Morgan Hill City Council
August 26, 2026

City Council
Special/Regular Meeting Agenda
Mark Turner - Mayor
Marilyn Librers - Mayor Pro Tem
Soraida Iwanaga - Council Member
Yvonne Martínez Beltrán - Council Member
Miriam Vega - Council Member
Wednesday, August 26, 2026
5:30 p.m.

Council Chamber Building
17555 Peak Avenue, Morgan Hill, CA 95037
Morgan Hill City Council meetings are held in person. Members of the public may attend in person or participate remotely through Zoom or by telephone. Information about how to observe and participate in the meeting is provided below.

MEETING PARTICIPATION
Language Interpretation / Interpretación de idiomas
Live digital language interpretation is available. To access the interpretation during the meeting, go to:
https://live.pocketalk.com/guest/S71BBUiWwiqXh3sPBf9Bfs2Ey4OYY9zgv8vZB5 or scan the QR code below:

Tenemos Interpretación digital en vivo. Para usar la interpretación durante la reunión, visite:
https://live.pocketalk.com/guest/S71BBUiWwiqXh3sPBf9Bfs2Ey4OYY9zgv8vZB5 o escanee el código QR a continuación:

You can use a headset on your phone for audio or read the transcript on your device.

August 26, 2026
2 Tablets and disposable headphones will be provided in person during the meeting to those who do not have their own devices.

Puede usar audífonos en su celular para escuchar el audio o leer la transcripción.

Durante la reunión, se prestarán tabletas y audífonos desechables para las personas que no tengan su propio aparato.

Members of the public who need interpretation services or plan to bring an interpreter may request assistance from the City. Assistance may include coordinating interpretation services, arranging space for an interpreter, allowing additional time for interpretation, or accommodating personal interpretation equipment or services. Contact the City Clerk’s Office at (408) 779-7259 or by email at [email protected] at least 72 hours before the meeting. Requests received with less than 72 hours’ notice will be accommodated when reasonably possible, but assistance cannot be guaranteed.

Las personas que necesiten servicios de interpretación o que piensen traer a un intérprete pueden pedir ayuda a la Ciudad. La ayuda puede incluir coordinar servicios de interpretación, preparar un espacio para el intérprete, permitir más tiempo para la interpretación o permitir el uso de equipos o servicios personales de interpretación.

Comuníquese con la Oficina de la Secretaria Municipal al (408) 779-7259 o a [email protected] por lo menos 72 horas antes de la reunión. Las solicitudes recibidas con menos de 72 horas de anticipación se atenderán cuando sea posible, pero no se puede garantizar la ayuda.

Remote Participation
Members of the public may attend, observe, and participate in the meeting remotely through Zoom or by telephone. Meetings are also livestreamed on the City’s YouTube page. Automatic captions will be enabled in Zoom.

If a disruption of the City-provided remote access service prevents members of the public from attending or observing the meeting remotely, the City will follow its adopted disruption policy and the Ralph M. Brown Act. The City is not responsible for technical difficulties caused by a participant’s equipment, internet connection, telephone service, or other circumstances outside the City’s control.

To participate through Zoom, use the following link:
https://bit.ly/MHCityCouncilMeeting
Zoom participants should use the latest version of Zoom. Participants may be required to update Zoom before joining the meeting.

To participate by telephone, call (669) 900-9128 and enter webinar ID 873 3200 8380#.

Dial *9 to raise your hand. When called upon, dial *6 to unmute. Speakers may have up to three minutes.

PUBLIC COMMENT

August 26, 2026
3 Members of the public may provide oral public comment in person or remotely during the meeting. Written comments may be submitted before the meeting. Remote participants will receive the same speaking time as in-person participants.

Each speaker may have up to three minutes per item. If many people wish to speak about an item, the Mayor may reduce the speaking time for each speaker to accommodate additional speakers and maintain the orderly flow of the meeting.

Public comment will first be heard from participants attending in person who submitted speaker cards. The City will then call on Zoom participants who have raised their hands.

After all speakers have been heard, the public comment period for that item will close.

Remote participants may comment on all agenda items for which public comment is permitted. During regular meetings, remote participants may also comment during the general public comment period on matters within the City Council’s jurisdiction that are not listed on the agenda.

Written public comment may be submitted to the City Clerk:
• In person at the City Council Meeting;
• Via email to [email protected]; or
• Hand-delivered or mailed to the City Clerk at 17575 Peak Avenue, Morgan Hill, CA 95037
Please email comments no later than 3:00 p.m. the day before the meeting, so the City Council has time to review them. Comments may be submitted until noon on the day of the meeting, but Council Members may not have time to review them before the meeting. Comments received after noon on the day of the meeting will be provided to the City Council as time allows.

Written comments will not be read aloud during the meeting. They will be provided to the City Council, included in the meeting record, and posted on the City’s website. Do not include personal information that you do not want published. Communications sent to the City Council are public records and may be disclosed under the California Public Records Act and the Ralph M. Brown Act unless exempt from disclosure under applicable law. Written comments will generally be posted as submitted.

AMERICANS WITH DISABILITIES ACT (ADA)
In compliance with the Americans with Disabilities Act, a person with a disability may request a disability-related modification, accommodation, auxiliary aid, or service needed to participate in the meeting. Contact the City Clerk’s Office at (408) 779-7259 or by email at [email protected] as early as possible, preferably at least two full business days before the meeting. Requests received with less notice will be accommodated when reasonably possible, but assistance cannot be guaranteed.

August 26, 2026
4 SPECIAL/REGULAR MEETING
A special meeting of the City Council is called at 5:30 p.m. for the purpose of conducting a closed session.

SPECIAL MEETING
5:30 p.m. Closed Session

CALL TO ORDER

ROLL CALL ATTENDANCE

DECLARATION OF POSTING AGENDA

SILENT INVOCATION

PLEDGE OF ALLEGIANCE

CLOSED SESSION

OPPORTUNITY FOR PUBLIC COMMENT ON CLOSED SESSION

ADJOURN TO CLOSED SESSION
CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION
[Government Code section 54956.9(d)(4)]
Initiation of Litigation
One case

REGULAR MEETING
6:00 p.m.

PUBLIC COMMENT FOR ITEMS NOT ON THE AGENDA
This opportunity for public comment is for items that are not on the agenda. If you would like to make comments on an item that is on the agenda, please wait until we get to that item to offer your comments. Members of the public are entitled to address the City Council concerning any item within the Morgan Hill City Council’s subject matter jurisdiction. Public comments are limited to no more than three minutes. Except for certain specific exceptions, the City Council is prohibited from discussing or taking action on any item not appearing on the posted agenda. Public comment is intended

August 26, 2026
5 for comments. Questions posed during public comment are not generally answered. If you have questions, please send them to the City Clerk at [email protected] to receive a response. (See additional noticing at the end of this agenda)

ADOPTION OF AGENDA

CONSENT

1. AUTHORIZE THE CITY MANAGER TO EXECUTE AND ADMINISTER AN

AMENDMENT TO THE AGREEMENT WITH THE COUNTY OF SANTA

CLARA FOR SOUTH COUNTY YOUTH TASK FORCE FUNDING
Recommendation:

Authorize the City Manager to further execute and administer an amendment to service agreement with the Santa Clara County District Attorney's Office to receive and administer grant funding in support of the South County Youth Task Force.

OTHER BUSINESS

2. CONSIDERATION TO APPROVE AN INTERIM URGENCY ORDINANCE IMPOSING A 45-DAY TEMPORARY MORATORIUM ON THE PROCESSING

AND APPROVAL OF NEW LAND USE APPLICATIONS FOR FREE

STANDING DATA CENTERS AND GRID-SCALE BATTERY ENERGY

STORAGE SYSTEMS (BESS) WITHIN THE CITY LIMITS DURING THE

CITY'S REVIEW AND ADOPTION OF REGULATIONS FOR SUCH USES Recommendation:

1. Determine the adoption of this Urgency Ordinance is exempt from California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines Section 15061(b)(3);

2. Introduce by title only, and waive further reading of Urgency Ordinance, imposing a 45-day moratorium prohibiting processing, approval, and acceptance of new Data Center and Grid-Scale Battery Energy Storage Systems land use applications;

3. Direct staff to develop policy and regulations relating to data centers and grid-scale battery energy storage; and

4. Direct the Planning Commission to review draft policies and regulations and make recommendations to City Council in accordance with the Morgan Hill Municipal Code.

WORKSHOP

3. CITY COUNCIL MID-YEAR GOAL CHECK-IN

August 26, 2026
6 Recommendation:

Receive and review the Sustainable Morgan Hill ongoing and strategic priorities, departmental updates, workplan status updates, economic development and housing updates, and discuss emergency preparedness.

