City Council
FY 22-23 Budget
Study Session
January 25, 2022
2 Community Engagement
Preliminary FY 2023-32 Ten-Year General
Fund Forecast
FY 21-22 Key Accomplishments and
Workplan Items
Prior Council Referrals with Funding and
Resource Considerations
Council Discussion and Feedback
Agenda
Community
Engagement
Citywide Survey
3 4
Survey Specifications
5 Preliminary Survey Results
• 83% ar e satisfied with the overall quality of
life in Milpitas
• 91% describe Milpitas as “accepting”
• 86% believe Milpitas is safe
• 84% feel that different cultures are
celebrated in Milpitas
• 86% are proud to live in Milpitas
• 68% trust the City to plan for Milpitas’
future
6 Key Takeaways
• Perceptions of life in Milpitas are very
po
sitive, and consistent with 2021.
• Large majorities continue to be proud to live
in Milpitas and see it as accepting and safe.
• However, opinions are more mixed as to
whether the City is “affordable.”
• Just two in five now believe the City is
growing too fast (41%), while 45% think it is
growing at the right pace.
• Police, 911 response, and infrastructure
continue to rate as top priorities.
7 Given a hypothetical $100 budget, residents would
prioritize public safety with the largest share of their funds.
Next, I am going to ask you to imagine you are in charge of Milpitas’ City budget. Every year, the City needs to prioritize funding various services. For this exercise, assume you have $100 to spend on six priority areas. After I read you all of the priority areas, please tell me how many dollars out of 100 you would spend on each one, keeping in mind that the total must add up to $100.
Public Safety Neighborhoods
and
Housing
Economic
Development
Environment Community
Wellness &
Open
Space
Transportation/
Transit
8 Community Engagement
• Surveys
• Statistically valid Community survey
• Open Town Hall survey
• Employee budget meetings
• Community budget meetings
• Two sessions
• Multiple Budget Study Sessions
• Public Hearing – Adoption of the Budget
9 Community Engagement
• Engagement Tools
• Dedicated page at
www.ci.Milpitas.ca.gov/budget
• Social media channels (Facebook, NextDoor,
Twitter)
• City Website
• Meeting broadcasts (YouTube,
Facebook)
• Newsletters (Milpitas Matters and
Connected)
• Virtual Webinars
Prelim. FY 2022-23
Ten-Year Forecast
1/25/2022
11 FY 2022-23 Budget Calendar and Due Dates
Preliminary FY 2023-32 Ten-Year General
Fund Forecast
Service Levels & Assumptions
Strategies
Reserve Policy Consideration
Feedback
Agenda
12 Budget Calendar and Process
Date Milestone
January 2022 Statistically-valid Community Survey
March through April 2022 Open Town Hall Budget Survey
January 25, 2022 Preliminary Budget Study Session
February 8, 2022 Capital Improvement Program Study Session February 15, 2022 FY 2022 Mid-Year Report Study
March 10, 2022 Community Engagement Meeting #1
April 7, 2022 Community Engagement Meeting #2
April 19, 2022 Capital Improvement Program Approval
April 19, 2022 Master Fee Schedule Adoption
May 20, 2022 Operating Budget Study Session
June 7, 2022 Public Hearing and Budget Adoption
13 Fiscal Outlook – Economic Big Picture
• Period of economic recovery from COVID pa ndemic
• COVID -- 3rd surge with Omicron variant, signaling a peak, albeit continues to impact revenue recovery in certain areas
• State of California proposed FY23 budget correlates with growth of nearly 30% from 2019-20 to 2020-21, estimates average year-over-year growth rate of 3.7% through 2025-26.
• State estimates economic growth continues after 2021 with real GDP growth averaging 2.8% through 2024.
• State estimates average 4% growth through 2025-26
• Milpitas unemployment at 2.9% Dec. 2021 from peak of 12.9% April 2020 • CPI - costs measured by all items less food & energy CPI-All Urban SF increased
4.2% from a year ago, December 2021
• The All Items CPI increased 7.0% before seasonal adjustment. • Federal Reserve strategy and rate hikes --> mortage rate increase 14 COVID Impact of Revenue Loss –
General Fund ($30 million)
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Variety of strategies: Measure F, defund CIP , use of reserves, interfund transfers, deferred maintenance, defund positions (23.75), employee concessions, and one-time revenues
15 General Fund Forecast
• General Fund is structurally balanced budget, until Measure F expires. • Preliminary draft – continued research, monitoring & feedback • Forecast does not include budget proposals for enhanced services • Forecast FY23 service level enhanced with some restored positions • Forecast does not address staff capacity to handle service and/or projects • Forecast does not envision using reserves to balance the budget • Emphasizes: economic development, cost management, innovation and prioritization of any new services/programs/projects.
Measure F ($6M/yr) and ARPA ($16.8M)
• Timely financial infusion that’s having an impact!
