City Council

City of Morgan Hill Meeting Minutes City Council Steve Tate ~ Mayor Rich Constantine ~ Mayor Pro Tem Gordon Siebert ~ Council Member Marilyn Librers ~ Council Member Larry Carr ~ Council Member 5:30 PM Council Chamber 17555 Peak Avenue Morgan Hill, CA 95037 Wednesday, May 18, 2016 SPECIAL MEETING 5:30 P.M. A Special Meeting of the City Council is called at 5:30 p.m. for the purpose of conducting a Closed Session and a Housing Workshop. TELECONFERENCE Mayor Tate will be participating in the meeting via teleconference as follows: Mayor Steve Tate 416 33rd Avenue North Nashville, TN 37209 Public comment from the Tennessee location shall be allowed. CALL TO ORDER Mayor Pro Tem Constantine called the meeting to order at 5:33 p.m. ROLL CALL ATTENDANCE Mayor Tate participated via teleconference. Council Member Siebert arrived at 5:36 p.m. Council Member Carr, Mayor Pro Tem Constantine, Council Member Librers, Council Member Siebert, Mayor Tate Present: 5 - Absent: 0 Page 1City of Morgan Hill Printed on 6/16/2016

May 18, 2016City Council Meeting Minutes DECLARATION OF POSTING OF AGENDA Deputy City Clerk Michelle Wilson declared the posting of the agenda. Mayor Tate declared the posting of the agenda at his location. CLOSED SESSION Interim City Attorney Gary Baum read the closed sessions into the record. OPPORTUNITY FOR PUBLIC COMMENT The public comment was opened at 5:35 p.m. Hearing no requests to speak, the public comment was closed. ADJOURN TO CLOSED SESSION The meeting adjourned to closed session at 5:35 p.m. Page 2City of Morgan Hill Printed on 6/16/2016

May 18, 2016City Council Meeting Minutes CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION Authority: Pursuant to Government Code Section 54956.9(d)(1) Case Name: City of Morgan Hill v. Kim Porzio, et al. Case Number Santa Clara County Superior Court Case No: 1-14-CV-265762 Attendees: City Manager; Interim City Attorney, Special Counsel Authority: Pursuant to Government Code Section 54956.9(d)(1) Case Name: City of Morgan Hill v. Alison Smith, et al. Case Number Santa Clara County Superior Court Case No: 1-15-CV-279950 Attendees: City Manager; Interim City Attorney, Special Counsel Authority: Pursuant to Government Code Section 54956.9(d)(1) Case Name: The Bank of New York Mellon v. City of Morgan Hill, et al. Case Number: Santa Clara County Superior Court Case No: 1-15-CV-279257 Attendees: City Manager; Interim City Attorney, Special Counsel CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION Authority: Pursuant to Government Code Section 54956.9(d)(4) Number of Cases: One (1) CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION Authority: Pursuant to Government Code Section 54956.9(d)(2) Number of Cases: One (1) CONFERENCE WITH REAL PROPERTY NEGOTIATORS Authority: Pursuant to Government Code Section 54956.8 Property: APN 817-13-037, 1250 Barrett Avenue Negotiating Parties: Attendees: City Manager, Interim City Attorney, Director of Community Services Department Name of Property Owner: Lomanto, Virginia Trustee Under Negotiation: Price and Terms of Payment RECONVENE The meeting reconvened to the Housing Workshop at 6:07 p.m. Page 3City of Morgan Hill Printed on 6/16/2016

May 18, 2016City Council Meeting Minutes HOUSING WORKSHOP 1 16-361 HOUSING WORKSHOP, PART 1 REGULAR MEETING 7:00 P.M. The regular meeting was convened at 7:04 p.m. Mayor Tate announced the posting of the agenda at his location. SILENT INVOCATION PLEDGE OF ALLEGIANCE CITY COUNCIL REPORTS Council Member Siebert shared that the City Council Budget Workshop will take place this Friday, May 20, 2016 at the City Council Chamber starting at 9:00 a.m. and he encouraged the residents to attend. CITY MANAGER'S REPORT City Manager Steve Rymer recognized Officer Christopher Woodrow and Fire Marshal Dwight Good for demonstrating the core values of the City. He concluded by speaking to the evening's supplement and presentations. CITY ATTORNEY’S REPORT Interim City Attorney Gary Baum announced that there was no reportable action from the closed sessions that took place earlier in the evening. OTHER REPORTS None. PRESENTATIONS 16-369 YAC Presentation - Asset #18- Youth Programs Page 4City of Morgan Hill Printed on 6/16/2016

May 18, 2016City Council Meeting Minutes PROCLAMATIONS Proclaiming Saturday May 21, 2016 as Kids to Parks Day Commissioners Mary Seehafer and Ron Locicero Proclaiming the week of May 13-20, 2016 as Affordable Housing Week Daniel Rhine, Eden Housing, Sandra Murillo, Rosa Ly, and Martha Lopez, HTSV Proclaiming May 15, 2016 as Peace Officers' Memorial Day and The week of May 15-21, 2016 as National Police Week Chief Swing Proclaiming the Month of May as Aquatics Month Splash RECOGNITIONS Sakata Seed America, Inc. Alecia Troy, Senior Marketing Manager Business Recycler of the Year Presenter: Julie Alter, Recology South Valley Recipient: Rosy Bergin, Rosy's at the Beach PUBLIC COMMENT The public comment was opened at 7:27 p.m. Hearing no requests to speak, the public comment was closed. ADOPTION OF AGENDA Action: On a motion by Council Member Librers and seconded by Council Member Carr, adopting the agenda as posted. The motion passed by the following vote: Ayes: Carr, Constantine, Librers, Siebert, Tate5 - Noes: 0 Absent: 0 Page 5City of Morgan Hill Printed on 6/16/2016