ADJOURNMENT

August 26, 2026
7 NOTICE
Any documents produced by the City and distributed to the majority of the City Council less than 72 hours prior to an open meeting, will be made available for public inspection at the City Clerk’s Counter at City Hall located at 17575 Peak Avenue, Morgan Hill, CA, 95037 and at the Morgan Hill Public Library located at 660 West Main Avenue, Morgan Hill, California, 95037 during normal business hours. (Pursuant to Government Code 54957.5)

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

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

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

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

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

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

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

August 26, 2026
8

1 CITY COUNCIL STAFF REPORT
MEETING DATE: August 26, 2026
PREPARED BY:

Chris Ghione, Public Services Director
APPROVED BY: City Manager

AUTHORIZE THE CITY MANAGER TO EXECUTE AND ADMINISTER

AN AMENDMENT TO THE AGREEMENT WITH THE COUNTY OF

SANTA CLARA FOR SOUTH COUNTY YOUTH TASK FORCE FUNDING

RECOMMENDATION(S)
Authorize the City Manager to further execute and administer an amendment to service agreement with the Santa Clara County District Attorney's Office to receive and administer grant funding in support of the South County Youth Task Force.

COUNCIL PRIORITIES, GOALS & STRATEGIES
City Council Ongoing Priorities
Enhancing Public Safety and Quality of Life
Supporting our Youth, Seniors, and Entire Community
Strategic Priorities 2026-2027
Public Safety
REPORT NARRATIVE:

The South County Youth Task Force (SCYTF) was formally established in January 2012 through a collaborative effort by the City of Gilroy, the City of Morgan Hill, Gilroy and Morgan Hill Unified School Districts, and Santa Clara County. This multi-agency partnership was created to address the challenges of youth violence and gang activity in the South Santa Clara County region. The SCYTF aims to implement a comprehensive, community-oriented approach focused on prevention, intervention, and restorative justice practices to empower disconnected youth and foster safer, healthier communities.

One of the major funding entities of the SCYTF is the Santa Clara County District Attorney's Office (DAO). In past years, the DAO has provided the City of Gilroy with funding to contract with community organizations to provide support services in the South County to support the SCYTF. Beginning in Fiscal Year 2025-26, the City of Morgan Hill began directly administering grant funding provided from the DAO for programs in Morgan Hill. This change has allowed programming provided by the funding to better meet the different and unique needs of Morgan Hill.

The attached agreement will provide $100,000 to the City of Morgan Hill for Fiscal Year

1 2026-27, which will be used to grant funding to community organizations to support the work of the South County Youth Task Force aimed at preventing youth violence, addressing health equity and neighborhood disparity issues, reducing juvenile delinquent behaviors and the recruitment of youth into gangs, and supporting parent's leadership and capacity-building within South Santa Clara County.

COMMUNITY ENGAGEMENT:

Collaborate
The SCYTF regularly engages with community members in Morgan Hill. This includes youth who are directly involved in the programs and provide direct feedback through the programs offered over the last year.

ALTERNATIVE ACTIONS:

The City Council can elect not to move forward with this funding and the City can request the City would in turn then not provide programs to the community.

PRIOR CITY COUNCIL AND COMMISSION ACTIONS:

The City Council approved Morgan Hill's participation in the South County Youth Task Force on June 20, 2012. The Council subsequently approved multiple memorandums of understanding in the ongoing support of the South County Youth Task Force. The Council approved the current agreement for funding with the County on June 18, 2025.

The City Council approved an agreement with Catholic Charities to provide youth support services on December 17, 2025.

FISCAL AND RESOURCE IMPACT:

The agreement will provide the City with $100,000 in revenue, which will be offset by just under $100,000 in expenses to provide grant funds to the community organizations providing the programming. Administration of the program will be conducted by the Public Services Department.

CEQA (California Environmental Quality Act):

Not a Project
Since the resulting activity is an administrative program that will not result in a change to the physical environment, this action is not a project under the California Environmental Quality Act.

COUNTY OF SANTA CLARA – AMENDMENT TO SERVICE AGREEMENT
This is an amendment to an existing Agreement
Form Effective as of $SULO , 202 Page 1 of 4
Purchase Order
Number:

Amendment
Number:

Effective Date (Will be the date
executed by Authorized County
Representative):

Maximum Financial Obligation
(Prior to this Amendment):

Amended Maximum Financial Obligation
(If dollar amount is changing):

Current Agreement End Date: New Agreement End Date:

For County Use Only – SAP
Account
Assignment
Plant
Number
General Ledger
(Expense Code)
Cost
Center
(Dept
Code)
Amount WBS
(Capital Project Code)
Internal Order
(“PCA” code –
optional)
Line 1
Line 2
Line 3
Line 4
Line 5
Parties to Agreement
Legal notices and invoices pertaining to this Agreement shall be sent to the appropriate contact person listed below. Notices shall be in writing and served either by personal delivery or sent by certified or registered mail, postage prepaid, addressed as follows. Notice shall be deemed effective on the date that the notice is personally delivered or, if mailed, three (3) days after deposit in the mail. Either party may designate a different person and/or address for the receipt of notices by sending written notice to the other party, which shall not require an amendment to this Agreement.

Contractor
Contractor Name
(As Displayed In SAP):

Contact Person:

Street Address *:

City, State, Zip *:

Telephone Number *:

Email Address *:

SCC Vendor Number
(As Assigned In SAP):
* To be completed for Independent Contractors Only – DO NOT COMPLETE FOR DEPENDENT CONTRACTORS 4400009066 1 07/01/2026
06/30/2026 06/30/2027
202 5255500 3836 $ 100,000.00
City of Morgan Hill
Jennie Tucker
17575 Peak Ave
Morgan Hill, CA 95037
(408) 310-4241
[email protected]
1002328
$ 100,000.00 $ 200,000.00
H
Select
Select
Select
Select
Docusign Envelope ID: 45C7F02B-8FC3-8490-8248-C7AF08AF2FB7

COUNTY OF SANTA CLARA – AMENDMENT TO SERVICE AGREEMENT
This is an amendment to an existing agreement
)RUP(IIHFWLYHDVRI$SULO
County of Santa Clara
Agency / Department: Department Number:

Program Manager or Contract
Monitor Name:

Street Address:

City, State, Zip:

Telephone Number:

Fiscal Contact
(Accounts Payable Contact):

Contract Preparer:

Signatures
Amendment is not valid until signed by Contractor and the County Authorized Representative. The Agreement as amended constitutes the entire agreement of the parties concerning the subject matter herein and supersedes all prior oral and written agreements, representations and understandings concerning such subject matter. By signing below, signatory warrants and represents that he/she executed this Amendment in his/her authorized capacity, that he/she has the authority to bind the entity listed below to contractual obligations and that by his/her signature on this Amendment, the entity on behalf of which he/she acted, executed this Amendment.

Agency/Department Manager: Date:

Agency/Department Fiscal Officer: Date:

Contractor: Date:

County Authorized Representative:
(Procurement Department, President of the Board of
Supervisors, Delegated Authority)
Date:

County Counsel:
(Signature required when the Standard Provisions
language (Section VI) is revised, or for IT Services
pursuant to Board Policy 5.3.5.2 (4), or for Board
approved contracts, or for contracts with Board delegated authority to agencies/departments.)
Please note: Attachments and exhibits that include
additional terms and conditions, conflict with County
standard provisions, or require risk assessment
must be approved by County Counsel.

Date:

Office of the County Executive:
(Signature required when Board approved contract by a
Delegation of Authority)
Date:

Signed and certified that a copy of this
document has been delivered by electronic or
other means to the President, Board of
Supervisors.

Attest:

Curtis Boone
Clerk of the Board of Supervisors
(Signature required when Board approved contract)
Date:

Office of the District Attorney 202
Chase Warner
7365 Monterey Street
Gilroy, CA 95020
Mei-Ching Hsiao
Juan Rayas
Docusign Envelope ID: 45C7F02B-8FC3-8490-8248-C7AF08AF2FB7 8/17/2026

COUNTY OF SANTA CLARA – AMENDMENT TO SERVICE AGREEMENT
This is an amendment to an existing agreement
)RUP(IIHFWLYHDVRI$SULO
Reason(s) for Amending the Service Agreement
Amend Term of Agreement
Or see Attachment as incorporated by this reference
Amend Contract Specifics
Note: A new Agreement should be created if the Scope of Services is significantly modified or expanded.

Or see Attachment as incorporated by this reference
Amend Maximum Financial Obligation
A. Maximum Financial Obligation prior to this Amendment:
(Same as on page 1) $
B. Amount of increase or decrease:
(Explain below) $
C. Revised Maximum Financial Obligation:
(A +/- B will equal C) $
Explanation of increase / decrease (include new payment terms if applicable):

Or see Attachment as incorporated by this reference
Extend contract end date from June 30, 2026 to June 30, 2027.

In Attachment A, replace Paragraph 1.e in its entirety with the following:

Contractor shall enter into a single or separate agreements with CBO(s) that outline the services and deliverables in accordance with the SCYTF's Project II THRIVE! Strategic Plan, following Contractor's procurement process. These agreements will have the Project II THRIVE! Strategic Plan goals and language around transformational equity and racial equity. $ 100,000.00
$ 100,000.00
$ 200,000.00
Increase to cover services for City of Morgan Hill youth for Fiscal Year 26-27.