Preliminary FY 2023-32 General Fund Forecast
16 Prelim FY2023-32 General Fund Forecast
($million)
FY 21-22
Amended
FY 22-23
Forecast
FY 23-24
Forecast
FY 24-25
Forecast
FY 25-26
Forecast
FY 26-27
Forecast
Total Sources $111.3 $116.8 $123.2 $129.1 $133.4 $137.9 Total Uses 110.8 116.5 121.6 125.8 129.4 134.0
Annual
Surplus/ Deficits* $0.5 $0.30 $1.6 $3.3 $4.0 $3.9
FY 27-28
Forecast
FY 28-29
Forecast
FY 29-30
Forecast
FY 30-31
Forecast
FY 31-32
Forecast
Total Sources $142.3 $145.0 $144.0 $148.0 $152.7
Total Uses 138.3 144.6 150.7 157.6 163.4
Annual
Surplus/ Deficits $4.0 $0.4 $(6.7) $(9.5) $(10.6)
FY22 Surplus will be
offset with
encumbrance budget
carryforward
Measure F Expires
April 1, 2029
FY23 Forecast v4
17 Council Priority Areas
General
Fund
Revenues
$116.8M
Footer Here 18
42.6 27.5
11.5 8.3
7.3 6.4
5.4 5.2
1.1 0.7
0.4 0.3
0 5 10 15 20 25 30 35 40 45
Property Taxes
Sales & Use Tax
Licenses, Permits & Fines
Transient Occupancy Tax
Operating Transfers In
Sales Tax - Measure F
Franchise Fees
Charges for Services
Other Taxes
Intergovernmental
Use of Money and Property
Other Revenues
FY22-23 Revenues By Category ($ Millions)
Total Sales Tax
$34 M
1% Bradley
Burns
$27.5M
Measure F
$6.4M
General Fund
Services
Expenditures
$116.5M
19 37.8
27.8 9.6
8.0 6.0
5.7 4.3
4.0 3.9
2.1 1.9
1.8 1.3
0.9 0.6
0.6 0.3
0 5 10 15 20 25 30 35 40
Police
Fire
Public Works
Non-Departmental
Building Safety & Housing
Recreation & Community Services
Finance
Information Technology
Engineering
City Manager
Human Resources
Planning
City Attorney
Economic Development
City Clerk
City Council
Transfers
FY22-23 Department Budget Allocation ($ Millions)
20 FY22-23 General Fund Expenditure By Department
General Fund
Services
Expenditures
$116.5M
Police
32%
Fire
24%
Public Works
8%
Non-Departmental
7%
Building
Safety &
Housing
5%
Recreation &
Community
Services
5%
Finance
4%
Information
Technology
3%
Engineering
3%
City Manager
2%
Human
Resources
2% Planning
2%
City Attorney
1% Economic
Development
1%
City Clerk
0%
City Council
0%Transfers
0%
21 Data-driven, historical growth rates, working with consultants and City Departments, judgment.
Property Tax (FY23 +4%), contingencies:
• Property Tax ERAF less 15%, caution ($2.3M total)
• Backlog of Property Tax Assessed Valuation Appeals
Sales Tax (HdL & Assoc.)
• Improving for FY22, leveling in FY23, significant shift to online shopping and county pool
TOT (FY23 +8%), TOT July – Nov 2021 weaker than estimated Includes Fire SAFER Grant ($800k FY22, $221k FY23)
Revenue Projection
Sales Tax –
1% Bradley
Burns • FY19 $28M actual
• FY20 $24.2M actual
• FY21 $22.8M actual
• FY22 $25.7M estimated (12% improvement)
• FY23 $26.0M +3% Forecast
• FY24 $27.1M +3.5% Forecast
Footer Here 22
July-Oct
Measure F
¼ % Sales Tax
• 8 Years, Effective April 1, 2021 through April 1, 2029 • Measure F – mo re focused on “use” tax (i.e. vehicle, business- to-business), revenue allocation differs from the 1% Bradley Burns sales tax. So, we cannot assume ¼% equates to 25% of City sales tax revenues
• Original Estimate ¼% estimate was $6.3M
• Only 7 months of receipt, not much data for baseline revenue p
rojections
• First quarter was in FY21, total revenue was $1.3M actual • FY22 $6.3M Estimated
• FY23 +2.9% Forecast
• FY24 +2.7% Forecast
• Continue to monitor especially various business sectors 23 24
TOT Hotel Tax
• FY22 Amended Budget $7.5M with two new
hot
els go-live
• FY22 5 months of revenues is less than budget
• Strong growth May – July 2021
• Flat and reductions Aug – Sept – Oct 2021
• Assumes 5% increase to achieve FY22
• $7.5M Amended Budget
• FY23 Assumes 8% Increase
• ARPA economic development & hotel
assistance
• Continue to monitor
25 TOT Hotel Tax – Revenue Trend
Only 5
periods
26 Personnel cost budgeting based upon
current MOUs
Contract scheduled increase(s) or CPI%
estimate
Pension costs based upon Bartel Actuary
Report
• Includes the payment of unfunded
liability (UAL) in the forecast
• CalPERS FY21 21% investment return
reduces unfunded liability
Staffing – Defunded and Restored
Funding (FTE = full time equivalent)
Expenditure Projections
COVID Budget
Impacts to Staffing
FTE Comments
Defunded 23.75 13.75 @ FY21 Mid-Year
10 (net) @ FY22 Adopted
Restored Funding 9 FY23 Proposed:
ARPA = 6 public safety
Gen Fund = 3 non-safety
Net Defunded 14.75
27 Expenditure Projections (cont'd)
Higher General Liability & Property Insurance Premiums
• FY22 Board approved 3-year phase-in, saved Gen Fund ~$300k • Assumes +40%, $647k total to All Funds or $448k to Gen Fund, yr2 of 3yr phase-in • PLAN JPA FY22 strategy by joining CARMA Risk Pool
Allocated worker’s comp premium to other funds (saving $105k Gen Fund) Utility Costs
• Innovation >> Environmental Sustainability & Cost Savings >> City Services • Includes the electricity utility savings from the senior & community center energy CIP projects ($770k FY23, $800k FY24, avg $1.2M avg per year over 20 years) • +6% estimated increase for water and gas utility costs Includes $211k vehicles – program includes leasing & vehicle auctions Transfer – FY23 excludes $500k budget transfer to storm water fund • Included in FY24 and beyond
28 Unfunded aging or new infrastructure
(e.g. performing arts center, public safety buildings,
storm drain system)
Operational costs of new/expanded infrastructure
Any pension costs due to future CalPERS Board
decisions
COVID continues to improve
Potential Impacts Not Included
29 Potential Budget Strategies
Date $ Million Source & Consideration
Future Deficit Reserve $1.45M General Fund prior year savings FEMA Reimbursement $0.6M FEMA COVID Reimbursement. 6 claims pending final review ($0.6M), all projects ($1.2M)
$2.0M Subtotal One-Time Sources
General Fund PERS Balance $0.9M General Fund FY21 surplus ~50% of Bartel actuarial recommendation. Uses Gen. Fund balance for 3 years, then use Pension 115 Trust
Property Tax $0.1M Enhance 4% assumption given high $ transactions Gas Tax Offset to General Fund $0.1M Offset General Fund eligible costs to Gas Tax Fund $1.1M Subtotal On-going
Master Fee Study TBD Update and new fees, review billing and overhead rates, review cost allocation to enterprise funds
Fiscal Policies & Strategies TBD Enhance data-driven and responsiveness ARPA TBD Consider program re-allocation in budget development 30 ARPA Investment Areas
31 ARPA Investment Areas (con't)
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Consider re-allocation of funds for example to enhance assistance to businesses, unhoused, beautification effort such as services for illegal dumping, and/or staffing costs to deliver housing programs & services.