May 18, 2016City Council Meeting Minutes CONSENT CALENDAR: Approval of the Consent Calendar Action: On a motion by Council Member Librers and seconded by Council Member Carr approving Consent Calendar items 2 through 4, 6 through, 9, and 11 through 13. The motion passed by the following vote: Ayes: Carr, Constantine, Librers, Siebert, Tate5 - Noes: 0 Absent: 0 2 16-336 ADOPT ORDINANCE 2197, NEW SERIES, AN ORDINANCE OF THE CITY OF MORGAN HILL APPROVING A PRECISE DEVELOPMENT PLAN FOR A 37-UNIT RESIDENTIAL DEVELOPMENT AND AMENDING THE ZONING DISTRICT FROM R2-3,500 TO R2-3,500 (PD)- LOCATED AT THE NORTHWEST CORNER OF MONTEREY ROAD AND WATSONVILLE ROAD (APN 767-23-030) 3 16-337 ADOPT ORDINANCE 2198, NEW SERIES, AN ORDINANCE OF THE CITY OF MORGAN HILL APPROVING A DEVELOPMENT AGREEMENT FOR APPLICATION DA-14-08: MONTEREY - YOUNG A 37-UNIT RESIDENTIAL DEVELOPMENT LOCATED AT THE NORTHWEST CORNER OF MONTEREY ROAD AND WATSONVILLE ROAD (APN 767-23-030) 4 16-333 ADOPT ORDINANCE 2199, NEW SERIES, AN ORDINANCE OF THE CITY OF MORGAN HILL AMENDING CHAPTER 5.64 (TOBACCO RETAILER'S LICENSE) OF THE MUNICIPAL CODE OF THE CITY OF MORGAN HILL TO CLARIFY WHEN TOBACCO RETAILER'S LICENSE RENEWALS EXPIRE, TO ASSESS A PENALTY FOR LATE RENEWALS AND CLEAN UP LANGUAGE FROM THE ORDINANCE Page 6City of Morgan Hill Printed on 6/16/2016

May 18, 2016City Council Meeting Minutes 5 16-325 APPROVE FINAL MAP FOR BARlEY PLACE - TRACT 10239, FORMALLY KNOWN AS the GRANARY DISTRICT (corner of Depot Street and east main avenue) Action: On a motion by Council Member Librers and seconded by Council Member Siebert, adopting resolution 16-075 rescinding resolutions 6819 and 7027, approving final map for Barley Place - Tract 10239 for Condominium Purposes authorizing the City Clerk to sign final map authorizing the abandonment of an unused portion of a public street easement, authorizing the City Manager to execute the Subdivision Improvements Agreement with Barley Place LLC, authorizing the recordation of the final map and Subdivision Improvements Agreement, and authorizing the City Manager to execute a Stormwater Best-Management-Practices (BMP) Operation and Maintenance Agreement pending review and approval by the City Attorney. The motion passed by the following vote: Ayes: Constantine, Librers, Siebert, Tate4 - Noes: 0 Absent: 0 Abstain: Carr1 - 6 16-345 APPROVE THE APRIL 27, 2016 SPECIAL/REGULAR CITY COUNCIL MEETING MINUTES 7 16-343 APPROVE THE MAY 4, 2016 REGULAR CITY COUNCIL MEETING MINUTES 8 16-330 AWARD CONTRACT FOR ON-CALL EMERGENCY SPILL RESPONSE CLEANUP SERVICES 9 16-341 CITY POSITION ON PENDING STATE LEGISLATION - SB 1069 ACCESSORY DWELLING UNITS AND AB 2444 CALIFORNIA PARKS, WATER, CLIMATE, AND COASTAL PROTECTION AND OUTDOOR ACCESS FOR ALL ACT OF 2016 11 16-332 THIRD PARTY CLAIMS ADMINISTRATION FOR WORKERS' COMPENSATION 12 16-328 OUTDOOR SPORTS CENTER CONCESSIONAIRE AGREEMENT AMENDMENT 13 16-319 COUNCIL MEMBER MARILYN LIBRERS TRAVEL IN CONNECTION WITH THE SILICON VALLEY MAYORS’ CHINA TRIP Page 7City of Morgan Hill Printed on 6/16/2016

May 18, 2016City Council Meeting Minutes 10 16-334 SILICON VALLEY REGIONAL COMMUNICATION SYSTEM RADIO AND EQUIPMENT PURCHASE Item pulled for discussion at the request of the public. The public comment was opened at 7:30 p.m. John Eagler was called to speak. Hearing no further requests to speak, the public comment was closed. Action: On a motion by Council Member Siebert and seconded by Council Member Carr, adopting resolution 16-077 rejecting all bids for Fire Department portable multiband radios; and authorizing the City Manager to purchase multiband radios and equipment for Police and Fire Departments through the Silicon Valley Radio Communication Systems Project Cooperative Agreement for an amount not to exceed $960,029. The motion passed by the following vote: Ayes: Carr, Constantine, Librers, Siebert4 - Noes: 0 Absent: Tate1 - OTHER BUSINESS: 14 16-346 INCLUSIVE PLAYGROUND CONCEPT DESIGNS Community Development Director Chris Ghione presented the report. Corbin Schneider with Verde Design continued the report. The public comment was opened at 7:58 p.m. Ron Locicero was called to speak. Hearing no further requests to speak, the public comment was closed. The meeting was recessed at 8:04 p.m. The meeting was reconvened at 8:14 p.m. Action: On a motion by Council Member Carr and seconded by Council Member Librers, approving concept designs for the Morgan Hill Inclusive Playground. The motion passed by the following vote: Ayes: Carr, Constantine, Librers, Siebert, Tate5 - Noes: 0 Absent: 0 Page 8City of Morgan Hill Printed on 6/16/2016