The 100,000 awarded for the 12-month cycle of July 1, 2025 to June 30, 2026 is no longer avaialble as of July 1, 2026.
✔
✔
✔
Docusign Envelope ID: 45C7F02B-8FC3-8490-8248-C7AF08AF2FB7

COUNTY OF SANTA CLARA – AMENDMENT TO SERVICE AGREEMENT
This is an amendment to an existing agreement
)RUP(IIHFWLYHDVRI$SULO
Amend Standard Provisions
Or see Attachment as incorporated by this reference
Or Section VI. Standard Provisions is replaced in its entirety by Attachment Other (please explain below)
Or see Attachment ______ as incorporated by this reference Contract History
Total financial obligation from prior fiscal year(s): $ Financial obligation in current fiscal year: $
Cumulative total of all agreements with this Contractor within Budget Unit for same type of services (including this amendment):
$
Insurance
Insurance does not require changes
Insurance Exhibit is replaced by Exhibit B attached and incorporated by this reference.

All references to Bernice Aguilera to be replaced with Chase Warner. References to [email protected] to be replaced with [email protected].

Budget for Fiscal Year 2026-2027 (Attachment D3) is incorporated by this reference. $ 100,000.00
$ 100,000.00
$ 200,000.00
✔ 2
✔
Docusign Envelope ID: 45C7F02B-8FC3-8490-8248-C7AF08AF2FB7

Attachment D-3
FY26-27
South County Youth Task Force Page 1 of 1
Financial Contributing Agencies

JOINT REVENUE
Joint Revenue Total
Proposed FY Budget Contribution
FY 26-27
Participating Agency and Contribution
Morgan Hill Unified School District $45,000.00 $45,000.00 Santa Clara County - District Attorney's Office (DAO) $100,000.00 $100,000.00 Total Joint Revenue $145,000 $145,000
Matches: Positions and Programming
In-Kind Positions (Base Rates)
City of Morgan Hill - SCYTF Coordinator Position (0.2 FTE) $25,000 $25,000.00 Santa Clara County - DAO - SCYTF PM Position (.25 FTE) $43,366 $43,366.47 Santa Clara County - DAO - SCYTF Management Analyst (.25 FTE) $33,750 $33,750.00 Santa Clara County - DAO - SCYTF Community Outreach Specialist (.25 FTE) $23,421 $23,421.23 Total Hard Match $125,538 $125,538
Total Joint Revenue and Hard Match $270,538 $270,538

EXPENDITURE
Expenditure Total
Proposed Budget Expenditure
FY 25-26
Contractual Services: Positions, Programs and Activities Joven Noble, Xinachtli, Late Night Gyms, School-based Outreach (MH/SM) $125,000.00 $125,000.00 New Outreach and Educational Pilot Programs $0.00
Support for SC HEALS! Strategies $0.00
SCYTF Website $0.00
Subtotal Salary and Contractual Services $125,000 $125,000 Program Supplies
Smaller Contracts, Services and Supplies (for all groups, Strategic Planning, mass $20,000 $20,000.00 translating and mass printing, youth incentives, etc,
Subtotal Supplies $20,000 $20,000
Total Expenditure Proposed Budget Match for Personnell Expenses $145,000 $145,000 In-Kind Positions (Base Rates)
City of Morgan Hill - SCYTF Coordinator Position (0.2 FTE) $25,000.00 $25,000.00 Santa Clara County - DAO - SCYTF PM Position (.25 FTE) $43,366.47 $43,366.47 Santa Clara County - DAO - Management Analyst $33,750.00 $33,750.00 Santa Clara County - DAO - SCYTF Community Outreach Specialist (.25 FTE) $23,421.23 $23,421.23 Total Partner Professional Expenses Match for Personell Expenses $125,538 $125,538 Total Joint Expenditure and Partner Professional $270,538 $270,538 $0 $0
Docusign Envelope ID: 45C7F02B-8FC3-8490-8248-C7AF08AF2FB7

2 CITY COUNCIL STAFF REPORT
MEETING DATE: August 26, 2026
PREPARED BY:

Jennifer Carman, Development Services Director
APPROVED BY: City Manager

CONSIDERATION TO APPROVE AN INTERIM URGENCY ORDINANCE
IMPOSING A 45-DAY TEMPORARY MORATORIUM ON THE

PROCESSING AND APPROVAL OF NEW LAND USE APPLICATIONS

FOR FREE STANDING DATA CENTERS AND GRID-SCALE BATTERY

ENERGY STORAGE SYSTEMS (BESS) WITHIN THE CITY LIMITS

DURING THE CITY'S REVIEW AND ADOPTION OF REGULATIONS

FOR SUCH USES

RECOMMENDATION(S)

1. Determine the adoption of this Urgency Ordinance is exempt from California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines Section 15061(b)(3);

2. Introduce by title only, and waive further reading of Urgency Ordinance, imposing a 45-day moratorium prohibiting processing, approval, and acceptance of new Data Center and Grid-Scale Battery Energy Storage Systems land use applications;

3. Direct staff to develop policy and regulations relating to data centers and gridscale battery energy storage; and

4. Direct the Planning Commission to review draft policies and regulations and make recommendations to City Council in accordance with the Morgan Hill Municipal Code.

COUNCIL PRIORITIES, GOALS & STRATEGIES
City Council Ongoing Priorities
Enhancing Public Safety and Quality of Life
Protecting the Environment and Preserving Open Space and Agricultural Land Maintaining and Enhancing Infrastructure
Preserving and Cultivating Public Trust
Strategic Priorities 2026-2027
Public Safety
Economic Development and Tourism
Guiding Documents

2 Economic Blueprint
Morgan Hill 2035 General Plan
REPORT NARRATIVE:

Communities throughout the state and country have experienced negative effects of Data Center and Grid-Scale Battery Energy Storage Systems (BESS) land uses, including but not limited to intensive energy and water use, noise, crime and security issues, air quality, water and noise pollution, aesthetic impacts; and other related effects on property values and quality of life to surrounding neighborhoods. These land uses often necessitate unique and/or abnormally large utility infrastructure connections to electrical, water, and sewage systems; where existing infrastructure is unable to support such land use nor load intensity of demand.

The City Council requested consideration of a temporary moratorium on both uses at the August 19, 2026 Regular Meeting of the City Council.

The Morgan Hill Municipal Code (“MHMC”) does not, at present, regulate Data Center or BESS land uses, including location, size and scope, and other development standards as the uses are not included within the standards in its Zoning Ordinance.

Data Centers and BESS are currently undefined in the Municipal Code.

Under Government Code section 65858, a moratorium may be put in place on a temporary basis by adopting an interim ordinance as an urgency measure prohibiting a use that may conflict with a contemplated general plan, specific plan, or zoning proposal that the City plans to study within a reasonable time. An urgency measure requires a four-fifths vote of the City Council and must contain findings that there is a current and immediate threat to public health, safety, or welfare. An urgency measure may be adopted for an initial 45-day period and may be extended for a total maximum length of two years.

If notice of the urgency ordinance is published in the newspaper at least 10 days prior to its initial consideration, the moratorium may be extended for an additional 22 months and 15 days for a total of two years. If a newspaper notice is not given prior to the initial consideration of the urgency ordinance, then after the initial 45-day period, the interim ordinance may be extended for 10 months and 15 days – to be effective for a total of one year, and then may be reconsidered for an additional one-year extension. This urgency ordinance would be eligible for a 10-month and 15-day extension.

If the City Council adopts an urgency ordinance, it will take effect immediately, and staff will notice a public hearing no later than October 14 for Council to ratify the urgency ordinance and consider an extension.

COMMUNITY ENGAGEMENT:

If the moratorium is adopted, Community Engagement will follow the City's process for

2 zoning ordinance processing in the Municipal Code. This will include potential workshops, public hearings with both the Planning Commission and City Council and public noticing.

ALTERNATIVE ACTIONS:

The City could continue with the interpretation that these uses are not allowed within the City due to their lack of inclusion within the Municipal Code.

PRIOR CITY COUNCIL AND COMMISSION ACTIONS:

On August 19, 2026, City Council considered a proposal under agenda item 18 related to future regulations for land uses that could have significant impact on City infrastructure and natural resources such as data centers. During public comment and the discussion on this item, it was determined a potential temporary moratorium could provide the City the needed time to develop future regulations.

FISCAL AND RESOURCE IMPACT:

Once adopted, the moratorium will impose ongoing procedural requirements on the City, including preparation of required reports, publication and notice of public hearings, and preparation of future agenda items for City Council consideration. Compliance with these requirements will require staff time and related administrative expenses.

CEQA (California Environmental Quality Act):

Not a Project
The adoption of a temporary moratorium will not result in direct or indirect physical changes in the environment.