32 Possible Strategy includes 3 main components:
Pension Section 115 Trust – “115 Trust”
• Established irrevocable trust on June 30, 2021 @ $33.9M • FY22 first full year of investment, with moderate risk strategy of 5-years, 3%-6% earnings goal General Fund PERS Balance – on the balance sheet
• FY21 Surplus, City set aside another $2.8M on the balance sheet Bartel Actuary enlisted to conduct City pension actuarial reports and develop funding strategies • CalPERS FY21 investment return 21% versus 6.8% assumed (discount rate) • January 2022 Bartel published City report with the CalPERS 21% investment return, 6.8% discount rate and 115 Trust at 4%
• Determines that the 115 Trust will stabilize future City pension impacts on the budget • Recommends withdrawing from the 115 Trust starting in FY23 and aligns withdrawals with Milpitas unfunded liability payments through 2037
Proposal
Conservatively implement 50% of actuarially determined funding Use the Gen Fund PERS Balance ($2.8M) over 3 years (or $0.9M/yr), prior to using 115 Trust Advantages: allows 115 Trust to accrue investments earnings for 4 years, then begin withdrawal in year 5 Pension Trust & General Fund PERS Balance
33 Pension Reserve Balances
Footer Here
Pension 115 Trust Balance Sheet
34 Bartel Report – Misc Pension Unfunded Liability
35 Bartel Report – Safety Pension Unfunded Liability
36 Bartel Report – Misc Funded Status - Improving
37 Bartel Report – Safety Funded Status - Improving
38 Bartel Report – Misc % of Payroll – peak 2030
39 Bartel Report – Safety % of Payroll – peak 2032
40 Bartel Report – 115 Trust Misc Balance – through 2042
41 Bartel Report – 115 Trust Safety Balance – through 2042
42 Reserve Policy & General Fund Balances
Pension 115 Trust Balance Sheet
43 Reserve Survey
FY2019-20 Audited Financial Statements
44 Key Accomplishments
(July-Dec 2021) &
Workplan Items
(Jan-June 2022)
by City Service Areas
45 City Service Area (CSA)
Ashwini Kantak
Assistant City Manager
Steven G. McHarris
City Manager
Walter C. Rossmann
Deputy City Manager
Community
Development
Community
Services &
Sustainable
Infrastructure
Leadership &
Strategic Support
Public
Safety
Building Safety and
Housing
Economic Development
Engineering (Land Dev.,
Traffic)
Fire Prevention
Planning
City Clerk
City Manager’s Office
Finance
Human Resources
Information Technology
Police
Fire (Operations)
Engineering (Design and
Construction; Traffic)
Public Works
Recreation and Community
Services
Community
Development
47 Community Development –
Key Accomplishments
• Building Safety and Housing
1. Continued to provide a high level of customer service for permit activities - issued 2,233 building permits; conducted 8,403 building inspections; revamped online permits and streamlined inspection process
2. Conducted extensive analysis and community outreach, developed recommendations for Council consideration, and received Council direction for City-owned South Main Street properties
3. Continued to collaborate with the County and non-profits on various services for the unhoused; continued weekly mobile shower and laundry services
4. Council approved amendments to the Affordable Housing Ordinance to further clarify and strengthen policies related to affordable housing
5. Coordinated with Santa Clara County Housing Authority and property owner to provide information on available housing options for Sunnyhills residents
6. Responded to 335 code enforcement customer service requests to enhance residential and business neighborhoods
48 Community Development –
Key Accomplishments
• Economic Development
1. Continued Economic Development Strategy implementation (yr. 2) w/COVID-19 business assistance, attraction/retention, diversifying the tax base and workforce development
2. Presented Fiscal Benefits of Employment Lands Study Phase I to preserve and protect commercial property located in the Innovation District & MMSP.
3. Completed COVID-19 Workforce Recovery Program Phase I resulting in career assessment, navigation and counseling services for Milpitas residents.
4. Launched International Trade & Commerce/Storefront Improv ement Grant Programs.
5. Implemented Council approved American Rescue Plan Act (ARPA) Programs
6. Hosted 5th Annual Manufacturing Day in partnership with the Economic Development and Trade Commission, Milpitas
Unified School District & advanced manufacturing businesses; over 250 participants.
49 Community Development –
Key Accomplishments
• Engineering (Land Development & Traffic Sections)
1. Successfully completed the annual and 5-year FEMA CRS audits and recertification. Milpitas remains a CRS Class 7 providing a 15% reduction in flood insurance premiums.
2. Completed required annual inspections and certification of installed storm water treatment devices, and actively enforce program requirements.
3. Provided timely development review services with most initial permit and plan reviews within 30 days and 2nd reviews within 15 days.
4. Continued updating the City’s GIS systems to accurately reflect changes in the City infrastructure.
5. Successfully completed annual assessments for the City's Landscape Lighting Assessment Districts.
6. Completed Community Facilities District annexations for several private development projects.
50 Community Development –
Key Accomplishments
• Fire Prevention
1. Implemented on-line electronic plan review submittals and associated billing specifically for Fire Construction Permits
2. Initiated enhancements to the Fire Prevention Division database in order to track and manage performance measures
3. Provided timely inspection services with a minimum 95% of fire inspections (Fire Life-Safety / Fire Protection / Hazardous Materials) on-boarded / prescheduled / and conducted by staff within 5 days of their initial requests
4. Developed a customer satisfaction survey program for developers, contractors, and the business community at large
5. During the COVID-19 Pandemic, completed all applicable annual state-mandated fire code permit maintenance inspections
51 Community Development –
Key Accomplishments
• Planning
1. With community input and Council direction, completed the draft Milpitas Metro Specific Plan (final adoption expected in late summer 2022)
2. Developed tools such as the Development Review Handbook and Accessory Dwelling Unit (ADU) Toolkit to simplify
planning permit process
3. Completed Objective Design Standards to streamline
development review for mixed-use and multi-family housing in accordance with SB 330
4. Received $500K Regional Planning grant from MTC/ABAG to help cover cost of the Midtown Milpitas Specific Plan update (Gateway-Main St. Plan)
5. Received $1.85 million Measure B Grant from VTA to
implement the Milpitas OnDemand micro-transit pilot
program
6. Initiated work on a Zoning Ordinance amendment to
regulate food trucks
52 Community Development –
Key Workplan Items
• Building Safety and Housing
1. Develop and enhance reach codes through collaboration with Silicon Valley Clean Energy to reduce greenhouse gas emissions
2. Implement Safe ADU Legalization Program and ADU permit incentive program with ARPA funding
3. Implement ARPA rent relief and mortgage relief program
4. Develop and adopt FY2022-2025 Consolidated Plan and complete FY2022-2023 Annual Action Plan for Community Development Block Grant program
5. Implement Affordable Housing Ordinance amendments; create administrative guidelines and new below market rate unit selection methodology and process as part of implementation
6. Complete Assessment of Fair Housing, community engagement, and prepare draft of 2023-2031 Housing Element
7. Continue recruitment efforts for 10 vacant positions to maintain and enhance service delivery
53 Community Development –
Key Workplan Items
• Economic Development
1. ARPA Economic Vitality Implementation:
o Small Business Assistance Grant Program – Disburse approx. $750K in grants; o Hotels Assistance – Deploy $200K in grants;
o Workforce Development – Initiate programs with City & non-profit organizations;
o Chamber of Commerce – Disburse portion of grants based on performance metrics.
