Milpitas City Council
April 19, 2022

1. PURPOSE

1.1. This Policy establishes the guidelines, criteria, and processes for naming City streets, parks, and other facilities.

1.2. This Policy is consistent with Milpitas Municipal Code, Title XI-1000 and Government Code Section 34093.

2. POLICY

2.1. The City shall have the sole authority and the City Council shall have the final authority to approve names of City Streets, Parks, and other Facilities.

2.2. The Planning Commission shall evaluate names of City streets, and shall make recommendations to the City Council.

2.3. The Parks, Recreation, and Cultural Resources Commission shall evaluate names of City parks and facilities, and shall make recommendations to the City Council.

2.4. Although the City will have full control and final decision-making authority on any names selected, public input will be received, and other names may be raised and requested to be considered by the City Council.

2.5. From time to time, the City Council shall approve names to be added to a list(s) of names suitable for streets, parks, and facilities.

2.6. No duplication of names within an asset type (i.e., park, facility, plaza) will be approved.

2.7. A deliberative process by City staff will be conducted to ensure that renaming of a street, park, and facility will not diminish the original justification for the name of the prior contributors. Parks and facilities named after individuals shall not be changed unless it is found that because of the individual’s character the continued use of their name would not be in the best interest of the community. Parks that have been named by deed restriction shall not be considered for renaming.

2.8. The following criteria and factors shall be considered with naming or renaming a street, park, or facility:

2.8.1. Neighborhood or geographical identification, such as street, school, or other descriptive names;

2.8.2. Natural or geological features of the area;
Policy No:

Click or tap here to enter
text.

CITY STREETS, PARKS AND

FACILITIES NAMING POLICY
Effective Date:
2/15/2022
Revision No:
1 Policy Administrator:

Recreation and Community Services

Next Review Due:

As needed
Related Policies and
Procedures:

Incorporates and
replaces SOP 1.3
Approved by:

Click or tap here to enter text.

Council meeting date, agenda item #, and
vote

Date Approved:
2/15/2022
524
Item # 20.

CITY OF MILPITAS
Revision Date
Original 04/21/2006

CITY STREETS, PARKS, AND FACILITIES NAMING POLICY / POLICY #

2.8.3. Historical or cultural significance: the name of a historical figure can be considered, if the figure had a significant and extraordinary historical influence on the area, state, national, or international level;

2.8.4. The name of any person or family that has made a significant impact in the community and/or in development of the street, park, or facility;

2.8.5. An individual or organization that contributed significantly to the acquisition or development of the park or facility to be named. This can include either a deed or substantial monetary contribution, or contribution toward the acquisition, and/or development of the park of facility. (Naming rights are not guaranteed if the donation is a dedication as required by the subdivision.)

2.8.6. The articulated preference of residents of the neighborhood surrounding the street, park, facility;

2.8.7. A name should represent community values and consider future generations and ethnic diversity;

2.8.8. If the name of an individual or family is to be considered, the use of such name shall have the approval of the individual (or his/her surviving family) or family when reasonably possible;

2.8.9. Avoid confusing or similar sounding names (Public Safety Dispatch test);

2.8.10. Avoid changing street names along any continuous alignment (Continuity test).

2.9. Naming of parks and facilities near schools shall be coordinated with the Milpitas Unified School District as much as possible.

2.10. All naming and/or renaming of a park or facility will be set forth by a Council Resolution.

2.11. Should policy conflict with any City Ordinance, Code or other laws and regulations, the respective City Ordinance, Code or other laws and regulations shall prevail.

3. PROCEDURE

3.1. Maintaining a List of Names for Naming Streets, Parks, and Facilities.

3.1.1. The Recreation and Community Services Department shall maintain a List of Names for Naming Streets, Parks, and Facilities.

3.1.2. As needed, the Director of Recreation and Community Services shall bring additions to the List of Names for Naming Streets, Parks, and Facilities to Council for approval at any regular or special meeting.

3.2. Naming of Streets, Parks, and Facilities

3.2.1. City street naming recommendations shall be brought to the Planning Commission for recommendation to the City Council and may be considered at any regular or special meeting.

3.2.2. City park and facility naming recommendations shall be brought to the Parks, Recreation, and Cultural Resources Commission for recommendation to the City Council and may be considered at any regular or special meeting.

3.2.3. Naming recommendations shall be from the City Council approved List of Names available from the Director of Recreation and Community Services. 525
Item # 20.