May 18, 2016City Council Meeting Minutes 15 16-179 UPDATE ON REGIONAL MINIMUM WAGE EFFORTS AND ADOPTION OF A LOCAL MORGAN HILL MINIMUM WAGE Economic Development Manager John Lang presented the report. The public comment was opened at 8:33 p.m. John Horner was called to speak. Jessica Lynham was called to speak. Hearing no further requests to speak, the public comment was closed. Action: On a motion by Council Member Carr and seconded by Mayor Pro Tem Constantine, declaring that Morgan Hill supports a regional minimum wage approach through the Silicon Valley Cities Association. The motion passed by the following vote: Ayes: Carr, Constantine, Tate3 - Noes: Librers, Siebert2 - Absent: 0 16 16-342 RESIDENTIAL DEVELOPMENT CONTROL SYSTEM (RDCS) BIENNIAL REVIEW AND ADOPTION OF SET ASIDE ALLOTMENTS FOR THE 2016 RDCS COMPETITION Senior Planner Gina Paolini presented the report. The public comment was opened at 9:24 p.m. Bridgit Koller was called to speak. John Telfer was called to speak. Kerry Williams was called to speak. Hearing no further requests to speak, the public comment was closed. The meeting was recessed at 10:20 p.m. The meeting was reconvened at 10:26 p.m. Action: On a motion by Council Member Carr and seconded by Council Member Librers, directing staff to keep the total number of allocations for the fiscal year 2018/19 building allotments set aside (2016/17 competition) to 250 allotments. The motion passed by the following vote: Ayes: Carr, Librers, Siebert, Tate4 - Noes: Constantine1 - Absent: 0 Action: On a motion by Council Member Carr and seconded by Council Member Librers, adopting resolution 16-080 approving the total building allotments for FY 2018/19 and 2019/20 and the housing type distribution for the 2016 RDCS competition with the exception of the multi-family rental category, allowing that category to use allotments into a second year for an additional 133 units over two years. The motion passed by the following vote: Ayes: Carr, Librers, Tate3 - Noes: Constantine, Siebert2 - Absent: 0 Page 9City of Morgan Hill Printed on 6/16/2016

May 18, 2016City Council Meeting Minutes 17 16-298 2016 DOWNTOWN PARKING CONDITIONS STUDY UPDATE - HEXAGON TRANSPORTATION CONSULTANTS Assistant City Manager for Community Development Leslie Little presented the report. Ricky Williams with Hexagon Transportation Consultants Inc. continued the report. The public comment was opened at 10:40 p.m. Brian Sullivan was called to speak. Hearing no further requests to speak, the public comment was closed. Action: On a motion by Mayor Pro Tem Constantine and seconded by Council Member Carr, extending the meeting to 12:45 a.m. The motion passed by the following vote: Ayes: Carr, Constantine, Librers, Siebert, Tate5 - Noes: 0 Absent: 0 18 16-327 SITE REVIEW: MONTEREY - LEAL: GRANADA HOTEL THE PROPERTIES, IDENTIFIED BY ASSESSOR PARCEL NUMBER(S) 726-14-030, -029, -031, -026 AND -025, ARE LOCATED ON THE SOUTHWEST CORNER OF MONTEREY ROAD AND EAST 1ST STREET. Assistant City Manager for Community Development Leslie Little presented the report. The public comment was opened at 11:25 p.m. Gene Guglielmo was called to speak. Kathy Sullivan was called to speak. Julia Wolfsmith was called to speak. Brian and Kathy Sullivan were called to speak. Hearing no requests to speak, the public comment was closed. No action taken. 19 16-339 HOUSING PROGRAM UPDATE Housing Manager Rebecca Garcia presented the report. The public comment was opened at 11:42 p.m. Hearing no requests to speak, the public comment was closed. Action: On a motion by Council Member Carr and seconded by Council Member Siebert, adopting Below Market Rate Program Resolution 16-081 authorizing the City Manager to Amend Nyanda & Associates HouseKeys Below Market Rate Agreement, and authorizing City Manager to enter into an agreement with Rebuilding Together for a Rehab, Blight Busters Program. The motion passed by the following vote: Ayes: Carr, Constantine, Librers, Siebert, Tate5 - Noes: 0 Absent: 0 Page 10City of Morgan Hill Printed on 6/16/2016

May 18, 2016City Council Meeting Minutes PUBLIC HEARINGS: 20 16-349 MUNICIPAL CODE AMENDMENT (ZA-16-04: STREET TREES) AN AMENDMENT TO TITLE 12, CHAPTER 12.23 RESTRICTIONS ON REMOVAL OF SIGNIFICANT TREES, TO AMEND SECTIONS 12.32.020-DEFINITIONS, 12.32.070 PERMIT-APPROVAL-CRITERIA TO ADD SEPARATE SPECIFIC PROVISIONS FOR THE REPLACEMENT OF STREET TREES The public hearing was opened at 11:46 p.m. Hearing no requests to speak, the public hearing was closed. Action: On a motion by Council Member Siebert and seconded by Council Member Carr, continuing the item to the June 1, 2016 City Council meeting. The motion passed by the following vote: Ayes: Carr, Constantine, Librers, Siebert, Tate5 - Noes: 0 Absent: 0 21 16-338 INITIATE ANNUAL ASSESSMENT PROCESS FOR LANDSCAPE ASSESSMENT DISTRICT NUMBER 1 Community Services Director Chris Ghione presented the report. The public hearing was opened at 11:50 p.m. Hearing no requests to speak, the public hearing was closed. Action: On a motion by Council Member Siebert and seconded by Council Member Librers, adopting resolutions 16-082, 16-083, and 16-084 initiating the proceedings for the levy of assessments for Fiscal Year 2016-17, providing approval of the Engineer's Annual Report and the proposed assessment levy, and declaring the City Council's intention to levy the assessments in the District and to set the Public Hearing date for June 15, 2016, contingent that the engineer's report has been prepared in accordance with the law. The motion passed by the following vote: Ayes: Carr, Constantine, Librers, Siebert, Tate5 - Noes: 0 Absent: 0 Page 11City of Morgan Hill Printed on 6/16/2016