2. Complete Innovation District Phase II Study focused on Case Studies, Governance, Financing, Policies & Action Plan.
3. Implement COVID-19 Workforce Recovery Program throughMyPlan Career Accelerator Program offering Milpitas residentscareer assessment, navigation & counseling services.
4. Continue Int' Trade & Commerce & Storefront Improvement Grant Programs.
5. 1432 -1446 S. Main St. - Initiate possible site clean-up, explore tenant relocation grants, market & disposition of Parcel #1 per Council direction. 54 Community Development –
Key Workplan Items
• Engineering (Land Development & Traffic Sections)
1. Continue to efficiently complete private development plan reviews and permitting for work within the City’s Right of Way.
2. Continue efforts to reduce the dangers of flood hazards through participation in FEMA programs and storm water improvement projects.
3. Continue working with BAAQMD and City of San Jose staff to complete the regional long-term odor study.
4. Actively enforce the requirements of the City’s Municipal Regional Stormwater Permit (NPDES) to protect the City’s storm drain system and waterways.
5. Continue to issue encroachment permits for work within the City’s Right of Way to support private development projects.
55 Community Development –
Key Workplan Items
• Fire Prevention
1. Develop a schedule and provide the resources and time needed to train 3 additional fire investigators
2. Complete recruitment and training process to fill key vacancies: one (1) Deputy Chief – Fire Marshal, one (1) Assistant Fire Marshal, and one (1) Fire Inspector
3. Continue enhancements to the Fire Prevention Division Database in order to track and manage performance measures
4. Work closely with internal and external stakeholders to maximize revenue in effort to become more cost neutral
5. Implement On-Demand Mobile Fueling Operational Fire Permit Program
56 Community Development –
Key Workplan Items
• Planning
1. Complete the Milpitas Metro Specific Plan and EIR
2. Initiate a comprehensive Zoning Ordinance Update
3. Continue work on the Milpitas Gateway – Main Street Specific Plan
4. Adopt Housing Opportunity Overlay Zone (funded by $300K REAP Grant)
5. Implement PlanCheck and BusinessReady on-line tools at Front Counter
6. Implement the Milpitas OnDemand micro-transit pilot program
7. Implement permanent outdoor dining permit program
Leadership and
Strategic Support
58 Leadership & Support Services–
Key Accomplishments
• City Clerk
1. Worked with the City Attorney's office on the Open Government Ordinance to align with current City practices and State law.
2. Led the Public Record Request process and coordinated responses to 116 requests
3. Supported 14 Regular and Special City Council meetings; managed 158 agenda reports and prepared minutes
4. Managed the Commission recruitment and appointment process for 12 Commissions, two Task Forces, and one Oversight Committee
5. Initiated recruitment of key staff position
Public Records Act
59 Leadership & Support Services–
Key Accomplishments
• City Manager's Office
1. Council approval of a comprehensive $16.7 million ARPA Investment Plan that provides relief to Milpitas residents and businesses and funding for City services and infrastructure
2. Continued to lead the Emergency Operations Center and provide direction related to the evolving pandemic situation and public health orders
3. Supported prioritization process of 148 individual Council item requests
4. Led inter-departmental efforts to address affordable housing and unhoused services, legislative updates, Main Street Revitalization, and various programs and long-range plans
5. Implemented launch and initial rollout of the new Community Mark, developed through extensive community engagement, and approved by the Council
6. Filled two key executive positions – Police Chief and Information Technology Director
7. Increased community and employee engagement through digital and traditional channels
60 Leadership & Support Services–
Key Accomplishments
• Finance
1. Developed ARPA procedures and procurement to support implementation of the ARPA Investment Plan
2. Implemented Measure F Oversight Committee & Board recruitment
3. Developed and implemented COVID Fiscal Strategies
4. Implemented Pension 115 Trust investments and quarterly reporting
5. Processed $1.2M of FEMA COVID related cost claims, with $600,000 pending final review
6. Applied for State water utility financial grant related to COVID impacted customers balances
7. Improved cashflow and investment management, resulting in $35M moved from LAIF into better performing, managed investment portfolio.