URGENCY ORDINANCE NO. XX

AN INTERIM URGENCY ORDINANCE OF THE CITY COUNCIL OF THE CITY OF MORGAN HILL IMPOSING A 45-DAY TEMPORARY MORATORIUM ON THE

PROCESSING AND APPROVAL OF NEW LAND USE APPLICATIONS FOR FREE

STANDING DATA CENTERS AND GRID-SCALE BATTERY ENERGY STORAGE

SYSTEMS (BESS) WITHIN THE CITY LIMITS DURING THE CITY'S REVIEW AND

ADOPTION OF REGULATIONS FOR SUCH USES
WHEREAS, data centers are facilities used to house computer systems, servers, datastorage equipment, telecommunications equipment, and related components. Demand for largescale data centers has increased substantially due to the growth of cloud computing, digital commerce, artificial intelligence, and other data-intensive technologies; and WHEREAS, there is a growing demand for Battery Energy Storage Systems ("BESS") in the state of California due to increased demand for renewable electricity to reach the State's clean energy goals and mechanisms to ensure reliability of the State's electric system, among other things; and
WHEREAS, the City’s existing regulations do not provide for either data center or BESS uses and as such the City does not currently allow either use within City limits; and WHEREAS, the City of Morgan Hill does not have specific land use policies or standards in place to regulate the location and operation of Data Center or BESS facilities within the City of Morgan Hill which would address compatibility with surrounding uses and safety among other issues; and
WHEREAS, both large-scale data centers and BESS facilities may impose significant demands on public utilities and infrastructure and create unforeseen land use impacts; and WHEREAS, pursuant to its constitutional police power, the City Council has authority to enact and enforce ordinances and regulations necessary to protect the public peace, health, safety, and welfare of the City and its residents; and
WHEREAS, Government Code section 65858 authorizes the City Council, without following the procedures ordinarily required for the adoption of a zoning ordinance, to adopt as an urgency measure an interim ordinance prohibiting uses that may conflict with a contemplated general plan, specific plan, or zoning proposal that the City Council, Planning Commission, or Development Services Department is considering, studying, or intends to study within a reasonable time; and WHEREAS, the City Council desires to temporarily prohibit the processing and approval of new land-use applications for data centers and BESS facilities while City staff evaluates the full scope and significance of their potential public health, environmental, infrastructure, and land-use impacts and considers whether, and to what extent, amendments to the City’s zoning regulations, development standards, or permitting requirements are appropriate.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF M O R G A N H I L L DOES ORDAIN AS FOLLOWS:

Section 1. The Council finds and declares that this urgency ordinance is necessary to protect the public safety, health, and welfare, and to prevent the development of uses that may be in conflict with a contemplated general plan or zoning proposal that the legislative body, planning commission, or the development services department is considering or studying or intends to study within a reasonable time.

Section 2. The City Council of the City of Morgan Hill finds that all Recitals are true and correct and incorporated herein by reference.

Section 3. This Ordinance is adopted pursuant to Government Code § 65858, and other applicable law.

Section 4. Findings. The City Council finds as follows:

1. Adoption of this interim ordinance is necessary to protect the City and its residents, businesses, and visitors from the potential public health, safety, and welfare impacts associated with data center and BESS land uses.

2. The moratorium will provide the City with sufficient time to study the scope and significance of potential impacts of data center and BESS development and prepare comprehensive regulations governing the location, design, operation, water and energy use, infrastructure requirements, and other development standards applicable to such uses.

3. Based on these findings and the evidence in the record, including the staff report accompanying this interim ordinance, the City Council finds that there is a current and immediate threat to the public health, safety, and welfare of the City, and that the approval of additional land use entitlements for data centers, including conditional use permits, building permits, or other applicable approvals required under the Morgan Hill Municipal Code, would result in that threat to the public health, safety, and welfare, within the meaning of Government Code section 65858, subdivision (c).

Section 5, California Environmental Quality Act. The City Council finds that adoption of this Urgency Ordinance is exempt from environmental review under the California Environmental Quality Act (Public Resources Code section 21000 et seq.; “CEQA”) pursuant to CEQA Guidelines section 15061(b)(3). The Ordinance establishes a temporary moratorium on the processing and approval of new land-use applications for data centers and BESS while the City studies potential regulatory amendments. It does not authorize any development, approve any land-use entitlement, or result in any physical change to the environment. Accordingly, it can be seen with certainty that adoption of the Ordinance will not have a significant effect on the environment.

Section 6, Imposition of Moratorium. For the duration of this Ordinance, including any extension thereof, the City shall not receive, accept, process, or approve any application for a data center or BESS land use.

This Ordinance shall remain in effect for 45 days from the date of its adoption, unless extended in accordance with Government Code section 65858.

Section 7. Report. Pursuant to Government Code § 65858, the City Manager, or designee, must prepare a

report for City Council consideration describing the measures taken to address the conditions which led to adoption of this Ordinance. This report must be provided to the City Council so that it may be considered and issued not later than 10 days before this Ordinance expires.

Section 8. Severability. Should any provision of this ordinance be deemed unconstitutional or unenforceable by a court of competent jurisdiction, such provision shall be severed from the ordinance, and such severance shall not affect the remainder of the ordinance.

Section 9. Effective Date; Posting. This Ordinance shall take effect immediately upon adoption.

The City Clerk is hereby directed to publish this Ordinance or a summary thereof in the manner required by law.

THE FORGOING ORDINANCE WAS DULY ADOPTED AT A MEETING HELD ON THE 26TH DAY OF AUGUST 2026, AND SAID ORDINANCE WAS DULY PASSED AND ADOPTED IN ACCORDANCE WITH LAW BY THE FOLLOWING VOTE:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

APPROVED: ATTEST:
______________________________ ________________________________ MARK TURNER, Mayor MICHELLE BIGELOW, City Clerk
 CERTIFICATE OF THE CITY CLERK 

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

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

DATE: _______________________
_________________________________
MICHELLE BIGELOW, City Clerk

3 CITY COUNCIL STAFF REPORT
MEETING DATE: August 26, 2026
PREPARED BY:

Christina Turner, City Manager
APPROVED BY: City Manager

CITY COUNCIL MID-YEAR GOAL CHECK-IN

RECOMMENDATION(S)
Receive and review the Sustainable Morgan Hill ongoing and strategic priorities, departmental updates, workplan status updates, economic development and housing updates, and discuss emergency preparedness.

COUNCIL PRIORITIES, GOALS & STRATEGIES
City Council Ongoing Priorities
Enhancing Public Safety and Quality of Life
Protecting the Environment and Preserving Open Space and Agricultural Land Maintaining and Enhancing Infrastructure
Supporting our Youth, Seniors, and Entire Community
Fostering a Positive Organizational Culture
Preserving and Cultivating Public Trust
Preserving our Community History
Enhancing Diversity and Inclusiveness
Advocating for Local, Regional, and State Legislative Initiatives Promoting a Healthy Community
Strategic Priorities 2026-2027
Fiscal Sustainability
Public Safety
Affordable Housing and Homelessness
Economic Development and Tourism
Transportation
Economic Mobility
Guiding Documents
Bikeways, Trails, and Recreation Master Plan
Climate Action Plan
Communications, Outreach, and Engagement Plan
Economic Blueprint
Fire Services Standards of Coverage
GIS Strategic Plan
Morgan Hill 2035 General Plan
Public Safety Master Plan

3 Storm Drain Master Plan
Vision Zero
Water System Master Plan
Wastewater System Master Plan
REPORT NARRATIVE:

On February 6 and 7, 2026, the City Council held its annual goal-setting workshop, during which the Council reviewed, verified, and updated the 2026-2027 Sustainable Morgan Hill strategic and ongoing priorities. At this Mid-Year Check-in, the City Council will receive and review the Sustainable Morgan Hill ongoing and strategic priorities, departmental updates, workplan status updates, economic development and housing updates, and discuss emergency preparedness.

COMMUNITY ENGAGEMENT:

Inform and Engage
This staff report serves to update the City Council and the Community on progress made toward Council goals and to review Sustainable Morgan Hill, and to receive input from the City Council and Community.

ALTERNATIVE ACTIONS:

Not Applicable.

PRIOR CITY COUNCIL AND COMMISSION ACTIONS:

On February 6 and 7, 2026, the City Council held its annual Goal Setting Workshop.

FISCAL AND RESOURCE IMPACT:

No fiscal impact related to the discussion of goals.

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
DEPARTMENT WORKPLAN 2026-2027
Updated August 2026
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

ADMINISTRATIVE SERVICES
Completed

DEVELOPMENT SERVICES
POLICE
Completed
FIRE
• Implement technology systems to accurately capture data for performance metrics.

PUBLIC SERVICES
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Balance recreation cost recovery goal while ensuring Community access with a target of $1M or less net impact on the General Fund.

Complete Urban Water Management Plan update and commence Water System Master Plan Update.

Initiate ADA Transition Plan including improvements to City facilities and sidewalk curb ramps.

Support completion of the Upper Llagas Watershed Flood Control Project by Valley Water.

Complete significant capital projects, including the East Dunne Reservoir Project, Butterfield Basin conversion project, Sewer Trunk Line Project, Aquatics Center Electrification Project, and Citywide Solar System Project.
2027
Advance a long-term funding strategy to close the General Fund structural deficit while maintaining reserves and service levels and evaluate potential revenue measures.