May 18, 2016City Council Meeting Minutes 22 16-317 REQUESTS FOR EXTENSIONS TO RESIDENTIAL DEVELOPMENT CONTROL SYSTEM (RDCS) PROJECT APPROVED CONSTRUCTION SCHEDULES AS FOLLOWS: 1. DEVELOPMENT AGREEMENT AMENDMENT, DAA-06-04G: DIANA - SHERIMAR: located on the south side of Diana Avenue west of Ringel Drive and east of Murphy Avenue (Assessor's Parcel Number 728-20-043 and 045) is. CEQA: Previously adopted Mitigated Negative Declaration. 2. DEVELOPMENT AGREEMENT AMENDMENT, DAA-09-05C: COCHRANE - BORELLO: located at Cochrane Road adjacent to Alicante Estates and Alicante Ranch bordered by Peet road and Coyote road (Assessor Parcel Number 728-34-026, is located at) CEQA: Previously adopted Environmental Impact Report. 3. DEVELOPMENT AGREEMENT AMENDMENT, DAA-14-03: BUTTERFIELD - DIVIDEND: located on the northwest and northeast corners of the intersection of Butterfield Boulevard and Central Avenue (Assessor’s Parcel Number 726-26-005) CEQA: Previously Adopted Mitigated Negative Declaration. Senior Planner Terry Linder presented the report. The public hearing was opened at 12:04 a.m. Chris Borello was called to speak. John Telfer was called to speak. Rick Nelson was called to speak. Dick Oliver was called to speak. Hearing no further requests to speak, the public hearing was closed. Action: On a motion by Council Member Siebert and seconded by Council Member Carr, Waiving the first and second reading of Development Agreement Amendment Ordinance 2200 for DAA-06-04G: Diana-Sherimar/Martinez. The motion passed by the following vote: Ayes: Carr, Constantine, Librers, Siebert, Tate5 - Noes: 0 Absent: 0 Action: On a motion by Council Member Siebert and seconded by Council Member Carr, Introducing Development Agreement Amendment Ordinance 2200 for DAA-06-04G: Diana-Sherimar/Martinez. The motion passed by the following vote: Ayes: Carr, Constantine, Librers, Siebert, Tate5 - Noes: 0 Absent: 0 Action: On a motion by Council Member Carr and seconded by Council Member Librers, Waiving the first and second reading of Development Agreement Amendment Ordinance 2201 for DAA-09-05C: Cochrane-Borello. The motion passed by the following vote: Ayes: Carr, Constantine, Librers, Siebert, Tate5 - Noes: 0 Absent: 0 Page 12City of Morgan Hill Printed on 6/16/2016

May 18, 2016City Council Meeting Minutes Action: On a motion by Council Member Carr and seconded by Council Member Librers, Introducing Development Agreement Amendment Ordinance 2201 for DAA-09-05C: Cochrane-Borello with the requirement that the final map be completed by December 31, 2016. The motion passed by the following vote: Ayes: Carr, Librers, Tate3 - Noes: Constantine, Siebert2 - Absent: 0 Action: On a motion by Council Member Siebert and seconded by Council Member Carr, waiving the first and second reading of Development Agreement Amendment Ordinance 2202 for DAA-14-03: Butterfield-Dividend. The motion passed by the following vote: Ayes: Carr, Constantine, Librers, Siebert, Tate5 - Noes: 0 Absent: 0 Action: On a motion by Council Member Siebert and seconded by Council Member Carr, Introducing Development Agreement Amendment Ordinance 2202 for DAA-14-03: Butterfield-Dividend. The motion passed by the following vote: Ayes: Carr, Constantine, Librers, Siebert, Tate5 - Noes: 0 Absent: 0 23 16-318 ZONING AMENDMENT, ZA-16-03:RESIDENTIAL CARE FACILITIES (AMENDING THE DEFINITION OF CONGREGATE CARE FACILITIES THROUGHOUT THE CITY) Senior Planner Gina Paolini presented the report. The public hearing was opened at 12:36 a.m. Eric Paine was called to speak. Daniel Nethercott was called to speak. Hearing no further requests to speak, the public hearing was closed. Action: On a motion by Mayor Pro Tem Constantine and seconded by Council Member Siebert, extending the meeting to 1:00 a.m. The motion passed by the following vote: Ayes: Carr, Constantine, Librers, Siebert, Tate5 - Noes: 0 Absent: 0 Action: On a motion by Council Member Siebert and seconded by Council Member Carr, waiving the first and second reading of Zoning Amendment Ordinance 2203. The motion passed by the following vote: Ayes: Carr, Constantine, Librers, Siebert, Tate5 - Noes: 0 Absent: 0 Action: On a motion by Council Member Siebert and seconded by Council Member Carr, introducing Zoning Amendment Ordinance 2203. The motion passed by the following vote: Ayes: Carr, Constantine, Siebert, Tate4 - Noes: Librers1 - Absent: 0 Page 13City of Morgan Hill Printed on 6/16/2016