8. Streamlined procurement and fleet auction program
61 Leadership & Support Services–
Key Accomplishments
• Human Resources
1. Implemented automated onboarding process
2. Completed a citywide Training Needs Assessment; developed and began implementation of a training program based on the assessment
3. Successfully implemented a citywide COVID-19 vaccine mandate
4. Collaborated with hiring managers to successfully fill 63 positions
5. Collaborated with departments and labor groups to update 11 City policies and entered into 24 Side Letters of Agreement
6. Implemented process improvements for personnel changes and integrated deadlines with the Pay Period schedule
7. Switched COBRA and Flexible Spending Account plan provider to increase customer service levels
62 Leadership & Support Services–
Key Accomplishments
• Information Technology
1. Supported implementation of new systems to improve
delivery of critical public safety services (New Police Records Management and Electronic Citation System)
2. Implemented several measures to strengthen cybersecurity - Network Threat Detection system, User training program, enable secure multi-factor user authentication
3. Implemented GIST 2.0 Web GIS application to share GIS data across various departments
4. Developed a streamlined ARPA web portal to manage
applicants and ensure transparency on all Milpitas ARPA programs
5. Provided technical support for 79 Hybrid/Virtual Meetings allowing enhanced public participation
63 Leadership & Support Services–
Key Workplan Items
• City Clerk
1. Complete City Commission Liaison/Chair & Vice
Chair Training
2. Complete an update to the Records Retention
Schedule
3. Implement an automated Public Records Request
(PRA) System
4. Continue to manage the Conflict of Interest
and Candidate and Officeholder Campaign Filings
5. Complete recruitment for critical vacant position
64 Leadership & Support Services–
Key Workplan Items
• City Manager's Office
1. Continue to support the Council in key policy decisions and prioritization
2. Guide the FY 22-23 Budget process, including Council and community engagement
3. Continue to work closely with the City Attorney on all legal matters
4. Continue to guide and provide direction to departments on key programs, initiatives and City Council prioritized workplan items
5. Continue to lead the Emergency Operations Center and guide the COVID response effort
6. Continue to work with departments on identifying and seeking grants
7. Continue to expand community and employee engagement platforms; including ongoing improvements to the City website, intranet, and social media platforms
65 Leadership & Support Services–
Key Workplan Items
• Finance
1. Solicit community, Council, and staff input to develop FY2022- 2023 balanced budget and 10-year Forecast
2. Support ARPA program launch and implementation – such as ADU, economic development, community services, parks and public safety
3. Fiscal assistance for major projects including: Transit Area Specific Plan (future Milpitas Metro), moderate income housing, energy sustainability capital projects, labor negotiations staffing, solid water franchise, CSCDA, Milpitas water rate study
4. Support water utility customers through COVID recovery and restoring water shut-off program and/or repayment program
5. Develop and update fiscal policies
6. Recruitment of staff and succession planning
66 Leadership & Support Services–
Key Workplan Items
• Human Resources
1. Continue implementation of NeoGov software and revamp the performance evaluation process
2. Complete RFP and enter into master contract(s) for
temporary staffing services
3. Issue RFP for Human Resources Information System
4. Complete Employee Engagement Survey to determine levels of employee engagement, review key driver analysis to
identify strategies to improve engagement
5. Update and Modernize Personnel Rules
6. Implement Spring Wellness Challenge
7. Update Recruitment marketing materials/ Leverage Social Media including development of recruitment video
8. Conduct employee recognition event(s)
67 Leadership & Support Services–
Key Workplan Items
• Information Technology
1. Continue to implement additional cybersecurity measures (New Endpoint Detection and Response system)
2. Implement City Hall Technology Improvements to better support a hybrid Council meetings and a hybrid work
environment (Council Chamber technology upgrade
assessment, Conference room technology)
3. Implement Office 365 Feature Enhancements to improve functionality and efficiency (Audio Conferencing, Mobile Device Management)
4. Refresh maps in public safety mobile vehicles to make the latest maps available to Police and Fire staff
5. Support a functionality assessment of the City’s website to prepare for a redesign
6. Support implementation of a new Public Records
Management System
Community
Services and
Sustainable
Infrastructure
69 • Engineering (Design & Construction and Traffic Sections)
1. Started and actively manage $40M in Council approved capital and other projects.
2. Initiated the Council approved traffic calming program using mobile speed feedback equipment.
3. Brought for Council approval the update to the Parks & Recreation Master Plan.
4. Completed update and improvement to Creighton Park.
5. Initiated McCandless Park Phase 1 construction.
6. Continued work on the Pedestrian, Trails, and Bicycle Master Plan.
7. Initiated ADA assessment of City infrastructure and
programs.
8. Successfully backfilled vacant positions for Associate and Junior/Assistant Engineer positions.
Community Svc & Sustainable
Infrastructure Key - Accomplishments
70 • Public Works
1. Implemented Council approved Energy and Water Savings program measures for water meter, water fixtures, and lighting
2. Started construction of Main Lift Emissions Control Project
3. Implemented Council approved water conservation measures and programs to meet conservation targets per State and City Ordinance.
4. Implemented Council approved dumpster days and Pilot voucher program for solid waste.
5. Implemented Council approved Street Sweeping Pilot Program.
6. Completed Upgrades to Advanced Traffic Management System facility.
7. Completed leak detection of 25 miles of underground waterlines in the City.
Community Svc & Sustainable
Infrastructure - Key Accomplishments
71 • Recreation and Community Services
1. Implemented multiple COVID-19 response services and programs including Testing Sites, Vaccination Clinics, Mental Health Townhalls, department-staffed Social Services Hotline, and supported other City COVID-19 efforts.
2. Began implementation of the Council approved Recreation Cost Recovery Policy.
3. Finished first full cycle of the Council approved Milpitas Assistance Program (MAP) with 375 households currently eligible for benefits.
4. Implemented disbursement of ARPA dollars to 217 MAP households, doubling the water utility subsidy amount available to Milpitas Residents.
5. Created and executed multiple community events both virtual and in person such as 4th of July, Lunar New Year, Pumpkins in the Park, and Holiday Magic on Main Street.
6. Provided continuity of services to the community through the constantly changing environment of COVID with services provided virtually, outdoors, in-person and socially distanced, and drive throughs.
Community Svc & Sustainable
Infrastructure - Key Accomplishments
72 • Engineering (Design & Construction and Traffic Section)
1. Complete backfill of vacant positions in Design & Construction.
2. Complete major Capital Projects for Station 2, McCandless Park, Street Resurfacing.
3. Assist Valley Water with the completion of flood control projects to Calera, Lower Penitencia, and Berryessa Creek
4. Initiate $6.8M in new Capital Projects including LLMD improvement, Dempsey Road water line replacement, and Citywide Traffic Modeling and Safety Assessment.
5. Complete Plan-Line study for Costs Street.
6. Anticipate starting feasibility studies to add pedestrian bridges at light rail platforms.
7. Coordinate with VTA to initiate the Caltrans Project Approval and Environmental phase for the widening of Calaveras bridge.
Community Svc & Sustainable
Infrastructure - Key Workplan Items
73 • Public Works
1. Finalize Financial Utility Master Plan and Adopt Final Master Plans for, Water, Sewer, and Stormfor Council consideration.
