The Morgan Hill City Council voted 4-0 Nov. 5 to modernize its ordinances governing live entertainment, now allowing businesses to offer music and dancing without permits before 10pm while updating security requirements for late-night venues.
The amendment eliminates permitting requirements for entertainment conducted before 10pm, provided establishments comply with existing noise ordinances. Businesses wanting to host live entertainment after 10pm must obtain annual permits and meet enhanced security standards.
The previous ordinance, adopted in 1998, required establishments to acquire permits for live entertainment at any time of day.
“This is a step in the right direction to bring more entertainment, more music, more livelihood to our business community and to our downtown,” Morgan Hill Economic Development Director Matt Mahood, who developed the proposal in partnership with the Morgan Hill Police Department, said in his presentation to the city council Nov. 5.
Under the new rules, establishments seeking after-hours entertainment permits must comply with enhanced security requirements, including adequate surveillance systems, entry control and incident reporting. Larger venues hosting more than 100 attendees will have additional requirements, including bag checks and metal detectors.
Nick Gaich, president and CEO of the Morgan Hill Chamber of Commerce, called the previous 1998 ordinance “outdated, constraining and time-consuming.”
“The proposed amendments will give business owners the agility to proactively implement entertainment opportunities that enhance revenue in real time,” Gaich said.
David Dindak, owner of downtown wine bar Bubbles and Brew and president of the Downtown Association, said the most common complaint he hears among association members is that “Morgan Hill downtown falls asleep at nine o’clock.”
“We are becoming the gem of the South County, and nightlife is what is holding us back,” Dindak said, noting that members of the Downtown Association strongly support the changes.
Councilmember Yvonne Martínez Beltrán expressed cautious support but raised concerns about noise enforcement, calling attention to the fact that residents living in and around downtown were not consulted about the new ordinances before they were brought before the city council.
Police Chief Shane Palsgrove explained that existing municipal code prohibits music louder than necessary for “convenient hearing” and automatically deems music after 11pm unlawful if it disturbs peace more than 50 feet from the establishment.
Mahood said the Economic Development Department and police would work with businesses receiving multiple complaints to ensure compliance, adding, “Let’s not let bad actors continue to be bad actors.”
Councilmember Miriam Vega noted that businesses face strong incentives to comply with noise ordinances because the California Alcoholic Beverage Control agency can suspend liquor licenses for violations.
“If you want to break the rules, ABC will yank your license,” Vega said. “No restaurant or bar wants to go in front of ABC. For that reason, I think that our restaurants and bars here are aware of it.”
Annual permits are valid from July 1 to June 30 of the following calendar year. Businesses with current entertainment permits issued under the previous ordinances will be required to comply with the new security requirements, with compliance being phased in gradually until the next permitting cycle.
The ordinance was ultimately adopted unanimously 4-0, with councilmember Marilyn Librers absent for the vote. The council is expected to hear a second reading of the ordinance at the upcoming Nov. 17 city council meeting, with the new rules coming into effect 30 days later.