May 18, 2016City Council Meeting Minutes FUTURE COUNCIL INITIATED AGENDA ITEMS: Council Member Siebert asked for an analysis on measure AA. Council Member Carr directed staff to bring back an item to discuss raising the minimum number of points required in the multi-family rental category of the RDCS to avoid low scoring projects in the future. Action: On a motion by Mayor Pro Tem Constantine and seconded by Council Member Siebert, extending meeting to 1:15 a.m. The motion passed by the following vote: Ayes: Carr, Constantine, Librers, Siebert, Tate5 - Noes: 0 Absent: 0 RE-ADJOURN TO CLOSED SESSION The meeting was adjourned to closed session at 12:53 a.m. The meeting was reconvened at 1:20 a.m. Interim City Attorney Gary Baum announced that there was no reportable action. ADJOURNMENT The meeting was adjourned at 1:20 a.m. Page 14City of Morgan Hill Printed on 6/16/2016

May 18, 2016City Council Meeting Minutes 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 that is described in the notice of this meeting, before or during consideration of that item. If you wish to address the Council on any issue that is on this agenda, please complete a speaker request card located in the foyer of the Council Chambers, and deliver it to the Minutes Clerk prior to discussion of the item. You are not required to give your name on the speaker card in order 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 by 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 plan an item on the agenda for a future City Council meeting. Should your comments require Council action, your request may be placed on the next appropriate agenda. 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 michelle.wilson@morganhill.ca.gov. AMERICANS WITH DISABILITIES ACT (ADA) In compliance with the Americans with Disabilities Act, if you are a disabled person and you need a disability-related modification or accommodation to participate in this meeting, please contact the City Clerk's Office at (408)779-7259, (408)779-3117 (fax) or by email michelle.wilson@morganhill.ca.gov. Requests must be made as early as possible and at least two-full business days before the start of the meeting. Page 15City of Morgan Hill Printed on 6/16/2016

May 18, 2016City Council Meeting Minutes City Council’s Priorities, Goals, and Strategies 2016 2016 Commitment The City Council is committed to engaging the community and being responsible stewards of public resources. Ongoing Priorities The City Council is committed to providing high quality and sustainable services for the entire Morgan Hill community. Fundamental to the City Council’s success are the ongoing priorities of: - Enhancing public safety - Protecting the environment - Maintaining fiscal responsibility - Supporting youth - Fostering a positive organizational culture - Preserving and cultivating public trust 2016 Focus Areas In addition to the City Council’s priorities, five specific focus areas were recognized by the Council that will require significant resources in 2016. - Planning Our Community - Developing Our Community - Enhancing Our Services - Improving Our Communication - Participating In Regional Initiatives Page 16City of Morgan Hill Printed on 6/16/2016

City Council Special - Regular Meeting Agenda Steve Tate ~ Mayor Rich Constantine ~ Mayor Pro Tem Gordon Siebert ~ Council Member Marilyn Librers ~ Council Member Larry Carr ~ Council Member Council Chamber 17555 Peak Avenue Morgan Hill, CA 95037 Wednesday, May 18, 2016 5:30 PM SPECIAL MEETING 5:30 P.M. A Special Meeting of the City Council is called at 5:30 p.m. for the purpose of conducting a Closed Session and a Housing Workshop. TELECONFERENCE Mayor Tate will be participating in the meeting via teleconference as follows: Mayor Steve Tate 416 33rd Avenue North Nashville, TN 37209 Public comment from the Tennessee location shall be allowed. CALL TO ORDER (Mayor Pro Tem Constantine) ROLL CALL ATTENDANCE (Deputy City Clerk Wilson) DECLARATION OF POSTING OF AGENDA Per Government Code 54954.2 (Deputy City Clerk Wilson) Page 1City of Morgan Hill Printed on 5/18/2016

May 18, 2016City Council Special - Regular Meeting Agenda CLOSED SESSION OPPORTUNITY FOR PUBLIC COMMENT ADJOURN TO CLOSED SESSION CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION Authority: Pursuant to Government Code Section 54956.9(d)(1) Case Name: City of Morgan Hill v. Kim Porzio, et al. Case Number Santa Clara County Superior Court Case No: 1-14-CV-265762 Attendees: City Manager; Interim City Attorney, Special Counsel Authority: Pursuant to Government Code Section 54956.9(d)(1) Case Name: City of Morgan Hill v. Alison Smith, et al. Case Number Santa Clara County Superior Court Case No: 1-15-CV-279950 Attendees: City Manager; Interim City Attorney, Special Counsel Authority: Pursuant to Government Code Section 54956.9(d)(1) Case Name: The Bank of New York Mellon v. City of Morgan Hill, et al. Case Number: Santa Clara County Superior Court Case No: 1-15-CV-279257 Attendees: City Manager; Interim City Attorney, Special Counsel CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION Authority: Pursuant to Government Code Section 54956.9(d)(4) Number of Cases: One (1) CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION Authority: Pursuant to Government Code Section 54956.9(d)(2) Number of Cases: One (1) CONFERENCE WITH REAL PROPERTY NEGOTIATORS Authority: Pursuant to Government Code Section 54956.8 Property: APN 817-13-037, 1250 Barrett Avenue Negotiating Parties: Attendees; City Manager, Interim City Attorney, Director of Community Services Department Name of Property Owner: Lomanto, Virginia Trustee Under Negotiation: Price and Terms of Payment RECONVENE CLOSED SESSION ANNOUNCEMENT Page 2City of Morgan Hill Printed on 5/18/2016

May 18, 2016City Council Special - Regular Meeting Agenda 6:00 p.m. HOUSING WORKSHOP HOUSING WORKSHOP, PART 116-3611 Item # Report # Recommendation: The purpose of the Housing Workshop is to comprehensively discuss the City's affordable housing programs, policies, and projects. REGULAR MEETING 7:00 P.M. The City Council has adopted a policy that regular meetings shall not continue beyond 11:00 p.m. unless extended by a majority of the City Council. SILENT INVOCATION PLEDGE OF ALLEGIANCE CITY COUNCIL REPORTS Council Member Siebert CITY MANAGER'S REPORT CITY ATTORNEY’S REPORT OTHER REPORTS PRESENTATIONS YAC Presentation - Asset #18- Youth Programs16-369 Item # Report # Page 3City of Morgan Hill Printed on 5/18/2016

