeting, adjourn the meeting to another date and time, or extend the meeting beyond 10:00 p.m. as needed. The meeting may be extended beyond 10:00 p.m. one time. Additional extensions of time will be at the Mayor’s discretion.

2.4 Special Meetings/Workshops: A special meeting and/or workshop may be called at any time by the Mayor or Presiding Officer of the City Council or by three members of the City Council. Written notice of any such meeting must specify the purpose of the meeting.

Notice of the meeting must be made in accordance with the law.

2.5 Closed Sessions: The City Council may hold closed sessions during a regular or special meeting, or at any time authorized by law, to consider or hear any matter which is authorized by law. At times, Closed Sessions may have to be held in an order different than presented due to the timeliness of the matter, to save the City money when an outside attorney has been retained or due to the need for extra time to discuss and deliberate an DocuSign Envelope ID: 634E0FF1-7DF5-41DE-BEA4-907F0EE4B725

City Council Policy 97-01
Rules for the Conduct of City Council Meetings

important closed session item. Closed session items may be continued to the conclusion of the agenda.

2.6 Quorum: Three (3) members of the City Council shall constitute a quorum and shall be sufficient to transact business. If less than three Council members appear at a regular meeting, the Mayor, Mayor Pro Tempore in the absence of the Mayor, any member of the City Council, or in the absence of all Council members, the City Clerk or Deputy City Clerk shall adjourn the meeting to a stated day and hour.

2.7 Adjourned Meetings: The City Council may adjourn any regular, adjourned regular,special, or adjourned special meeting to a time and place specified in the order of adjournment and permitted by law.

SECTION 3 - POSTING NOTICE AND AGENDA

3.1 Posting of Notice and Agenda: For every regular or special meeting, the City Clerk or other authorized person, shall post a notice of the meeting specifying the time and place at which the meeting will be held and an agenda containing a brief description of all items of businessto be discussed at the meeting. The notice and agenda may be combined in a single document.
a. Posting for Regular Meetings: For any regular meeting of the City Council, the notice and agenda shall be posted no later than seventy-two (72) hours prior to the time set for the meeting consistent with all Brown Act requirements. b. Posting for Special Meetings: For any special meetings of the City Council, the notice and agenda shall be posted no later than twenty-four (24) hours prior to the time set for the meeting consistent with all Brown Act requirements.

3.2 Location of Posting: The notice and agenda shall be posted on the City’s website and in a place to which the public has unrestricted access during at least normal business hours and where the notice and agenda are not likely to be removed or obscured by other posted materials.

3.3 Availability of the Agenda to the Public: The agenda for any regular or special meeting shall be made available to the public as soon as is practical after delivery to the members of the City Council.

SECTION 4 - AGENDA CONTENTS

4.1 Description of Matters: All items of business to be discussed at a meeting of the City Council shall be briefly described on the agenda. The description of the item and the proposed action to be considered should be set forth as clearly as practical so that members of the public will know the nature of the action under review and consideration.

4.2 Placement of items on the agenda: The Mayor, City Manager, or City Attorney may place items on the agenda. Members of the City Council may request items to be added to an upcoming City Council agenda by requesting an item during the "Future Council Initiated Agenda Items" Section of the agenda. When a Future Council Initiated Agenda Item is requested, the Council Member making the request will send the City Manager a brief DocuSign Envelope ID: 634E0FF1-7DF5-41DE-BEA4-907F0EE4B725

City Council Policy 97-01
Rules for the Conduct of City Council Meetings

summary outlining the request and any relevant background. If the requested item is not included in the current Strategic Priorities Workplan, the team will bring forward the item at a future Council Meeting within 30-45 days of the request via a brief staff report, including the brief summary provided by the requesting Council Member. At that meeting, the City Council will review the request and determine if the majority of the City Council wants the items agendized at a future meeting for discussion.

4.3 Council shall not act or take a position on: Matters outside of the Morgan Hill City Council's subject matter jurisdiction, including foreign or international events. Appropriate subject matter jurisdiction includes agenda items directly related to Morgan Hill business, as well as County/regional items having a direct impact on the City (i.e. countywide emergency services or transportation).

4.4 Limitation to Act on Only Items on the Agenda: No action shall be taken by the City Council on any item not on the posted agenda, subject only to the exceptions listed below:
a. Upon a majority determination that an "emergency situation" (as defined by State Law) exists; and
b. Upon a determination by a 4/5 vote of the City Council that there is a need to take immediate action and that the need to take the action came to the attention of City officials subsequent to posting of the agenda.

4.5 Change in Order of Business: The Mayor or Presiding Officer may decide to take matters listed on the agenda out of the prescribed order unless a majority of members present object to this variation.