CITY OF MILPITAS
Revision Date
Original 04/21/2006

CITY STREETS, PARKS, AND FACILITIES NAMING POLICY / POLICY #

3.3. Proposed names for new City streets, parks, and facilities should be considered during the entitlement process prior to the final map approval.

3.4. Names being considered for streets shall be reviewed by the City and County emergency services dispatch and Post Office to discourage names that are too similar or confusing that may hinder emergency response; or are otherwise inappropriate for public safety purposes.

3.5. The following City Departments will contribute to the establishment and maintenance of databases for named streets, parks, and facilities:

3.5.1. Information and Technology Department – Maintain database of all City assets (streets, parks, and facilities)

3.5.2. Recreation and Community Services Department – Maintain Naming Lists, information about historical references, person’s full names, ancestry, dates of birth and death, and other information of interest about the person or group, and the significance of their name to Milpitas’ history and/or to that particular named asset.

3.5.3. Planning Department – Coordinate Street Naming related to new development, prepare, and maintain GIS databases for mapping of new facilities.

3.6. Renaming of a street, park, or facility

3.6.1. The renaming of a street, park, or facility may be initiated by City Council, City Commission, City staff, a group, or individuals.

3.6.2. The initiation of renaming by non-City organizations or individuals shall be made by participating during Public Forum at the appropriate advisory City Commission or City Council meeting.

3.6.3. The City Commission may place the request on the agenda for review of the proposed name(s), taking of public comment, and discussion of the renaming proposal consistent with this Policy.

3.6.4. When a City Commission considers the renaming proposal of a street, park, or facility, staff shall notify the surrounding neighborhood in a ¼ mile radius.

3.6.5. If the City Commission supports the renaming proposal, it will make a recommendation to the City Council for Council consideration.

3.7. The name of a park or facility that is sold, transferred to non-city ownership, or otherwise deemed to no longer be a City of Milpitas property, should be transferred to another location eligible for naming. Should there not be an appropriate location, the name shall be added to the appropriate Naming List for future use.

526
Item # 20.

City of Milpitas
Facilities, Streets & Park Naming Subcommittee
Naming List – US Presidents
Approved for: Streets & Parks