May 18, 2016City Council Special - Regular Meeting Agenda PROCLAMATIONS Proclaiming Saturday May 21, 2016 as Kids to Parks Day Commissioners Mary Seehafer and Ron Locicero Proclaiming the week of May 13-20, 2016 as Affordable Housing Week Daniel Rhine, Eden Housing, Sandra Murillo, Rosa Ly, and Martha Lopez, HTSV Proclaiming May 15, 2016 as Peace Officers' Memorial Day and The week of May 15-21, 2016 as National Police Week Chief Swing Proclaiming the Month of May as Aquatics Month Splash RECOGNITIONS Sakata Seed America, Inc. Alecia Troy, Senior Marketing Manager Business Recycler of the Year Presenter: Julie Alter, Recology South Valley Recipient: Rosy Bergin, Rosy's at the Beach PUBLIC COMMENT 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. (See additional noticing at the end of this agenda) ADOPTION OF AGENDA Page 4City of Morgan Hill Printed on 5/18/2016

May 18, 2016City Council Special - Regular Meeting Agenda CONSENT CALENDAR: Items appearing on the Consent Calendar are considered routine and may be approved by one motion. Pursuant to City Council Policies and Procedures (CP 97-01), any member of the Council or public may request to have an item removed from the Consent Calendar for comment and action. Time Estimate for Consent Calendar: 1 - 10 Minutes ADOPT ORDINANCE 2197, NEW SERIES, AN ORDINANCE OF THE CITY OF MORGAN HILL APPROVING A PRECISE DEVELOPMENT PLAN FOR A 37-UNIT RESIDENTIAL DEVELOPMENT AND AMENDING THE ZONING DISTRICT FROM R2-3,500 TO R2-3,500 (PD)- LOCATED AT THE NORTHWEST CORNER OF MONTEREY ROAD AND WATSONVILLE ROAD (APN 767-23-030) 16-3362 Item # Report # Recommendation: Waive the reading, adopt Ordinance No. 2197, New Series, and declare that said title, which appears on the agenda, shall be determined to have been read by title and further reading waived. ADOPT ORDINANCE 2198, NEW SERIES, AN ORDINANCE OF THE CITY OF MORGAN HILL APPROVING A DEVELOPMENT AGREEMENT FOR APPLICATION DA-14-08: MONTEREY - YOUNG A 37-UNIT RESIDENTIAL DEVELOPMENT LOCATED AT THE NORTHWEST CORNER OF MONTEREY ROAD AND WATSONVILLE ROAD (APN 767-23-030) 16-3373 Item # Report # Recommendation: Waive the reading, adopt Ordinance No. 2198, New Series, and declare that said title, which appears on the agenda, shall be determined to have been read by title and further reading waived. Page 5City of Morgan Hill Printed on 5/18/2016

May 18, 2016City Council Special - Regular Meeting Agenda ADOPT ORDINANCE 2199, NEW SERIES, AN ORDINANCE OF THE CITY OF MORGAN HILL AMENDING CHAPTER 5.64 (TOBACCO RETAILER'S LICENSE) OF THE MUNICIPAL CODE OF THE CITY OF MORGAN HILL TO CLARIFY WHEN TOBACCO RETAILER'S LICENSE RENEWALS EXPIRE, TO ASSESS A PENALTY FOR LATE RENEWALS AND CLEAN UP LANGUAGE FROM THE ORDINANCE 16-3334 Item # Report # Recommendation: Waive the reading, adopt Ordinance No. 2199, New Series, and declare that said title, which appears on the agenda, shall be determined to have been read by title and further reading waived. APPROVE FINAL MAP FOR BARlEY PLACE - TRACT 10239, FORMALLY KNOWN AS the GRANARY DISTRICT (corner of Depot Street and east main avenue) 16-3255 Item # Report # Recommendation: Adopt resolution: 1. Rescinding resolutions 6819 and 7027; 2. Approving final map for Barley Place - Tract 10239 for Condominium Purposes; 3. Authorizing the City Clerk to sign final map authorizing the abandonment of an unused portion of a public street easement; 4. Authorizing the City Manager to execute the Subdivision Improvements Agreement with Barley Place LLC; 5. Authorizing the recordation of the final map and Subdivision Improvements Agreement; and 6. Authorizing the City Manager to execute a Stormwater Best-Management-Practices (BMP) Operation and Maintenance Agreement pending review and approval by the City Attorney. APPROVE THE APRIL 27, 2016 SPECIAL/REGULAR CITY COUNCIL MEETING MINUTES 16-3456 Item # Report # Recommendation: Approve Minutes. APPROVE THE MAY 4, 2016 REGULAR CITY COUNCIL MEETING MINUTES 16-3437 Item # Report # Recommendation: Approve Minutes. Page 6City of Morgan Hill Printed on 5/18/2016