4.6 City Council Reports: On an alternating basis, at each Regular City Council meeting, with a time limit of three minutes, a Council Member has the opportunity to share with the Council and community any pertinent updates or information in regard to their appointments to outside agencies, upcoming events, or relevant City business. These are non-action items.

4.7 City Manager Report: These are updates on current City activities, reports on issues raised at previous Council meetings, or recognitions. These are non-action items.

4.8 City Attorney Report: These are updates on current City activities, reports on issues raised at previous Council meetings, or reportable actions of the City Council in Closed Sessions and/or current litigation. These are non-action items.

4.9 Other Reports: These are pertinent updates or information on upcoming activities or events relevant to City business with a time limit of one minute. These are non-action items.

4.10 Public Comment for items not on the agenda: This refers to those matters not scheduled on the agenda where a member of the public wants to address a matter of importance to the City Council. Since the matter is not on the agenda, no action by Council can be taken. If a member of Council so desires, the matter can be placed on the agenda of a future Council meeting for review and consideration.

4.11 Consent Calendar: These are items of a routine or generally uncontested nature. Any member of the Council or member of the public may request to have an item pulled from the DocuSign Envelope ID: 634E0FF1-7DF5-41DE-BEA4-907F0EE4B725

City Council Policy 97-01
Rules for the Conduct of City Council Meetings

consent calendar and acted on individually by the Council. Items pulled will be discussed after action is taken on the balance of the consent calendar. The Mayor shall decide if the items are heard before or after moving on to public hearing and other business items.

4.12 Public Hearings: These are matters that are duly noticed and published in a newspaper of general circulation and where required by law, written notice is given to the affected residents who have the opportunity to speak in favor or against a matter or ask questions about the matter.

4.13 Other Business: These are other matters of City business which are not appropriately placed on the consent calendar and do not require published notices and require Council action and direction.

4.14 Future Business: These are items that members of the City Council wish to discuss to potentially take action on or have placed on future agendas.

SECTION 5. ORDER OF BUSINESS

5.1 The order of business at meetings of the City Council shall be as follows:
a. CALL TO ORDER
b. ROLL CALL ATTENDANCE
c. DECLARATION OF POSTING AGENDA
d. WORKSHOP (if needed; 5:00-6:00 p.m., or as deemed appropriate) e. CLOSED SESSION (if needed; 5:00-6:00 p.m., or as deemed appropriate) f. SILENT INVOCATION
g. PLEDGE OF ALLEGIANCE
h. PRESENTATIONS
i. PROCLAMATIONS
j. RECOGNITIONS
k. CITY COUNCIL REPORTS
l. CITY MANAGER’S REPORT
m. CITY ATTORNEY’S REPORT
n. OTHER REPORTS
o. PUBLIC COMMENT FOR ITEMS NOT ON THE AGENDA
p. ADOPTION OF AGENDA
q. CONSENT CALENDAR
DocuSign Envelope ID: 634E0FF1-7DF5-41DE-BEA4-907F0EE4B725

City Council Policy 97-01
Rules for the Conduct of City Council Meetings

r. PUBLIC HEARINGS
s. OTHER BUSINESS
t. FUTURE COUNCIL INITIATED AGENDA ITEMS
u. CLOSED SESSION
v. ADJOURNMENT
SECTION 6. PUBLIC COMMENT

6.1 Public Comment: Persons present at meetings of the City Council may comment on individual items on the agenda at the time the items are scheduled to be heard. In addition, comments may be offered on items not on the agenda under that portion of the agenda. In accordance with State law, matters not scheduled on the agenda cannot be acted upon by the City Council, but items raised by the public during public comment may be referred to a future City Council agenda at the request of the Mayor or City Council.

6.2 Limitations: The public comment period may be 3 minutes for items on the agenda or items not listed on the agenda. Speakers are called in the order the speaker cards are submitted.

Project applicants or appellants will be allowed more than the designated 3 minutes in accordance with City Council Policy 03-01. Consistent with this policy, the Mayor or Presiding Officer may recall an applicant or appellant to address questions after the public comment is heard. In addition, applicants will be given time at the end of the public hearing to address any questions or comments.

The Mayor or Presiding Officer may allow speakers who wish to speak under public comment for items not on the agenda to concede a portion of their time, specifically, one speaker may concede a portion of their time to one other speaker. For all other business items, the Mayor or Presiding Officer may allow speakers more time and/or allow speakers to concede a portion of their time to a designated speaker of a group, specifically up to two speakers may concede their time to one speaker, unless a majority of the City Council objects. Speakers that wish to designate a group speaker shall notify the City Clerk before discussion on the item begins. Additionally, any speaker that concedes their time must be present at that City Council meeting. Speaker who would like to share documents or presentations may do so by submitting said document to the City Clerk by noon on the day of the City Council Meeting. Speaker may not share videos or presentations with videos embedded within them.