PRESIDENT EXISTING STREET LOCATION

1. George Washington Washington Dr./N. Milpitas Blvd.

2. John Adams Adams Ave./N. Temple

3. Thomas Jefferson

4. James Madison

5. James Monroe

6. John Quincy Adams Adams Ave./N. Temple

7. Martin Van Buren

8. William Henry Harrison

9. John Tyler

10. James K. Polk

11. Zachary Taylor Taylor Dr./Conway St.

12. Millard Fillmore

13. Franklin Pierce

14. James Buchanan

15. Abraham Lincoln

16. Andrew Johnson

17. Ulysses S. Grant

18. Rutherford B. Hayes

527
Item # 20.

PRESIDENT EXISTING STREET LOCATION

19. James A. Garfield

20. Chester Arthur

21. Grover Cleveland

22. Benjamin Harrison

23. Grover Cleveland

24. William McKinley

25. Theodore Roosevelt

26. William Howard Taft

27. Woodrow Wilson Wilson Way/N. Milpitas Blvd.

28. Warren G. Harding

29. Calvin Coolidge

30. Herbert Hoover

31. Franklin D. Roosevelt

32. Harry S Truman

33. Dwight D. Eisenhower

34. John F. Kennedy Kennedy Dr./Fanyon St.

35. Lyndon B. Johnson

36. Gerald Ford

37. Jimmy Carter

38. Ronald Reagan

39. George Bush

528
Item # 20.

PRESIDENT EXISTING STREET LOCATION

40. Bill Clinton

41. George W. Bush

42. Barack Obama

529
Item # 20.

City of Milpitas

Facilities, Streets & Park Naming Subcommittee

Naming List
–

Milpitas Historical Names

Approved for: Streets
, Parks, Facilities

NAME

SUGGESTED

BY

DEDICATION LOCATION

19 th

CENTURY

1. Charles Beverson

Commission: PRCRC

Milpitas Cattle Rancher/Dairy Farmer

2. Alfred Doten

Commission: PRCRC

Milpitas literary figure/author

3. Alfred French

Commission: PRCRC

Ran first hotel that brought tourism to Milpitas

4. JW Johnson

Commission: PRCRC

First Town
Constable

5. Augustus Rathbone

Commission: PRCRC

Augustus Rathbone Park

First Storekeeper

20 th

CENTURY

6. Chew Family

Naming Subcommittee

Part of Milpitas’ early agricultural history, the

Chew’s had 15 acres where they ran their Flower

Farm business

7. Albert Currlin

Commission: PRCRC

Dedication Plaque: Valley Health Center

One of the first Doctors in Milpitas

530
Item # 20.

NAME

SUGGESTED BY DEDICATION LOCATION

8. Sal Cracolice

Naming Subcommittee

Sal Cracolice Building (through June 2016)

Ran Milpitas’ first Pharmacy, started first Youth Center

9. E
rnestina Garcia

Commission: PRCRC

Civil Rights Activist

10. Joe House

Commission: PRCRC

Mayor (1974
–

1976)

11. Bob McGuire

Commission: PRCRC

Dedication Plaque: Comm
.

Center Amphitheater

Fir
st Parks and Recreation Director

Bob McGuire Park

12. Ray Madruga

Commission: PRCRC

Early Ironworker, invented “Milpitas Plow”

13. Mabel Mattos

NA

Street: Mattos Dr./Edsel

Bench/Farm Equipment: Alviso Adobe

14. Ford

Naming Subcommittee

15. Dick Delong

Commission: PRCRC

Street: Delong Dr./Tradezone Blvd.

16. Joe Smith

Commission: PRCRC

Street: Smith Ln./Pimentel Cir.

17. Rogers Family (Ben, Jim)

NA

Ben Rogers Park

18. Weller Family (Joseph, Abraham)

NA

Street: Weller Ln./N. Main St.
/
We
ller Elementary

19. Denny Weisgerber

NA

Denny

Weisgerber Community Room: Senior Center

21 st

CENTURY

20. Larry Voellger

Naming Subcommittee

Public Art Project Dedication: Higuera Adobe Park

Started Milpitas’ first Public art
Program (Art in Your Park)/

Long Serving
Arts Commissioner

531
Item # 20.

21. Jimmy Chamoures

Naming Subcommittee

Instrumental in the rebuilding of the Milpitas Post Newspaper in the mid 90’s/Started Milpitas Yellow Pages

532
Item # 20.

City of Milpitas
Facilities, Streets & Park Naming Subcommittee
Naming List – California Native Plants, Flowers, Trees
Approved for: Streets

1. Maple Maple Ave./N. Abbott Ave.

2. Paprika

3. Pomegranate

4. Terracotta Terracotta Ct./Dogwood Ct.

5. Beacon Beacon Dr./Canton Dr.

6. Chamise

7. Fern Family
a. Fernleaf Dr. Fernleaf Dr./ Sandisk Dr.

8. Snapdragon

9. Manzanita Manzanita Court/Blue Spruce Way

10. Poppy Family
a. Poppy Lane Poppy Ln./E. Calaveras Blvd.
b. Poppy Court Poppy Ct./Poppy Ln.

11. Sagebrush Sage Brush St./Milkweed

12. Finnis

13. Milkweed

14. Butterfly Weed

15. California Aster

16. Pacific Aster

17. Desert Holly

18. Coyote Brush

19. Chuparosa

20. Barberry

21. Goldenstar

22. Lily Family

23. Camas

24. Harebell

25. Berkeley Sedge

26. Anemone

27. Purple Owls Clover

28. Lilac

29. Redbud

30. Willow Willow Ave./N. Abbott Ave.

31. Rabbit Brush

32. Thistle Thistle Pl./Clover Cir.

33. Clarkia

34. Chinese Houses

35. Dogwood Dogwood Ct./Terracotta Ct.

NAME EXISTING STREET LOCATION
533
Item # 20.