Implement SB 707 language access requirements and advance inclusive public meeting access and participation.

Develop plan for compliance for the new Phase II Stormwater Pollution Prevention Permit.

Planning, implementation, and reporting of State mandated storm system trash capture devices, beyond 50% of required installations.

Strengthen Police Officer recruitment, onboarding, and retention strategies.

Reinstate traffic division and regional auto theft task force positions.

Implement POST staffing recommendations, aligning them with available funding and Community priorities.

Complete Urban Service Area Amendment and Annexation application and CEQA analysis for Condit Sports Facilities & Butterfield Sports Park Expansion.

Revise and update the Transportation Element of the General Plan.

Update ordinances to support Economic Mobility and affordable housing, including:

Inclusionary Housing, Mobile Home Rents, and Condominium Conversion Ordinance.

Develop and implement programs for Downtown short-term parking, business deliveries, and valet parking.

Develop Sidewalk and Mobile Vending Ordinance.
2026

DEPARTMENT UPDATES
JANUARY – JULY 2026
1 | Page
,Note: text in blue denotes activities associated with Department Workplan items

ADMINISTRATIVE SERVICES
Council Services and Records Management
• Completed the candidate nomination period for the November 2026 election, including preparing and issuing candidate packets and processing candidate filings. • Prepared for SB 707 implementation by enhancing audiovisual capabilities, planning for Spanishlanguage City Council agendas, replacing public agenda posting boards, and updating meeting procedures to meet new accessibility and public participation requirements. • Supported regular and special City Council meetings: processing 103 staff reports and 12 meeting packets to date.
• Processed 22 resolutions, 2 ordinances, 12 recognitions, 13 proclamations, and 250 agreements. • Fulfilled 188 public records requests between January and July, ensuring timely responses under the Public Records Act.
• Delivered Political Astuteness and Communications, and Leadership trainings at the Northwest Clerk Academy.
• Delivered Customer Service Training in partnership with the Human Resources (HR) Director to City teammates.
• Provided full Clerk support to the Santa Clara Valley Habitat Agency, including agenda preparation, meeting clerk duties, and post-meeting follow-up such as minutes, resolutions, and records processing.
• Continued Clerk support to the Santa Clara County Recycling and Waste Reduction Commission, ensuring meeting compliance, agenda posting, and records retention for Commission actions.

Communications and Engagement
• Supported the City’s 120th Anniversary campaign and related Community engagement initiatives. • Developed new branded communications materials, including updated letterhead, outreach templates, and marketing collateral.
• Developed and launched the “We Do That!” spotlight video series, giving residents a behind-the-scenes look at City teams, facilities, essential services, and the employees who make them possible. • Continued monthly presence at Sidewalk Saturdays, building Community relationships and increasing in-person engagement.
• Produced and shared “Meet Morgan Hill” teammate highlight videos, showcasing employees across departments to humanize local government and strengthen Community connection. • Expanded bilingual outreach through Spanish-language social media content, newsletters, and public communications.

DEPARTMENT UPDATES
JANUARY – JULY 2026
2 | Page
• Supported communications for major Community events, including Open Streets, the Pride Flag Raising, Sidewalk Saturdays, Earth Day, and other City programming. • Created a social media content calendar and continued growing the City’s social media presence through strategic campaigns highlighting City services, events, economic development, and Community stories.
• Produced photography and video content to support Community events, public safety messaging, and organizational highlights.
• Supported Housing, Economic Development, Public Safety, Planning, Public Works, and Environmental Services with outreach, marketing, and bilingual communications, including translation and interpretation services.
• Produced more than 25 informational videos totaling over 100 minutes of content highlighting City programs, services, and Community initiatives.

Finance/Budget/Utility Billing
• Continued making steady progress on the implementation of our new Enterprise Resource Planning (ERP) system. As of July 2026, the Financials, Utility Billing, and Payroll modules are live. The next phase, implementation of Employee Access and Human Resources modules, is currently underway. • Completed the FY 2026–27 and 2027–28 Biennial Budget. Continued to review service priorities, evaluate potential revenue measures, and conduct Community engagement regarding the City’s ongoing structural budget challenges and the need for strategic action to ensure long-term fiscal sustainability.

Human Resources
• Processed 665 job applications, hosted 16 oral boards, and opened 15 recruitments. • Completed negotiations with all three bargaining groups with contracts to expire on December 31, 2028.
• Preparing for Open Enrollment window for benefits from September 14, 2026, through October 9, 2026, and Teammate Health Fair on September 30, 2026 including vendors and flu shots.

CITY ATTORNEY
• Continued to provide legal advice and legal support to City Council, City Commissions, City Manager, and City Departments initiatives.
• Provided advice and document review for 188 California Public Records Act (CPRA) requests and six subpoenas, as of July 2026.
• Made frequent Court appearances, primarily in San Jose, to represent the City in misdemeanor code violation cases, Gun Violence Restraining Orders (GVROs), and criminal court motions.

DEPARTMENT UPDATES
JANUARY – JULY 2026
3 | Page
• Updated contract templates and facilitated the amendments of approximately 150 contracts. • Oversaw the City’s risk management as the City’s Risk Manager and supervised all matters involving Joint Powers Insurance Authority (JPA). Advised on appropriate insurance requirements for City contracts and ensured ongoing compliance with insurance requirements for approximately 265 active agreements.
• Continued to attend and support Morgan Hill Police Department (MHPD) and Housing Department at the quarterly meeting with Morgan Hill property managers in collaboration with our county partners and assisted with outreach efforts into the Community regarding the Smokefree Ordinance passed in September 2024.
• Continued to support countywide efforts to address illegal massage businesses (IMBs). After having recently shut down over 13 IMBs in the City, Morgan Hill’s approach is considered a model within the County. Morgan Hill is now one of two cities pioneering a landlord engagement program.

CITY MANAGER
• Supported the preparation and adoption of the FY 2026–27 and FY 2027–28 Biennial Operating Budget and the FY 2026–27 through FY 2031–32 Capital Improvement Program Budget, including the implementation of the Balancing Act community engagement tool and the transition of the City's budget document to the ClearGov cloud-based platform.
• Helped with the interview process and successful onboarding of the City’s new City Attorney. • Appointed the City’s new Human Resources Director.
• Actively engaged in regional coordination through participation in regular, or as needed, meetings with Santa Clara County City Managers Association (SCCCMA), Morgan Hill Unified School District (MHUSD), Santa Clara Valley Transportation Agency (VTA), Chamber of Commerce, Gilroy, South County Youth Task Force (SCYTF), and Gavilan.
• Participated on the SCCCMA subcommittee to engage with the County and provide coordinated feedback on the Request for Proposals (RFP) for prehospital healthcare services. • Delivered Budget and Finance 101 presentation to the Santa Clara County Leadership Academy. • Presented to the Youth Leadership Morgan Hill Academy on Overcoming Barriers in Leadership and Public Speaking Techniques.
• Presented at the League of California Cities Mayors and Council Members Academy. • Serving on the Board of Directors for the California Cooperative Liquid Assets Securities System (CLASS), helping public agencies strengthen and diversify their investment strategies. • Serving on the NextGen of Silicon Valley Committee, promoting public sector careers and professional development for the next generation of local government leaders.

DEPARTMENT UPDATES
JANUARY – JULY 2026
4 | Page

DEVELOPMENT SERVICES
Building/Fire Prevention
• Continued processing permit applications. 1,122 permit applications were received, and 947 permits were issued.
• Continued to perform inspections on projects. 5,880 inspections have been performed.

Code Compliance
• Continued to work on closing out code compliance cases. 431 code cases were opened; 449 code cases were closed. There are currently 115 active code cases.

Economic Development
• Supported the successful lease of the entire 501,000 SF Cochrane Technology Center to Archer Aviation, attracting approximately 300 highly skilled engineering and manufacturing jobs to Morgan Hill. • Supported the successful lease of the 850 Jarvis Road (former Young’s Market/RNDC location), a 286,000 SF facility, to Heron Power attracting 300-400 manufacturing jobs to Morgan Hill. • Supported the sale of Butterfield 5 Tech Park from Invesco to MIR Mosaic who will be relocating their operations to Morgan Hill in late 2026/early 2027 attracting 65-75 jobs to Morgan Hill. • Continued support for the Hotel MOHI project during construction and design changes. • Developed programs for Downtown short-term parking, business deliveries, and valet parking. • Providing ongoing support of business development through interdepartmental coordination for El Pollo Loco, Tractor Supply Company, Poppy Ranch Shopping Center (Sprouts Farmers Market), Primrose Schools, speculative industrial development projects (760 Jarvis and 16175 Jacqueline Court), World Oil (Monterey Road), Shell Gas (W. Dunne Avenue), and Valero (Wright Avenue) which is converting to Chevron.
• Executed a 6-month marketing campaign with the Silicon Valley Business Journal to promote tourism assets and opportunities.
• Downtown Property Business Improvement District (PBID): Provided strategic oversight and support to achieve full funding for the Downtown Gateway Arch project (now under design and construction), expanding community activation through Sidewalk Saturdays and Twilight Markets, and enhancing the Downtown experience with ongoing sidewalk power washing and beautification initiatives (new garbage cans on Depot Street and updated landscaping at the Depot parking lot).