May 18, 2016City Council Special - Regular Meeting Agenda AWARD CONTRACT FOR ON-CALL EMERGENCY SPILL RESPONSE CLEANUP SERVICES 16-3308 Item # Report # Recommendation: Adopt resolution: 1. Awarding a consultant agreement to All Clean Hazardous Waste Removal, Inc. ("All Clean") for emergency spill response cleanup services for three years, with the option to extend the term of the agreement for a maximum period of one year; and 2. Authorizing the City Manager to execute the agreement and other related documents for a three year term not to exceed $100,000 annually, and allowing the City Manager to extend the term of the contract for an additional one year after the initial term not to exceed an additional $100,000 for a total not to exceed of $400,000 for four years. CITY POSITION ON PENDING STATE LEGISLATION - SB 1069 ACCESSORY DWELLING UNITS AND AB 2444 CALIFORNIA PARKS, WATER, CLIMATE, AND COASTAL PROTECTION AND OUTDOOR ACCESS FOR ALL ACT OF 2016 16-3419 Item # Report # Recommendation: 1. Receive legislative correspondence in opposition of SB 1069 Accessory Dwelling Units; 2. Support AB 2444 (Garcia) California Parks, Water, Climate, and Coastal Protection and Outdoor Access for All Act of 2016; and 3. Direct staff to submit letters in support of AB 2444 to the appropriate representatives SILICON VALLEY REGIONAL COMMUNICATION SYSTEM RADIO AND EQUIPMENT PURCHASE 16-33410 Item # Report # Recommendation: Adopt resolution: 1. Rejecting all bids for Fire Department portable multiband radios; and 2. Authorizing the City Manger to purchase multiband radios and equipment for Police and Fire Departments through the Silicon Valley Radio Communication Systems Project Cooperative Agreement for an amount not to exceed $960,029. Page 7City of Morgan Hill Printed on 5/18/2016

May 18, 2016City Council Special - Regular Meeting Agenda THIRD PARTY CLAIMS ADMINISTRATION FOR WORKERS' COMPENSATION 16-33211 Item # Report # Recommendation: Adopt resolution authorizing the City Manager to execute and subsequently administer a two-year agreement (FY 2016-17 and FY 2017-18) with Innovation Claims Solutions, Inc. to provide third party claims administration for workers' compensation in an amount not to exceed $69,080. OUTDOOR SPORTS CENTER CONCESSIONAIRE AGREEMENT AMENDMENT 16-32812 Item # Report # Recommendation: 1. Adopt resolution authorizing the City Manager to enter into a Third Amendment to the Concessionaire Agreement for the Outdoor Sports Center (OSC) with the Morgan Hill Youth Sports Alliance; and 2. Direct City staff to begin review of alternative operating models for future operations at the OSC. COUNCIL MEMBER MARILYN LIBRERS TRAVEL IN CONNECTION WITH THE SILICON VALLEY MAYORS’ CHINA TRIP 16-31913 Item # Report # Recommendation: Authorize Council Member Marilyn Librers to attend the Silicon Valley Mayors' China Trip from May 21, 2016 through May 31, 2016 and authorizing the reimbursement of related travel expenses form the City Council budget in the General Fund in an amount not to exceed $400 and in accordance with applicable City policies and procedures. OTHER BUSINESS: INCLUSIVE PLAYGROUND CONCEPT DESIGNS16-34614 Item # Report # Recommendation: Approve concept designs for the Morgan Hill Inclusive Playground. Estimated Time: 10 Minutes Page 8City of Morgan Hill Printed on 5/18/2016

May 18, 2016City Council Special - Regular Meeting Agenda UPDATE ON REGIONAL MINIMUM WAGE EFFORTS AND ADOPTION OF A LOCAL MORGAN HILL MINIMUM WAGE 16-17915 Item # Report # Recommendation: 1. Accept a report on San Jose's regional minimum wage study; 2. Provide direction on Morgan Hill's position for the Cities Association June discussion; 3. Discuss local minimum wage Ordinance per March 2, 2016, City Council direction; and 4. Do not adopt a local minimum wage at this time. Estimated Time: 30 Minutes RESIDENTIAL DEVELOPMENT CONTROL SYSTEM (RDCS) BIENNIAL REVIEW AND ADOPTION OF SET ASIDE ALLOTMENTS FOR THE 2016 RDCS COMPETITION 16-34216 Item # Report # Recommendation: Adopt Resolution approving the total building allotment for FY 2018/19 and 2019/20 and the housing type distribution for the 2016 RDCS competition. Estimated Time: 30 Minutes 2016 DOWNTOWN PARKING CONDITIONS STUDY UPDATE - HEXAGON TRANSPORTATION CONSULTANTS 16-29817 Item # Report # Recommendation: 1. Receive report, and 2. Provide comments and direction regarding the study recommendations. Estimated Time: 30 Minutes SITE REVIEW: MONTEREY - LEAL: GRANADA HOTEL THE PROPERTIES, IDENTIFIED BY ASSESSOR PARCEL NUMBER(S) 726-14-030, -029, -031, -026 AND -025, ARE LOCATED ON THE SOUTHWEST CORNER OF MONTEREY ROAD AND EAST 1ST STREET. 16-32718 Item # Report # Recommendation: Review of Planning Commission action approving a Conditional Use Permit and Architectural and Site Review for a 60-room hotel with commercial and retail on the first floor. Estimated Time: 10 Minutes Page 9City of Morgan Hill Printed on 5/18/2016