6.3 Procedure: To address the City Council, each speaker is requested to fill out a Speaker Card and turn it in to the City Clerk before discussion on the agenda item begins. The speaker is requested to provide their name, contact information, and the subject(s) upon which the speaker wishes to address the City Council. Speakers who do not wish to provide their name should provide an alternative designation so that they can be called to speak by the City Clerk.

Public comment may be provided in writing for items on the agenda, as well as for items not on the agenda. Public comment in writing may be submitted via email to [email protected] or by mail to the City Clerk at 17575 Peak Avenue, DocuSign Envelope ID: 634E0FF1-7DF5-41DE-BEA4-907F0EE4B725

City Council Policy 97-01
Rules for the Conduct of City Council Meetings

Morgan Hill, CA 95037. Please email your comments to the City Clerk no later than 3:00 p.m. on Tuesday (the day before the City Council meeting) for your comments to be submitted to the members of the City Council with sufficient time to review the comments.

You may continue to provide written comments up to noon on Wednesday (the day of the meeting although Council Members may not have sufficient time to review them. Public comments submitted to the City Clerk after noon the day of the meeting will be provided to the City Council as time allows.

Written comments WILL NOT be read aloud during the City Council Meeting. Please note that written comments are posted on the City’s website, so do not include any personal information you do not want to be posted on the web.

SECTION 7. PROCEDURES FOR THE CONDUCT OF MEETINGS

7.1 Role of the Mayor/Presiding Officer:
a. The Presiding Officer of the City Council, who shall be the Mayor or in the Mayor's absence shall be the Mayor Pro Tempore, or in their absence any other designated member of the City Council, shall be responsible for maintaining the order and decorum of meetings. It shall be the duty and responsibility of the Presiding Officer to ensure that the rules of operation and decorum contained herein are observed. The Presiding Officer shall maintain control of communication between Council Members and between the Council, staff, and public.
b. Communication with Council Members:

1. Council Members should request the floor from the Presiding Officer before speaking.

2. When one member of the Council has the floor and is speaking, other Council Members shall not interrupt or otherwise disturb the speaker.

3. During both questions, when one Council Member has the floor, they are limited to 5 minutes. During discussion, the Mayor and Council Members as a whole are limited to 15 minutes. The time limit may be extended at the Mayor’s discretion.

4. With the concurrence of the Mayor, a Council Member holding the floor may address a question to another Council Member. The Council Member being questioned may or may not respond while the floor is still held by the Council Member asking the question. The reply shall be limited to the question asked. c. The Mayor or Presiding Officer may declare that an item within the meeting will be conducted in “workshop” format, which means that the procedures described in section 7.1B do not strictly apply. This is to allow for a more open discussion without strict formalities. The Mayor or Presiding Officer may end the workshop format for the item at his/her discretion.
d. Communication with Members of the Public Addressing the Council DocuSign Envelope ID: 634E0FF1-7DF5-41DE-BEA4-907F0EE4B725

City Council Policy 97-01
Rules for the Conduct of City Council Meetings

1. The Mayor or Presiding Officer shall open the floor for public testimony as appropriate.

2. After a witness or subject matter expert has addressed the City Council during public comment, Council members may only ask questions of witnesses or subject matter experts. Such questions should be directed to the person through the Presiding Officer unless the Presiding Officer grants the Council Member permission to directly question the person.

3. Staff members, through the City Manager, shall be a resource to the City Council to answer questions arising during discussions between Council Members and between Council Members and members of the public.

Communications in this regard shall be through the Presiding Officer.

4. Members of the public shall direct their questions and comments through the Presiding Officer.

7.2 Rules of Order: The City Council adopts no specific rules of order except those listed herein. The City Council shall refer to Rosenberg’s Rules of Order (available at https://www.cacities.org/UploadedFiles/LeagueInternet/77/77d4ee2b-c0bc-4ec2-881b42ccdbbe73c9.pdf) as a guide for the conduct of meetings. The guideline regarding not requiring seconds for governmental bodies' motions, resolutions or ordinances is not adopted as the rule in the City. The Mayor or Presiding Officer has the discretion to impose reasonable rules at any particular meeting based upon facts and circumstances found at any particular meeting. These latter rules will be followed unless objected to by a majority of the City Council members present.

7.3 Motions: The Mayor or any member of the City Council may bring a matter of business on the agenda before the Council by making a motion. Before the matter can be considered or debated it must be seconded. Once the motion has been properly made and seconded, the Presiding Officer shall open the matter for full debate offering the first opportunity to debate to the moving party and, thereafter, to any Council Member recognized by the Mayor or Presiding Officer. Debate shall be closed upon consent of a majority of the Council.