36. Sacred Thorn

37. Dichondra

38. Shooting Star

39. Bleeding Heart

40. Candleholder

41. Lance Leaf

42. Cactus

43. Canyon Prince

44. Desert Tea

45. Stream Orchid

46. Rabbit Brush

47. Yerba Santa

48. Buckwheat

49. St. Catherine's Lace

50. Golden Yarrow

51. Lizard Tail

52. Fremontea

53. Bush Family

54. Bedstraw

55. Snapdragon

56. Sunrose Sunrose Ct./Joshu Tree Ct.

57. Toyon

58. Coral Bells

59. Alumroot

60. Cardinal

61. Bridget Bloom

62. Wooly Rose

63. Desert Lavender – “Lavender” Lavender Loop/Currant Rd.

64. Iris

65. Scarlet Gilia

66. Walnut Walnut Dr./N. Abbott Ave.

67. Chuparosa

68. Goldfields

69. Mallow Family

70. Tidy Tips

71. El Tigre

72. Sage Sage Ct/Tarob Ct.

73. Tiger Lily Tiger Lily St./Sunflower Ln.

74. Western Flax

75. Bitterroot

76. Cardinal Flower

77. Honeysuckle

78. Water Primrose

79. Lupine

NAME EXISTING STREET LOCATION
534
Item # 20.

80. Chamisso Bush

81. Catalina Ironwood

82. Laurel

83. Blazing Star

84. Wishbone Bush

85. Mustang Mint – “Mint” Mint Way/Cherry Cir.

86. Myrtle Myrtle Ln./Clover Cir.

87. Needlegrass

88. Beavertail

89. Pricklypear

90. Cactus

91. Clover Clover Cir/Myrtle Ln.

92. Redwood Sorrel

93. Palo Verde

94. Peony

95. Scarlet Bugler

96. Desert Bluebell

97. Fiesta Flower

98. Pine
a. Pinewood Way Pinewood Way/Fallen Leaf Dr.
b. Pinewood Court Pinewood Way/Pinewood Ct.
c. Pinehurst Court Pinehurst Ct./Tularcitos Dr.

99. Sycamore Sycamore Dr./Barber Ln.
100. Cottonwood Cottonwood Dr./Barber Ln.
101. Desert Peach
102. Desert Almond
103. Cherry Cherry Cir./Mint Way
104. Coffee Berry Coffee Berry Ln./Wild Rose Ln.
105. Red Berry Red Berry Ln./Sunflower Ln.
106. Lemonade Berry
107. Sugar Bush
108. Currant Family
a. Currant Currant Rd./Lavender Loop
109. Matilija Poppy
110. Wild Rose
111. Baja Rose
112. Chia
113. Sage Family
a. Sagemeadow Court Sagemeadow Ct./ Beresford Ct.
114. Mexican Elderberry
115. Checker
116. Catchfly
117. Grass Family

NAME EXISTING STREET LOCATION
535
Item # 20.

118. Goldenrod
119. La Luna
120. Aster Family
121. Clover Clover Cir & Clover Ct.
122. Southern Cattail
123. Sunflower Sunflower Ln./S. Main St.
124. Wild Grape
125. Joshua Tree Joshua Tree Cir./Lundy Rd.
126. Nightshade Nightshade Rd./Garden St.
127. Oak
a. Oakhurst Way Oakhurst Way/Sandhurst Way
b. Oak Ridge Road Oak Ridge Rd./Calaveras Blvd.

NAME EXISTING STREET LOCATION
536
Item # 20.

CITY OF MILPITAS

AGENDA REPORT
(AR)

Item Title: Approve Employment Agreement with, and Appoint Michael Mutalipassi to Serve as City Attorney (Staff Contact: Jeannine Seher, Human Resources Director, 408-586- 3086)
Category: Leadership and Support Services

Meeting
Date:
4/19/2022
Recommendation: Approve Employment Agreement with Michael Mutalipassi and appoint him to serve as City Attorney for the City of Milpitas.

Background:

On June 22, 2021, City Council reported out of closed session, its decision to transition to an in-house City Attorney model, and on August 5, 2021 formed a Subcommittee, comprised of Mayor Tran and Vice Mayor Montano to provide further direction on the recruitment process. On September 7, 2021, Council adopted the City Attorney class specification and salary schedule, and consistent with the Subcommittee’s direction, authorized the recommended recruitment process.

As a result of the successful completion of the recruitment process, Michael Mutalipassi has been selected to serve as the City Attorney for Milpitas. An employment agreement has been negotiated between the City Council and Mr. Mutalipassi and is now ready for City Council approval.

Analysis:

The employment agreement between the City and Mr. Mutalipassi provides for the following:

Term: 3 years

Salary: $215,000 annually

Benefits: The agreement provides that Mr. Mutalipassi will receive regular benefits and allowances provided to all other unrepresented executive employees. This includes a City provided cellular phone. In addition, the agreement specifies the City will authorize attendance at, and reimburse Mr. Mutalipassi for his attendance at the League of California Cities Spring Conference and expenses.