Housing/Homelessness/Economic Mobility
• Hired and onboarded Economic Opportunity Program Officer to coordinate and lead the implementation of the Elevate Morgan Hill framework.

DEPARTMENT UPDATES
JANUARY – JULY 2026
5 | Page
• Launched the Elevate Morgan Hill Impact Collaborative made up of community organizations working in the space of Economic Mobility to advise and help guide the implementation of the Elevate Morgan Hill Framework.
• Secured initial grant funding of $15,000 to support the implementation of a Spanish Leadership Academy.
• Continued coordination of the Below Market Rate (BMR) Program. • Recently completed lease up of Vida Homes (398 units/78 BMR rentals), adjacent to Butterfield Boulevard and Jarvis Drive.
• Coordination with our upcoming housing developments to ensure Morgan Hill residents will have access to new housing under construction. The Gates (49 units/7 BMR units), Denova Homes (93 units/14 BMR units) and Manzanita Park (67 units/10 BMR units), and Crosswinds (269 units/40 BMR units) will be coming online by the end of the year.
• Continued Community engagement and relationship building by tabling at Morgan Hill Open Streets event, Voices College Bound School’s Kremes festival, Santa Clara County’s Re-Entry Fair, and an Affordable Housing workshop.
• Partnered with both Project Sentinel and Rebuilding Together Silicon Valley to host information and education events on housing rights and resources.
• Relaunched the Monthly Housing Newsletter which is connecting residents to more housing related information and available housing options.
• Continued to provide support to residents looking for housing opportunities and families experiencing homelessness or at risk of homelessness.
• Partnered with the County of Santa Clara and City of Gilroy on an event for affordable manufactured home grants, providing pathways for South County residents to secure housing. • Continued to improve internal department coordination by moving encampment tracking into CityWorks to ensure homeless response is expeditious and effective with shelter and service support. • Participating in the Steering Committee of the Santa Clara County’s Community’s Plan to End Homelessness.
• Participating in Eden’s Housing Resident Services Committee.

Planning
• Initiated work and public outreach on the Greater Downtown Specific Plan, in which the Planning Division was awarded $1,150,000 through the Metropolitan Transportation Commission (MTC) Transit Oriented Communities (TOC) Planning Grant Program to be consistent with MTC TOC Policy. • Conducted a Climate Vulnerability Assessment and recommendations report in conjunction with Climate Action Pathways for Schools (through the James Cary Smith Community Grant Program) to comply with SB 379, Climate Adaptation, and AB 2684, Extreme Heat, to include a climate change

DEPARTMENT UPDATES
JANUARY – JULY 2026
6 | Page
vulnerability assessment and goals and policies that address climate adaptation and resilience in the Safety, Services, and Infrastructure Element.
• Initiated work and conducted a research workshop in June with Climate Action Pathways for Schools on updating the Natural Resources and Environment Element to comply with AB 1889, Room to Roam Act. • Assisted the Land Development Engineering Division in adopting the Comprehensive Safety Action Plan in February 2026.
• Released the Morgan Hill Annexation and Urban Service Area Amendment Draft EIR for the applications for Rose Orchard Court, Condit Sports Facilities, and Butterfield Sports Park Expansion from June 5, 2026, to July 20, 2026.
• Held a Self-Care Day Festival on March 28, 2026, in collaboration with EAH Housing and SC HEALS! providing health and education information to Community members, implementing policies from the Healthy Neighborhoods for All Element.
• Continued exemption from SB 423 Streamlined Ministerial Approval Process (formerly SB35) based on the City’s progress on Regional Housing Needs Allocation (RHNA) and Annual Progress Report filing. • Coordinated with City Departments on implementation of the new AB130/AB131 CEQA Exemption and Streamlined Permitting process.
• Continued to collaborate with Economic Development on land use changes to improve flexibility and attract new businesses.

FIRE
• Implemented the First Due Records Management System (RMS) to streamline incident reporting and ensure full National Emergency Response Information System (NERIS) compliance. • Deployed ArcGIS Field Maps to modernize and increase the efficiency of defensible space inspections. • Initiated the procurement of two 2009 Pierce Quantum Type I Fire Engines to strategically reinforce the Morgan Hill Fire Department (MHFD) apparatus fleet.

POLICE
• Hired two multiservice officers and six police officers. The Department will be fully staffed and preparing for three retirements.
• Reinstated traffic division and regional auto theft task force positions. • Built out wellness and resiliency program by expanding team and using therapy dogs and psychologists. • Evaluating recommendations from Police Officer Standards and Training (POST) study. • Our police officers and detectives remain fully engaged in ongoing investigations related to multiple serious criminal incidents, dedicating significant time and resources to solving each case. • Acclimated new explosive/apprehension K-9 and deployed him at special events.

DEPARTMENT UPDATES
JANUARY – JULY 2026
7 | Page
• Completed dispatch remodel which included updating end-of-life equipment. • Increased Downtown/special event safety by adding pan, tilt, and zoom cameras. • Fulfilled Traffic Safety Enforcement grant requirements. • Conducted enforcement of illegal massage businesses.
• Evaluating Emergency Medical Service dispatching options.

Office of Emergency Services
• Developing annual Emergency Operations Center (EOC) functional exercise. • Increased Community Emergency Response Team (CERT) emergency callout capabilities. • Engaged emergency preparedness and response relationships with Community Based Organizations (CBOs), Faith Based Organizations (FBOs), and private businesses.

Information Technology (IT)
• Continued supporting new technology initiatives city-wide. • Adapted to end-of-life hardware and software by deploying new technology city-wide.

PUBLIC SERVICES
Environmental Services
• Implementation and enforcement of State‑mandated requirements for solid waste regulations related to organic waste management for businesses and residents continues, with City teammates and the solid waste franchise staff supporting businesses in understanding and implementing requirements. • Preparations for the Second Chance Week events in Gilroy and Morgan Hill are in progress, September 12–20, 2026.
• Continued implementation of the stormwater inspection program, resulting in inspections of 15 active construction sites and 297 stormwater treatment measure inspections for post‑construction facilities, reducing sediment and/or bacteria load discharges into local waterbodies. • Successfully submitted the Solid Waste Electronic Annual Report to CalRecycle for the Integrated Waste Management Act mandated by the State.
• Entered the second year of the current grant cycle and continued work toward implementing the City’s Climate Action Plan using grant funding from Silicon Valley Clean Energy and minimal staff resources. • Supported water conservation efforts by conducting Non‑Functional Turf outreach to Commercial, Industrial, and Institutional (CII) properties, resulting in hundreds of thousands of square feet converted to drought‑tolerant landscaping and more than 50% of surveyed CII properties meeting compliance with the City’s ordinance.

DEPARTMENT UPDATES
JANUARY – JULY 2026
8 | Page
• Successfully submitted the Urban Water Use Objective report to the State Water Board for the Water Conservation as a Way of Life Regulation mandated by the State. • Through the Private Sewer Lateral (PSL) program, supported the completion of 294 lateral line inspections, resulting in repair or replacement of damaged lines and reducing infiltration into the City’s Wastewater System; 17 PSL grants were awarded to support a portion of these repairs. • Received the first wave of Private Sanitary Sewer Collection System (PSSCS) inspections for large developments.
• Launched the online PSL Inspection Reporting Platform in CityWorks, streamlining the inspection process; stakeholder trainings were held in January–February 2026. • Supported the Maintenance and Engineering Divisions with planning and installing full trash capture devices to reduce trash load discharges into local waterbodies and comply with State requirements. • Ensured the City met mandated Storm Water Pollution Prevention reporting amid increasing State reporting requirements.
• Completed the fifth consecutive year as TAC Program Administrator and Contracting Agent for Countywide Solid Waste Services (CSWS), supporting the Santa Clara County Recycling and Waste Reduction Commission (Commission).
• Facilitated Brown Act–compliant strategic planning, information exchange, and collaboration among 16 jurisdictions to address emerging solid waste priorities, including compliance with SB 54 and planning for the anticipated FY 2028-29 Commission budget shortfall. • Refined the administration workflow for an integrated Commission budget display providing a user‑friendly overview of revenues, expenditures, and cash flow administered by the City of Morgan Hill (Contracting Agent) and the County of Santa Clara (Fiscal Agent). • Completed the WaterSMART Grants: Small‑Scale Water Efficiency Projects application for FY 2026–27 titled “Morgan Hill Water Smart Landscape Conversion Program.” • Initiated work on the CalRecycle Beverage Container Recycling Grant (RBC38 and RBC39) to replace and install new water refill stations and dual‑stream waste bins. • Received a mini‑grant from Valley Water for the installation of an interpretive audio post at the Magical Bridge Playground.