2. Finalize Implementation of Council approved energy and water savings projects.
3. Complete update of the City’s Climate Action Plan for Council consideration.
4. Sequence and schedule maintenance activities to achieve 60% completion rate of preventive maintenance vs. reactive maintenance.
5. Evaluate street sweeping pilot program locations and report to Council.
6. Finalize Community Odor program and coordinate with BAAQMD ongoing Odor Study for Council discussion.
7. Complete construction of the emissions odor control project at Main Lift Pump Station.
8. Report to Council on various Solid Waste pilots as part of the budget process.
Community Svc & Sustainable
Infrastructure - Key Workplan Items
74 • Recreation and Community Services
1. Create, market and implement Council approved ARPA funded programs including mental health services, childcare, community events, and Main Street revitalization
2. Continue to support CSA related CIP projects for facility improvements, park safety projects, and new Park design and related grant obligations
3. Execute new Public Art Projects including the Council approved Mural Program
4. Lead and execute community events, flag raisings, and support community revitalization efforts on Main Street.
5. Launch the Alviso Adobe's "If These Walls Could Talk" Docent and Visitor program at Alviso Adobe Park
6. Update and execute Joint Use Agreements (JUA) with the Milpitas Unified School District for Indoor Facilities
Community Svc & Sustainable
Infrastructure - Key Workplan Items
Public
Safety
76 Public Safety – Key Accomplishments
• Police
1. Implemented an Employee Wellness application powered by Cordico
2. Deployed fifteen (15) grant funded AEDs making the lifesaving equipment immediately accessible to officers in the field
3. Hosted thirty-four (34) community engagement events including two (2) catalytic converter etching events and attended eleven (11) additional community events
4. Filled all but one vacancy of funded police officer positions
5. Obtained an FAA - Beyond Visual Line of Sight Waiver allowing our UAS pilots to conduct remote flights
6. Implemented a traffic citation diversion program for juveniles and seniors
7. Implemented a Juvenile Justice Referral Program designed to pair youth and their families with social services and other support services to minimize the youth's future involvement in the criminal justice system
77 Public Safety – Key Accomplishments
• Fire (Operations)
1. Completed annual physicals for all Operation Division personnel
2. Completed Firefighter and Firefighter-Paramedic
recruitment processes; Promoted two (2) Captains and six (6) Engineers; approved staff to serve in the Acting Capacity Program - (7) Engineers, two (2) Captains, and two (2)
Battalion Chiefs
3. Completed the citywide and most Department’s Continuity of Operations (COOP) Plan
4. Supported regional and statewide wildfire response by participating in four (4) OES Wildfire Deployments
5. Completed update of 20 Fire Department policies as part of Lexipol transition
78 Public Safety – Key
Workplan Items
• Police
1. Complete implementation of the Mark43 Records
Management System and Crossroads Accident Reporting
System
2. Transition from the Uniform Crime Reporting system to National Incident Based Reporting System. Identify a solution to run both systems concurrently, if possible
3. Ensure compliance with the Racial and Identity Profiling Act
4. Increase Dispatcher recruitment through in-person events, virtual events, and digital recruitment campaigns
5. Continue to prioritize community engagement and host a minimum of two (2) catalytic converter etching events
6. Conduct a comprehensive inventory of "military equipment" as defined by Assembly Bill 481; and create a tracking system to memorialize use of the equipment and develop a policy that meets legal mandates
79 Public Safety – Key
Workplan Items
• Fire (Operations)
1. Prepare for the deployment of an ambulance with two (2) Firefighter-Paramedics in order to provide patient transport capabilities.
2. Collaborate with IAFF Local 1699 on physical and mental wellness initiatives.
3. Complete the integration of the Intterra Data System into the City Geographic Information System (GIS)
4. Complete necessary recruitment and training process including hosting a joint Fire Academy to fill current and expected vacancies
5. Continue to implement the City Emergency Operations Plan (EOP) including the implementation of Emergency Management Multi- Year Training and Evaluation Plan (MYTEP) and development of additional annexes.
6. Continue to collaborate with Engineering and Public Works to ensure completion of Fire Department Capital Improvement Projects
Council Referrals
Requiring Additional
Funding and/or
Resources
81 Council Referrals – Prioritization Process
No. Item Name Date
Approved for 4 or
more hours of staff
time
Additional
Funding/ Resources
Needed
Potential
Funding
Source(s)
1. Building height limits near the hillside 1/11/2022 $120,000, supplemental
staffing
Community
Planning,
General Fund
2. Consider Community Museum and Park on Main Street
(Council approval to include in Specific Plan process)
2/2/2021 TBD TBD
3. Consider change in term limits for Mayor and
Councilmembers
3/16/2021 Approx. $70,000
per ballot measure;
may require 2
separate measures
General Fund
4. Consider placing a measure on the ballot to change the directly elected Mayor to a rotational at-large position 3/16/2021 Approx. $70,000 General Fund
5. Include a bust of Maria Lemery and a picture of Albert Vogel Sr. on the existing Senior Center Thriving Legacy Mural 1/11/2022 $19,000 Public Art Fund
82 Council Referrals – Prioritization Process
No. Item Name Date
Approved for 4
or more hours
of staff time
Additional Funding/
Resources Needed
Potential
Funding
Source(s)
6. Murals for the pillars on Main Street 1/11/2022 $180,000 (could be reduced to $80K if the
City’s Mural Program is
suspended for 2 years)
Public Art
Fund
7. Outdoor Music Ordinance 1/11/2022 $20,000 in supplemental staffing costs
Community
Planning,
General Fund
8. Park Champions 1/11/2022 $17,000 General Fund
9. Railroad Quiet Zone (identified in the
unfunded projects list of the FY 2022-26
Adopted CIP)
8/9/2021 $300,000 for initial study,
$24 to $41 M for
improvements at 10
crossings
Grants,
General Fund,
Impact Fees
83 Council Referrals – Prioritization Process