May 18, 2016City Council Special - Regular Meeting Agenda HOUSING PROGRAM UPDATE16-33919 Item # Report # Recommendation: 1. Receive Housing Program Update; 2. Adopt Below Market Rate Program Resolution; 3. Authorize City Manager to Amend Nyanda & Associates HouseKeys Below Market Rate Agreement; and 4. Authorize City Manager to enter into an agreement with Rebuilding Together for a Rehab, Blight Busters Program. Estimated Time: 15 Minutes PUBLIC HEARINGS: MUNICIPAL CODE AMENDMENT (ZA-16-04: STREET TREES) AN AMENDMENT TO TITLE 12, CHAPTER 12.23 RESTRICTIONS ON REMOVAL OF SIGNIFICANT TREES, TO AMEND SECTIONS 12.32.020-DEFINITIONS, 12.32.070 PERMIT-APPROVAL-CRITERIA TO ADD SEPARATE SPECIFIC PROVISIONS FOR THE REPLACEMENT OF STREET TREES 16-34920 Item # Report # Recommendation: 1. Open Public Hearing; and 2. Continue the item to the June 1, 2016 City Council meeting. Estimated Time: 5 Minutes INITIATE ANNUAL ASSESSMENT PROCESS FOR LANDSCAPE ASSESSMENT DISTRICT NUMBER 1 16-33821 Item # Report # Recommendation: Adopt the resolutions approving the following actions: 1. Initiate the proceedings for the levy of assessments for Fiscal Year 2016-17 2. Provide approval of the Engineer's Annual Report and the proposed assessment levy, and 3. Declare the City Council's intention to levy the assessments in the District and to set the Public Hearing date for June 15, 2016. Estimated Time: 5 Minutes Page 10City of Morgan Hill Printed on 5/18/2016

May 18, 2016City Council Special - Regular Meeting Agenda REQUESTS FOR EXTENSIONS TO RESIDENTIAL DEVELOPMENT CONTROL SYSTEM (RDCS) PROJECT APPROVED CONSTRUCTION SCHEDULES AS FOLLOWS: 1. DEVELOPMENT AGREEMENT AMENDMENT, DAA-06- 04G: DIANA - SHERIMAR: located on the south side of Diana Avenue west of Ringel Drive and east of Murphy Avenue (Assessor's Parcel Number 728-20-043 and 045) is. CEQA: Previously adopted Mitigated Negative Declaration. 2. DEVELOPMENT AGREEMENT AMENDMENT, DAA-09- 05C: COCHRANE - BORELLO: located at Cochrane Road adjacent to Alicante Estates and Alicante Ranch bordered by Peet road and Coyote road (Assessor Parcel Number 728 -34-026, is located at) CEQA: Previously adopted Environmental Impact Report. 3. DEVELOPMENT AGREEMENT AMENDMENT, DAA-14-03: BUTTERFIELD - DIVIDEND: located on the northwest and northeast corners of the intersection of Butterfield Boulevard and Central Avenue (Assessor’s Parcel Number 726-26-005) CEQA: Previously Adopted Mitigated Negative Declaration. 16-31722 Item # Report # Page 11City of Morgan Hill Printed on 5/18/2016

May 18, 2016City Council Special - Regular Meeting Agenda Recommendation: 1. DAA 06-04G: Diana-Sherimar/Martinez: a. Open/close Public Hearing; b. Waive First and Second Reading of Development Agreement Amendment Ordinance; and c. Introduce Development Agreement Amendment Ordinance. 2. DAA 09-05C: Cochrane-Borello: a. Open/close Public Hearing; b. Waive First and Second Reading of Development Agreement Amendment Ordinance; and c. Introduce Development Agreement Amendment Ordinance. 3. DAA-14-03: Butterfield-Dividend: a. Open/close Public Hearing; b. Waive First and Second Reading of Development Agreement Amendment Ordinance; and c. Introduce Development Agreement Amendment Ordinance. Estimated Time: 20 Minutes ZONING AMENDMENT, ZA-16-03:RESIDENTIAL CARE FACILITIES (AMENDING THE DEFINITION OF CONGREGATE CARE FACILITIES THROUGHOUT THE CITY) 16-31823 Item # Report # Recommendation: 1. Open/close Public Hearing; 2. Waive the First and Second Reading of the Zoning Amendment Ordinance; and, 3. Introduce Zoning Amendment Ordinance. Estimated Time: 20 Minutes FUTURE COUNCIL INITIATED AGENDA ITEMS: Note: in accordance with Government Code Section 54954.2(a), there shall be no discussion, debate and/or action taken on any request other than providing direction to staff to place the matter of business on a future agenda. ADJOURNMENT Page 12City of Morgan Hill Printed on 5/18/2016

May 18, 2016City Council Special - Regular Meeting Agenda 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 that is described in the notice of this meeting, before or during consideration of that item. If you wish to address the Council on any issue that is on this agenda, please complete a speaker request card located in the foyer of the Council Chambers, and deliver it to the Minutes Clerk prior to discussion of the item. You are not required to give your name on the speaker card in order 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 by 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 plan an item on the agenda for a future City Council meeting. Should your comments require Council action, your request may be placed on the next appropriate agenda. 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 michelle.wilson@morganhill.ca.gov. AMERICANS WITH DISABILITIES ACT (ADA) In compliance with the Americans with Disabilities Act, if you are a disabled person and you need a disability-related modification or accommodation to participate in this meeting, please contact the City Clerk's Office at (408)779-7259, (408)779-3117 (fax) or by email michelle.wilson@morganhill.ca.gov. Requests must be made as early as possible and at least two-full business days before the start of the meeting. Page 13City of Morgan Hill Printed on 5/18/2016

May 18, 2016City Council Special - Regular Meeting Agenda City Council’s Priorities, Goals, and Strategies 2016 2016 Commitment The City Council is committed to engaging the community and being responsible stewards of public resources. Ongoing Priorities The City Council is committed to providing high quality and sustainable services for the entire Morgan Hill community. Fundamental to the City Council’s success are the ongoing priorities of: - Enhancing public safety - Protecting the environment - Maintaining fiscal responsibility - Supporting youth - Fostering a positive organizational culture - Preserving and cultivating public trust 2016 Focus Areas In addition to the City Council’s priorities, five specific focus areas were recognized by the Council that will require significant resources in 2016. - Planning Our Community - Developing Our Community - Enhancing Our Services - Improving Our Communication - Participating In Regional Initiatives Page 14City of Morgan Hill Printed on 5/18/2016