Engineering
• Conducted plan reviews for private development projects to ensure public improvements and stormwater pollution prevention facilities complied with all City and State requirements, supporting regulatory compliance, protecting the City's standing with state agencies, and ensuring the delivery of high-quality public infrastructure.
• Began the 2026 Pavement Rehabilitation Project rehabilitating significant roadways across the City, including roadways in Jackson Meadows, Woodview Avenue, and portions of Butterfield Boulevard and Sutter Boulevard.

DEPARTMENT UPDATES
JANUARY – JULY 2026
9 | Page
• Supported the ongoing construction of Valley Water’s Upper Llagas Creek Flood Protection Project, which reached a major milestone in 2025 with flood protection now occurring in the southern reaches of the City. Substantial completion of the project is anticipated in October 2026, resulting in flood protection for thousands of Morgan Hill residents.
• Continued advancing the multi-year construction project to complete a water reservoir on East Dunne Avenue that will provide improved resiliency and enhanced fire protection. With construction expected to be completed in the coming months, design efforts also commenced on the second phase of the project, including a new booster station at the site.
• Achieved substantial completion of the City's improvements at the new Butterfield Park. The City is working with USA BMX to complete its portion of the improvements. • Worked to progress designs for several infrastructure projects, including the replacement and upsizing of the Glen Ayre water reservoir/tank, a new roundabout at the Santa Teresa and Watsonville intersection and expansion of the Villa Mira Monte site. • Completed the grant-funded Comprehensive Safety Action Plan for the City and used the completed plan in a grant application to fund future roadway improvements. • Began operating a Citywide Solar Project at seven City locations, reducing operational costs and supporting the City’s Climate Action Plan.
• Continued construction of a new municipal water well off Eagle View Drive, which is anticipated to come online in 2027 supporting redundancy in the City’s water system.

Maintenance
• Completed open space and vegetation maintenance ahead of fire season, receiving significantly reduced requests from neighboring residents due to early completion. • Completed improvements at the Centennial Recreation Center (CRC) including replastering the pool, replacing the pool drains, upgrading the pool lights to LED, and installing new HVAC ventilation in the natatorium.
• Installed a new high efficiency boiler at the Aquatics Center (AC) for the competition pool and repaired the instruction pool filtration system. Also replaced the HVAC units in the party room. • Installed new sound barriers and supported the installation of a new lighting system on the Pickleball Courts within Community Park.
• Coordinated with the Property Based Improvement District (PBID) on installation of new landscaping at the parking lot and new trash cans on Depot Street.
• Supported and coordinated with Our City Forest to plant 70 new trees throughout the City. • Ensured ongoing protection of playground surfaces by resealing Magical Bridge and Railroad Park playground surfacing.
• Completed 21 pothole repairs and 13 asphalt patch repairs to support safe roadways.

DEPARTMENT UPDATES
JANUARY – JULY 2026
10 | Page
• Abated graffiti at 69 locations and picked up 126 illegal dumps across the City, supporting a safe and clean community.
• Supported the final completion of the City’s Americans with Disability Act (ADA) Transition Plan and incorporated installation and upgrade of several new curb ramps in alignment with the Plan. • Completed the total replacement of the Police Department HVAC units, while obtaining numerous rebates to reduce costs for the replacement.
• Onboarded new janitorial contractor and worked to improve service levels within City facilities.

Recreation and Community Services
• Continued to strive toward cost recovery with a preliminary estimate of cost recovery at approximately 90% for FY 2025-26.
• Managed the City’s four major recreation facilities—Centennial Recreation Center, Outdoor Sports Center, Aquatics Center, and Community and Cultural Center—in collaboration with key partners, accommodating an estimated one million visits in FY 2025-26. • Strengthened member retention efforts at Centennial Recreation Center through the development and implementation of New Member Orientations and Introduction to Group Exercise classes and other retention strategies.
• Achieved full enrollment for the Fall (September) Recreation Preschool program by May, exceeding typical registration timelines.
• Continued to market and promote the use of rental facilities at the Community and Cultural Center and other locations successfully, with very strong rental rates and revenues seen through FY 2025-26. • Continued to refine the use of recently implemented Recreation software to improve customer service, streamline operations, and reporting.
• Collaboration on utilizing the City’s Recreation facilities to support tourism continues through regular partnerships among City teammates, partner organizations, and Visit Morgan Hill. • Updated the Financial Assistance application for Centennial Recreation Center and Recreation Programs.
• Continued to support and provide coordination for the Morgan Hill Pickleball Club. • Continued to implement grant-funded Bicycle and Pedestrian Encouragement Program and hosted the Open Streets Event on Depot Street and the Community Center in early May 2026. • Partnered with the Morgan Hill School District and Catholic Charities to provide youth services and programs to teens, including offering Late Night Gym at the Centennial Recreation Center on Saturday evenings.
• Continued involvement in the South County Youth Task Force through both the Technical and Policy Teams, with expanded support for subcommittees and grant management - strengthening Community connections and engagement.

DEPARTMENT UPDATES
JANUARY – JULY 2026
11 | Page
• Operation of the Magical Bridge volunteer program and Community events has continued at past levels, with volunteer support provided by a very small number of dedicated volunteers. • Continued coordinated collaborative partnerships with numerous community organizations to provide support to youth, seniors and all members of our Community, including Living Above the Influence (LATI) programming, Senior Legal Assistance, Alzheimer’s Association, Berghoff Foundation, OnLok Services, Santa Clara County for Matter of Balance Classes through Santa Clara Valley Medical Center, Sourcewise Health Insurance Counseling, AARP Tax Assistance, California Highway Patrol Driving Classes, HomeInstead – Be a Santa to a Senior, and Veteran’s Affairs Services. • Offered three field trips for Seniors and continue to offer up to six per year. • Hosted a successful Senior Resource Fair at the Community and Cultural Center in partnership with the Senior Advisory Committee.
• Utilized grant funding to host Bike, Walk, and Roll days at five schools in the Morgan Hill Unified School District (MHUSD), with over 700 participants.
• Hosted a successful grant-funded Open Streets event at the Morgan Hill Community and Cultural Center, with over 1,000 people in attendance. There were over 80 participants in the bike traffic garden skills course.
• Supported the issuance and coordination of 27 special event permits for events in FY2025-26.

Utilities
• Supported the ongoing maintenance and safe operation of the City’s Utility system by completing 83 water main line repairs, 71 water service line point repairs, cleaning/flushing 506,454 linear feet of wastewater lines, performing video inspections of 95,804 linear feet of wastewater lines, testing of 38 water meters, 714 water meter replacements, 191 water valves exercised, 32 Cla-Valves rebuilt, 456 water main dead ends flushed, and 18 sewer system point repairs. • Updated the Urban Water Management Plan (UWMP) and successfully submitted it to the State of California.
• Commenced work on the update of the Water System Master Plan. • Completed the rehabilitation of the Encino storage tank. • Completed the rehabilitation of the Butterfield well, which is currently fully back online and operational. • Coordinated an agreement with local business to host beehives at Edmundson storage tank site to help the environment and balance the eco-system.
• Completed and shared the Water System’s annual Consumer Confidence Report to the Community to support confidence in the water quality provided by the City to our residents. • Completed the Annual Water Supply and Demand Assessment (AWSDA) report and successfully submitted to the State in a timely manner.

DEPARTMENT UPDATES
JANUARY – JULY 2026
12 | Page
• Completed rehabilitation to Lift Station K and substantially completed rehabilitation to Lift Station F, both of which are now operational.
• Held kickoff meeting to start the Supervisory Control and Data Acquisition (SCADA) application upgrade project.
• Proactively researched and began engaging consultants to review polyfluoroalkyl substances (PFAS) treatment in the event we need to respond to a source contamination. • Utilized temporary staff to support enhanced data collection identifying pipe materials on the City and customer side of water meters as required by the State of California. • Continued to coordinate with the Engineering Division to develop capital projects that address recommendations from the wastewater assessment, including the elimination of trouble spots which improve operational efficiency.
• Continued to coordinate partnership work with the City of Gilroy to complete the existing trunk sewer line repairs.
• Scheduled rehabilitation of Nordstrom Well and Boys Ranch 3a, which will begin the Fall of 2026 after the peak demand season concludes.

Geographic Information Systems (GIS)
• Upgraded the Enterprise GIS system Production environment to version 11.5, paving the way for a series of planned GIS projects and upgrades.
• Migrated the CityMaps application to updated software (Experience Builder) to support efficiency and enhanced use of GIS by City teammates.
• Completed the first several tasks of the Utility Data Management Migration project. • Completed GIS desktop software migration from ArcMap to ArcGIS Pro and upgraded Pro to a new version to support City teammates using those programs.

Public Services Administration
• Continued to make efforts in obtaining grant funding, most recently applying for grants to roadway safety, solid waste compliance, and various other areas. • Initiated efforts to find a new operator for public EV charging facilities to improve service to residents and support cost savings to the City.
• Continued to successfully recruit, hire, and onboard numerous new part-time teammates to operate the AC, CRC, and CCC, perform parks maintenance, and support environmental programs.