No. Item Name Date
Approved for 4 or
more hours of staff
time
Additional Funding/
Resources Needed
Potential
Funding
Source(s)
10. Roller Skate Summer Program (partial funding
needed in FY 2022-23 for summer 2023)
1/11/2022 $152,000-$191,000 General Fund,
Rec. Fees
11. Rose Garden with a Children’s Memorial Site
(will be discussed as part of CIP)
8/9/2021 $300,000 one-time;
up to $10,000 in
ongoing
maintenance
Midtown Park
Fund, General
Fund
12. Signs in key areas of the City to welcome
people to Milpitas (could be incorporated
into the CIP)
8/9/2021 TBD General Fund,
Impact Fees,
Grants
13. Sliding scale permitting program for seniors
and low-income residence for necessary
safety renovations
8/9/2021 $20,000 for first
year, staff time TBD
General Fund
84 List of Other Council Referrals
No. Item Name Date
Approved for 4 or
more hours of staff
time
Additional Funding/
Resources Needed
Potential
Funding
Source(s)
14. Parks Maintenance at Level A 10/19/2021 $1.2 million (26 parks); $300,000 (10
parks)
General Fund;
Community
Facilities
District (CFD)
15. Streetscape Maintenance Level 1 10/19/2021 $320,000 General, LLMDs, CFD
16. Pickleball Pilot Project (to be discussed during
CIP Study Session)
Council discussion on
12/14/2021
TBD General Fund
17. Police Substation on City owned Parcel 2
(could be discussed during CIP Study Session)
12/7/2021 TBD Impact Fees
85 Feedback
FY23 Budget Study Session
Jan. 25, 2022
86 Thank you
FY23 Budget Study Session
Jan. 25, 2022
87 City of Milpitas
455 E. Calaveras Blvd., Milpitas, CA 95035
www.ci.milpitas.ca.gov
(408) 586-3000
88 Bartel Report –Misc UAL payments
89 Bartel Report –Safety UAL payments
90 Bartel Report –Target % of Payroll (Safety)
91 Bartel Report –Target % of Payroll (Misc)
SPECIAL MEETING OF THE
MILPITAS CITY COUNCIL
January 25, 2022 Milpitas City Council Agenda Page 1
AG E N D A
TUESDAY, JANUARY 25, 2022
MILPITAS, CA
5:30 PM
For assistance in the following languages, you may call:
Đối với Việt Nam, gọi 408-586-3122
Para sa Tagalog, tumawag sa 408-586-3051
Para español, llame 408-586-3232
CITY OF MILPITAS - NOTICE OF SPECIAL MEETING
NOTICE IS HEREBY GIVEN that a Special Meeting of the Milpitas City Council will be held at 5:30 p.m. on January 25, 2022, via teleconference /Zoom webinar only (no physical meeting space).
You may watch the Council meeting without providing public comment by accessing it via links here.
Meeting shall be livestreamed - Go to:
Facebook: https://www.facebook.com/CityofMilpitas/
YouTube: https://www.ci.milpitas.ca.gov/youtube
Web Streaming: https://www.ci.milpitas.ca.gov/webstreaming
PUBLIC COMMENT INSTRUCTIONS
Oral public comments may be provided live during the City Council meeting by first registering for the zoom meeting in advance by providing email address (not disclosed) and a name. To minimize technical difficulties, please make sure that you have the latest version of Zoom Meetings. Here is the link to register for this meeting only:
https://ci-milpitas-ca-gov.zoom.us/webinar/register/WN_gDXgIy64Ru6NgBnhHKU0HA A link will be sent to you to join the City Council meeting in order to give your comments. All registered meeting attendees who wish to speak must click on the “raise hand” icon when the Mayor calls for public comments. If participating by calling in on your phone, dial *9 to use the “raise hand” feature, and when you are called upon, hit *6 to unmute your phone. Your phone number will be displayed in the live meeting. The Mayor or staff will call the speakers to begin.
All comments provided shall be limited to three minutes or less as determined by the Mayor. All members of the public will be limited to one comment per agenda item, and one comment for non-agenda items. online written comment form previously used is no longer available for public comment.
MILPITAS CITY COUNCIL CODE OF CONDUCT
Be respectful and courteous (words, tone, and body language). Model civility.
Avoid surprises.
Praise publicly and criticize privately.
Focus on the issue, not the person.
Refrain from using electronic devices while on the Council dais. Disclose conflicts of interest and affiliations related to agenda items. Separate governing from campaigning.
The Council speaks with one voice after making policy on issues. Respect the line between policy and administration.
Council will hold one another accountable to comply with this Code of Conduct.
1 January 25, 2022 Milpitas City Council Agenda Page 2
CALL MEETING TO ORDER by Mayor and ROLL CALL by City Clerk
PLEDGE OF ALLEGIANCE
APPROVAL OF AGENDA
PUBLIC FORUM
Those interested are invited to address the City Council on the agenda item listed below only, by using the “raise hand” in the zoom webinar online (see instructions on page one (1). Speakers may state their name and city of residence for the record, and limit spoken remarks to three minutes, or less, at the discretion of the Mayor.
ANNOUNCEMENTS
ANNOUNCEMENT OF CONFLICT OF INTEREST AND CAMPAIGN CONTRIBUTIONS
READING OF THE CITY COUNCIL CODE OF CONDUCT
APPROVAL OF AGENDA
AGENDA ITEMS
1. Receive a Staff Presentation on the Preliminary FY 2023-32 Ten-Year General Fund Financial Forecast and Provide Feedback on Desired Service Levels to Inform the FY 2022-23 Budget Development (Staff Contacts: Ashwini Kantak, Assistant City Manager, 408-586-3053 and Lauren Lai, Director of Finance, 408-586-3111)
Recommendations: Receive a staff presentation on the Preliminary FY 2023-32 Ten-Year General Fund Financial Forecast and provide feedback on desired service levels to inform the FY 2022-23 Budget development.
ADJOURNMENT
KNOW YOUR RIGHTS UNDER THE OPEN GOVERNMENT ORDINANCE
Government’s duty is to serve the public, reaching its decisions in full view of the public. Commissions and other City agencies exist to conduct the people’s business. This ordinance assures that deliberations are conducted before the people and City operations are open to the people’s review. For more information on your rights under the Open Government Ordinance or to report a violation, contact the City Attorney’s office at Milpitas City Hall, 455 E. Calaveras Blvd., Milpitas, CA 95035 e-mail:[email protected] / Phone: 408-586-3040
The Open Government Ordinance is codified in the Milpitas Municipal Code as Title I Chapter 310 and is available online at the City’s website www.ci.milpitas.ca.gov by selecting the Milpitas Municipal Code link.