7.4 Reconsideration: Immediately after a vote on a matter, any member of the City Council may request to have his/her vote changed on a matter before the Council moves on to the next item. Such a request will be granted by the Mayor or Presiding Officer unless a majority of the Council objects.

A matter may be reconsidered by the City Council if a member on the prevailing side of the vote requests reconsideration. Such a motion may be made at a meeting where such action is taken or at a subsequent meeting of the Council, however, nothing in this policy precludes the majority of members of the City Council from requesting reconsideration of any item.

7.5 Debate:
a. The discussions and deliberations at meetings of the City Council are to secure the informed judgement of Council members on proposals submitted for decision. This DocuSign Envelope ID: 634E0FF1-7DF5-41DE-BEA4-907F0EE4B725

City Council Policy 97-01
Rules for the Conduct of City Council Meetings

purpose is best served by the exchange of thought through discussion and debate.

Debate is regulated by these rules in order to assure every member a reasonable and equal opportunity to be heard.
b. Obtaining the Floor for Debate:

As soon as a debatable motion has been stated to the Council by the Mayor or Presiding Officer, any member of the Council has a right to discuss it after obtaining the floor. The member obtains the floor by seeking recognition from the Mayor or Presiding Officer. A member who has been recognized is entitled to be heard so long as he/she observes the rules of debate.
c. Speaking More Than Once:

To encourage the full participation of all members of the Council, no member or members shall be permitted to monopolize the discussion of the question. If a Council member has already spoken and other members wish to speak, the latter members should be recognized in preference to the member who has already spoken.

However, if no other members seek recognition, the Mayor or Presiding Officer may recognize the member who has already spoken.
d. Relevancy of Debate:

All discussion must be relevant to the motion before the City Council. A member is given the floor only for the purpose of discussing the pending question; discussion which departs is out of order. The Mayor or Presiding Officer should then direct the speaker to limit discussion to the question before the City Council.

A motion-its nature or consequences-may be attacked vigorously. But it is never permissible to attack the motives, character, or personality of a member either directly or by innuendo or implication. It is the duty of the Mayor or Presiding Officer instantly to stop any member who engages in personal attacks. It is the motion, not its proposer, that is the subject of debate. Meetings must discuss measures and ideas, not people.

Arguments, for or against a measure, should be stated as concisely as possible.

Debate must be fundamentally impersonal. All discussion is addressed to the Mayor or Presiding Officer and must never be directed to any individual. e. Mayor’s Duties During Debate:

The Mayor or Presiding Officer has the responsibility of controlling and expediting debate. A Council member who has been recognized to speak on a question has a right to the undivided attention of the Council.

It is the duty of the Mayor or Presiding Officer to keep the subject clearly before the members, to rule out irrelevant discussion, and to restate the question whenever necessary.

DocuSign Envelope ID: 634E0FF1-7DF5-41DE-BEA4-907F0EE4B725

City Council Policy 97-01
Rules for the Conduct of City Council Meetings

SECTION 8. DECORUM

8.1 Council Members: Members of the City Council value and recognize the importance of the trust invested to them by the public to accomplish the business of the City. Council Members shall accord the utmost courtesy to each other, to City employees, and to the public appearing before the City Council.

8.2 City Employees: Members of City staff shall observe the same rules of order and decorum applicable to the City Council. City staff shall act at all times in a business and professional manner towards Council Members and members of the public.

8.3 Public: Members of the public attending City Council meetings shall observe the same rules of order and decorum applicable to the City Council.

8.4 Noise in the Chamber: Noise emanating from the audience within the Council Chamber or lobby area, which disrupts City Council meetings, shall not be permitted.

8.5 Sergeant-at-Arms: The Chief of Police, or his/her designated representative shall be exofficio Sergeant-at-Arms of the City Council.

SECTION 9. VIOLATIONS OF PROCEDURES

9.1 Nothing in these policies and procedures shall invalidate a properly noticed and acted upon action of the City Council in accordance with State Law.

This policy shall remain in effect until modified by the City Council.

APPROVED:
_______________________________

MARK TURNER, MAYOR
DocuSign Envelope ID: 634E0FF1-7DF5-41DE-BEA4-907F0EE4B725

Develop a “Blight” Policy
A focused effort to establish a clear, enforceable definition of blight is essential to protecting neighborhood quality and supporting consistent property maintenance across the community. This agenda item proposes developing a comprehensive blight policy that outlines objective standards for upkeep, addresses deteriorated or unsafe conditions, and provides a fair, transparent framework for enforcement for residential, commercial, and industrial properties. By defining expectations for property maintenance, which may also include landscaping, structural integrity, debris removal, and overall appearance, we can enhance community pride and ensure equitable application of regulations. This policy will guide future code compliance efforts and strengthen the long-term health and vitality of Morgan Hill’s neighborhoods