MID-YEAR GOAL

CHECK-IN
August 26, 2026

2 Outline
• Review of Sustainable Morgan Hill
• Department Updates
• Workplan Updates
• Economic Development Update
• Housing Update
• Emergency Preparedness

Sustainable Morgan Hill
City Council Ongoing Priorities
• Enhancing Public Safety and Quality of Life
• Protecting the Environment and Preserving Open Space and Agricultural Land • Maintaining and Enhancing Infrastructure
• Supporting our Youth, Seniors, and Entire Community
• Fostering a Positive Organizational Culture
• Preserving and Cultivating Public Trust
• Preserving our Community History
• Enhancing Diversity and Inclusiveness
• Advocating for Local, Regional, and State Legislative Initiatives • Promoting a Healthy Community

Sustainable Morgan Hill (cont’d)
2026-2027 Strategic Priorities
• Fiscal Sustainability
• Public Safety
• Affordable Housing and Homelessness
• Economic Development and Tourism
• Transportation
• Economic Mobility

6 Department Updates

7 Department Workplan 2026-2027

ECONOMIC DEVELOPMENT
August 26, 2026

Economic Development Key Efforts
9 Economic
Blueprint
Jobs and
Revenue
Fiscal
Sustainability &
Quality of Life

NEW BUSINESS LEASES
Cochrane Technology Center
510,000 SF ~ 300 Jobs
850 Jarvis Drive (formerly Youngs Market)
258,800 SF ~ 350 Jobs
Butterfield 5 Tech Park
82,400 SF ~ 75 Jobs

COMING SOON
Poppy Ranch Retail Center
• Regency Centers
• 7.82 Acres
• 55,984 Square Feet
• Anchored by Sprouts Farmers Market
760 Jarvis Drive
• Mersho Investments
• 44,000 Square Feet
• Light Industrial/Manufacturing
Tractor Supply Company
• California Gold Development
• Evergreen Village Shopping Center
• 24,000 Square Feet w/ Outdoor Display

POLICY INITIATIVES
12 Sidewalk Vending and Food Truck Ordinance
• Update regulations for sidewalk vendors and food trucks operating in the public right-of-way
• City Council - September 16, 2026
Downtown Parking Strategy
• Implementation of Short-Term Parking
• October 2026
Hotel Incentive Policy Update
• Update program guidelines
• City Council - November 18, 2026

DOWNTOWN PARKING STRATEGY
13 Short-Term Parking:
• Improve parking turnover: Convert 18 high-demand curbside spaces to 20-minute, short-term parking to optimize parking and improve access.
• Implementation: Install signage and curb markings, launch marketing campaign (“Closer Than You Think”), updated parking map, distribute new parking postcards, targeted outreach. • Enforcement: 30-day courtesy-notice period, citation-based enforcement to follow.

DOWNTOWN PBID
14 Downtown Gateway Arch
• Funding goals met
• Installation: Dec 2026
Sidewalk Saturdays
• 2
nd Saturday through November
• 9:00 AM to 1:00 PM
Twilight Markets
• June 19 & August 20
• 4:30 to 7:30 PM
Upcoming:
• 3
rd Annual MOHI Food & Wine Festival – Oct 18
• Safe Trick or Treat & Pumpkin Market – Oct 31
• Merry Morgan Hill – Nov 28 to Dec 17

QUESTIONS?

City of Morgan Hill
Housing Policy Updates Fall 2026
August 26, 2026

Proposed Policy Updates
Proposed Policy Changes High Level Components
Inclusionary Houring Ordinance
(Title 14) Update
• Administrative Clean up
• Clarity on Housing In Lieu Fees
• Revised Alternatives
Condominium Conversion
(Title 14.16) Update
• Tenant Relocation Assistance
• First Right to Purchase
• Align code with ABAG/MTC Transit
Orientated Communities
Mobile Home Rents (Title )
Update
• Modify cap of annual rent increase
• Administrative Clean up
Mobile Home Preservation Policy (Title 17.38)
Update
• Resident Relocation Assistance
• Resident First Right to Return
• Align code with ABAG/MTC Transit
Orientated Communities
Establish a Public Lands for Affordable
Housing Program
• Provide program principles and standards
on how City will follow California Surplus
Lands Act.

Next Steps
• Conduct Community engagement on draft policy proposals during September • Planning Commission feedback on policy proposals in October • Return to City Council for Policy Adoption Consideration in November

Emergency Preparedness
in the City of Morgan Hill
Building a Ready, Resilient Community

Preparedness is a Citywide Responsibility
• Every full-time City employee is a Disaster Service Worker (DSW) • Each City department has a trained teammate who can serve on the Emergency Operations Center (EOC) Team
• During a major incident, City teammates support continuity of government, essential services, shelters, evacuation sites, and the emergency call center
• Emergency management is coordinated through the City’s EOC using Standardized Emergency Management System (SEMS) and National Incident Management System (NIMS)

How Morgan Hill Organizes for Emergencies
• FIELD RESPONSE - Police, Fire, Public Works, and other operational resources
• EOC COORDINATION - City staff trained as Disaster Service Workers • COMMUNITY VOLUNTEERS – Community Emergency Response
Team (CERT), Amateur Radio Emergency Service (ARES)/Radio Amateur Civil Emergency Service (RACES), and Volunteers in Policing (VIPs)
• PARTNERS - Santa Clara County, neighboring agencies, faith institutions, schools, Red Cross, and other outside resources as needed

Preparedness Before the Incident
City of Morgan Hill • Office of Emergency Services • Emergency Preparedness

Preparing the Community
• CERT - free 20-hour all-hazard training in preparedness, fire safety, light search and rescue, communications, damage assessment, disaster psychology, and disaster medical operations
• Listos - a short preparedness program designed to reach Spanish-speaking residents • Do 1 Thing - a 12-month approach that
breaks preparedness into manageable
monthly actions
• City Office of Emergency Services (OES)
also provides preparedness workshops
and resources through the City’s
website and YouTube channel

Alert, Warning & Emergency Communications
• AlertSCC is Santa Clara County’s official emergency
alert system for fires, earthquakes, severe weather,
and public safety incidents
• City OES uses public education, the City website, and City video resources to help residents understand what to do before an emergency
• Redundant EOC communications include the countywide EOC-to-EOC radio network and satellite radios
• Social Media
• Licensed amateur radio operators provide an additional communications capability when normal systems are unavailable

Community Facilities Can Become Emergency Assets
• Community and Cultural Center - identified for emergency shelter, temporary evacuation, and cooling/warming center use • Centennial Recreation Center (CRC) - identified for emergency shelter, temporary evacuation and cooling/warming center use • Morgan Hill Library - used as a
cooling/warming center
• CRC grounds include the dog park, planned for
animal sheltering during a large-scale event

Preparing for Morgan Hill’s Hazards
• Wildfire - evacuation planning, emergency
supplies, pets and early evacuation
• Earthquake - household preparedness,
communications, and continuity planning
• Flooding - awareness of flood hazard areas and seasonal sandbag resources
• Power and communications outages – Public Safety Power Shutoff (PSPS) preparedness, backup communications, and emergency alerting
• All-hazards planning also accounts for human-caused and other emergencies that can disrupt City operations

When an Emergency Happens: From Field to EOC
• The EOC can be activated by the Director of Emergency Services (City Manager) or designated officials based on the incident’s impact
• The EOC coordinates information, priorities, resources, policy support, and requests for outside assistance
• City Disaster Service Workers and trained EOC staff provide continuity of government and essential services
• Response is integrated with field incident command and regional partners through SEMS/NIMS
• Recent EOC activations: Santa Clara Unit (SCU) Lightning Complex Fire, PSPS, COVID, several storm events

Recovery: Restore — Then Build Back Stronger
• Recovery restores the City’s
infrastructure, social systems, and
economic life after an emergency
• Where practical, Morgan Hill’s goal is
not simply to replace what was lost,
but to reduce future risk and
strengthen resilience
• Long-term resilience depends on the City, community,
businesses, nonprofits, and regional partners working together • Reimbursement of costs from Federal government

What City Council Should Know
• Morgan Hill has an all-hazards emergency management framework with defined leadership, EOC roles, and Citywide Disaster Service Worker responsibilities
• Preparedness is built before the emergency through plans, training, exercises, community education, volunteers, and partnerships • Communications and public facilities provide multiple layers of support when normal systems are disrupted
• Resilience is a long-term effort: reduce risk before disasters, coordinate effectively during response, and rebuild stronger during recovery

City Council’s Role During a Large-Scale Event
• Ratify a local emergency within 7 days after Director of Emergency Services (DES) has proclaimed
o Review proclamation every 14 days and terminate at earliest date; CA Govt Code 8630
o Ratify other orders to protect life and property; curfews, suspension of land use and zoning applications
• Continue Brown Act requirements for public meetings
• Do not report to Emergency Operations Center (EOC)
• Assist with sharing City’s message with Community members

Questions?