Materials related to an item on this agenda submitted to the City Council after initial distribution of the agenda packet are available for public inspection at the City Clerk’s office at Milpitas City Hall, 3rd floor 455 E. Calaveras Blvd., Milpitas and on City website. City Council agendas and related materials can be viewed online: www.ci.milpitas.ca.gov/government/council/agenda_minutes.asp (select meeting date)
APPLY TO SERVE ON A CITY COMMISSION
Commission application forms are available online at www.ci.milpitas.ca.gov or at Milpitas City Hall.
Contact the City Clerk’s Office at 408-586-3001 for more information.
2 January 25, 2022 Milpitas City Council Agenda Page 3
If you need assistance, per the Americans with Disabilities Act, for any City of Milpitas public meeting, please call the City Clerk at 408-586-3001 or send an e-mail to [email protected] prior to the meeting. You may request a larger font agenda.
3 CITY OF MILPITAS
AGENDA REPORT
(AR)
Item Title: Receive a staff presentation on the Preliminary FY 2023-32 Ten-Year General Fund Financial Forecast and provide feedback on desired service levels to inform the FY 2022-23 Budget development
Category: Leadership and Support Services
Meeting Date: 1/25/2022
Staff Contact: Ashwini Kantak, Assistant City Manager, 408-586-3053 Lauren Lai, Director of Finance, 408-586-3111
Recommendations: Receive a staff presentation on the Preliminary FY 2023-32 Ten-Year General Fund Financial Forecast and provide feedback on desired service levels to inform the FY 2022-23 Budget development.
Background:
In January, the Council kicks-off the annual budget process with the preliminary budget study session. At the study session, staff presents the preliminary ten-year General Fund Financial Forecast, the budget community engagement plan, reports on accomplishments and workplans, and requests feedback on prioritization of Council referrals.
Analysis:
Consistent with past years, staff will set the stage of the Preliminary FY 2022-23 Budget Study Session with the Preliminary FY 2023-32 Ten-Year General Fund Financial Forecast (see attached). Based on new revenue information, labor contracts, and various funding and expenditure strategies, Staff does not foresee a reduction in the current service level. Staff projects a balanced budget for FY 2022-23 and thereafter until the anticipated Measure F sunset. After the presentation of the Forecast, staff will summarize budget strategies taken so far and currently contemplated to provide funding options to restore and/or enhance services.
Staff will also present Council with topline results from the 2022 community survey conducted by Fairbank, Maslin, Maullin, Metz and Associates (FM3) and seek feedback from the Council on desired service levels.
This will inform the development of a proposed balanced budget for FY2022-23. The Study Session is not intended to discuss specific budget proposals or position reductions but is in fact a key first step in the budget process to allow staff to better understand priorities from the Council and community and to develop a balanced budget that is responsive to these needs.
Council requests, which require funding and/or resources and were prioritized during the August 5, 2021, and January 11, 2022, Council prioritization meetings, will also be presented for any additional Council input. Staff will consider information from the community surveys and meetings, feedback from the Council on priorities, and resource and funding needs from departments to develop the Proposed FY 2022-23 Budget and will provide an update as part of the Proposed FY 2022-23 Budget Study Session in May.
Fiscal Impact:
This is a discussion of the preliminary FY2023-32 Ten-Year General Fund Financial Forecast to inform the FY2022-23 budget development. No fiscal impacts.
4 California Environmental Quality Act:
This item is not a Project under CEQA in accordance with CEQA Guidelines Section 15061(b)(3) (Common Sense Exemption) as it can be seen with certainty that a general discussion of funding priorities by the City Council will not have a significant effect on the environment. Further, the item is also not a Project pursuant to CEQA Guidelines Section 15378(b)(2) as an administrative activity which is defined in the CEQA Guidelines to include the purchase of supplies and personnel related actions. It is further exempt under CEQA Guideline 15378(b)(4) as it is a government fiscal activity that does not involve a commitment to any specific project which may result in a potentially significant physical impact on the environment. Although the use of funding will be discussed for various potential projects, future environmental analysis will be conducted for the various potential projects prior to the City making any commitment or approval of any project, or it is covered by the CEQA Guideline 15061(b)(3) and/or 15378(b)(2).
Recommendations:
1. Receive a staff presentation on the Preliminary FY 2023-32 Ten-Year General Fund Financial Forecast and provide feedback on desired service levels to inform the FY 2022-23 Budget development Attachments:
1. Preliminary FY 2023-32 Ten-Year General Fund Financial Forecast
2. Community Survey Top Line Summary
5 6
1 Note: Telephone calls were conducted on landlines and cell phones.
Sample Universe Adult Residents in the City of Milpitas Total Interviews 693
Dates January 3-17, 2022
Contact Method
Data Collection Mode
Language English, Spanish, Vietnamese and Chinese
Margin of Sampling Error +/-4.0% at the 95% confidence level Online Survey
Telephone Calls
Telephone Calls
Email Invitations
Postcards
Survey Specifications
7 2
Preliminary Community Survey Results
83% are satisfied with the overall quality of life in Milpitas
91% describe Milpitas as “accepting”
86% believe Milpitas is safe
84% feel that different cultures are celebrated in
Milpitas
86% are proud to live in Milpitas
68% trust the City to plan for Milpitas’ future
8 3
Key Takeaways
Perceptions of life in Milpitas are very positive,
and consistent with 2021.
Large majorities continue to be proud to live in
Milpitas, and see it as accepting and safe.
However, opinions are more mixed as to whether
the City is “affordable.”
Just two in five now believe the City is growing
too fast (41%), while 45% think it is growing at
the right pace.
Police, 911 response, and infrastructure continue
to rate as top priorities.
9 4
Q11.
Next, I am going to ask you to imagine you are in charge of Milpitas’ City budget. Every year, the City needs to prioritize funding various services. For this exercise, assume you have $100 to spend on six priority areas. After I read you all of the priority areas, please tell me how many dollars out of 100 you would spend on each one, keeping in mind that the total must add up to $100.
Given a hypothetical $100 budget,
residents would prioritize public safety
with the largest share of their funds.
$22.50 $17.20 $16.60 $15.00 $14.70 $14.00
Public safety Neighborhoods
and housing
Economic
development
Environment Community
wellness
and open
space
Transportation
and transit
10