Retirement: The agreement provides for Mr. Mutalipassi be enrolled in CalPERS with the City and receive benefits similar to other employees.

Miscellaneous: The agreement provides for an “At-will” employment relationship with Mr. Mutalipassi but also provides for the payment of three months of severance in the event the City terminates Mr. Mutalipassi’s employment without cause.

Policy Alternative:

Alternative: Do not approve the employment agreement or seek modifications to the agreement.

Pros: None, as City Council has directed the preparation of this agreement and it represents the good faith negotiations between the City Council and Mr. Mutalipassi. If further modifications are desired, the City Council can discuss and provide that direction in closed session.

537
Item # 21.

Cons: Not moving forward with the recommended actions will result in not being able to hire the City Attorney and will be counter to prior direction given by the Council.

Reason for not Recommending: If the City Council does not approve the employment agreement, then the City Council will need to provide additional direction to staff. This is not recommended is because Council has directed the contract preparation and negotiation and it represents the completion of the negotiations.

Fiscal Impact:

The annual salary compensation is currently budgeted in fiscal year 2022-23. The compensation that will be paid in fiscal year 2021-22 will be absorbed from vacancy savings.

California Environmental Quality Act:

Approval of the recommendation is not a project under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15061(b)(3) (Common Sense Exemption) as it can be seen with certainty that a discussion about establishing a salary range will not have a significant effect on the environment. Further, the item is not a project pursuant to CEQA Guidelines Section 15378(b)(5) as it involves organizational or administrative activities of a local government entity that will not result in direct or indirect physical changes in the environment.

Recommendation:

Approve Employment Agreement with Michael Mutalipassi and appoint him to serve as City Attorney for the City of Milpitas.

Attachments:

1. Employment Agreement

2. Exhibits to Employment Agreement
538
Item # 21.

EMPLOYMENT AGREEMENT

THIS AGREEMENT is between the City of Milpitas, a municipal corporation (the “City” or “Employer”) and City Attorney (“Employee”). It is effective on the latest date next to the signatures on the last page (“the Effective Date”).

This agreement is entered into on the basis of the following facts, among others:

A. The City desires to employ the qualified professional services of Employee as City Attorney of the City, as provided by the Milpitas Municipal Code.

B. The City Council and Empl oyee desire to establish a reasonable, professional and trustworthy employment relationship, subject to the terms and conditions set forth in this Agreement pertaining to compensation and benefits, performance evaluations, and related matters.

BASED UPON THE FOREGOING, THE CITY AND EMPLOYEE AGREE AS FOLLOWS:

1. Employee Appointed. The City appoints Employee as City Attorney, and Employee continues to accept the appointment and employment as of Effective Date.

2. Duties of Employee. Employee shall perform the duties established for the City Attorney by State law, the Milpitas Municipal Code, the City Attorney job description, the directions of the City Council, or as otherwise provided by law, ordinance, or regulation. The provisions of the Municipal Code pertai ning to the City Attorney and City Attorney job description, as may be amended from time to time, are attached hereto as Exhibit A and are hereby made a part of this Agreement.
(a) Full Energy and Skill. Employee shall faithfully, diligently, and to the best o f Employee’s abilities, perform all duties that may be required under this Agreement. Employee agrees that Employee has a duty of loyalty and a general fiduciary duty to the City. Employee shall devote the whole of Employee’s working time, skill, experience, knowledge, ability, labor, energy, attention, and best effort exclusively to the City’s business and affairs.

Prior to undertaking any secondary activities for which Employee receives compensation, Employee shall disclose those activities to the Council. (b) No Conflict. Employee shall not engage in any employment, activity, consulting service, or other enterprise, for compensation or otherwise, which is actually or potentially in conflict with, inimical to, or which interferes with the performance of Employee’s duties.

Further, Employee shall not, during the term of this Agreement, individually, as a partner, joint venture, officer , or shareholder, invest or participate in any business venture conducting business in the corporate limits of the City of Milpitas. 539
Item # 21.
(c) Outside Activities . Consistent with subdivision 2(a) above, the Employee’s primary employment is with the City. Any outside activities for which the Employee receives compensation from a third party shall be disclosed, in advance, to the City Council.

Employee is expected to take personal leave (i.e., vacation time) for any outside activities of this nature.

3. Hours of Work . The City Attorney is an exem pt employee but is expected to engage in those hours of work that are necessary to fulfill the obligations of the City Attorney’s position. The City Attorney does not have set hours of work. The City Attorney is expected to be reasonably available to the City Council at all times. It is recognized that the City Attorney must devote a great deal of time to the business of the City outside the City’s customary office hours, and to that end, the City Attorney’s schedule of work each day and week shall vary in acc ordance with the work required to be performed and in accordance with any specific direction provided by the City Council.

4. Term. The term of this Agreement shall be from the Effective date through April 25, 2025, unless terminated earlier by either party in accordance with the provisions set forth in Section 12, or unless extended as authorized by this Section. The City Council shall meet annually on or around each anniversary of the Effective Date to consider an annual extension to the Agreement.

5. City Council Commitments. The City Council shall abide by all provisions of the City Municipal Code regarding the administration of personnel issues, with a copy of the relevant provisions of the City’s Municipal Code, as may be amended from time to time, attached hereto as Exhibit A.

6. Annual Evaluation. In the first year of the term of this Agreement, the City Council shall conduct an evaluation of Employee’s performance within 60 days to establish working relationships, norms, opportunities to be successful, and g oals for the coming year, then followed on a six - month basis for the first year of agreement. The second six-month evaluation shall be conducted within 60 days of the Employee’s anniversary date as the City Attorney . The City Council shall conduct an eval uation of Employee’s performance and provide guidance and direction in accordance with specific criteria developed by the City Council. At the time of Employee’s annual performance evaluation, Employee may be eligible to receive an increase in Base Salary , as determined by the City Council in its sole discretion. Employee may be eligible for the first increase on Employee’s first anniversary date, and then annually dependent on a performance evaluation to precede any consideration of a salary adjustment. E mployee is not automatically entitled to any increase, which is subject to the sole discretion of the Council. In addition to an established evaluation, the Council has the discretion to provide Employee with an evaluation of performance at other times chosen by the Council.
540
Item # 21.

7. Compensation.
(a) Base Salary . Employee shall receive the annual Base Salary of Two-Hundred Fifteen Dollars ($215,000), payable on a pro -rata basis in the same m anner as all full -time City employees, and subject to all applicable payroll taxes and withholdings. (b) COLA Adjustments/Compaction . Whenever a cost of living adjustment or other non - merit based salary increase is provided to other miscellaneous unrepresented executive staff, the City Council shall consider whether it is reasonable and appropriate to grant the highest cost of living increase received by any miscellaneous unrepresented employee groups to the Employee’s Base Salary to avoid compaction and maint ain a buffer of 10% minimum between the Employee’s Base Salary and the next highest salary for miscellaneous unrepresented executive staff in the City Attorney’s Office. No salary adjustment is guaranteed but is subject to the discretion of the City Council. (c) Reduction in Salary or Benefits . If the City reduces the Employee’s Base Salary, or any benefit described in Sections 8 to 11 of this Agreement, in a percentage that is greater than the average reduction of all miscellaneous unrepresented executive st aff, such action shall constitute a termination of this Agreement without Cause under Section 12 of this Agreement.

8. Regular Benefits and Allowances . Employer agrees to provide and pay the City allowance for vision, dental , and comprehensive medical health insurance for Employee and his/her dependents, if any, equal to that which is provided to all other full -time miscellaneous unrepresented executive staff of Employer. The City contribution toward health insurance shall be equal to that which is provided to all other miscellaneous un represented executive staff of Employer as specified in the applicable Unrepresented Employee Benefit Handbook (“Benefit Handbook”), dated July 1, 2019, or any amendment thereto or replacement thereof. Similarly, Employee shall r eceive short-term and long-term disability insurance coverage while this Agreement is in force, subject to any contributions required of unrepresented miscellaneous unrepresented executive staff.

9. Additional Deferred Compensation . As part of Employee’s ann ual base compensation, City agrees to provide a Section 457 deferred compensation program which will be administered by Mission Square Retirement (formerly the International City Management Association – Retirement Corporation (ICMA -RC)), and to pay into s uch program for Employee’s benefit monthly, an amount equal to that for miscellaneous unrepresented staff commencing with the Effective Date of this Agreement

10. Retirement Benefits.
541
Item # 21.
(a) Employer agrees to enroll Employee into the California Public Employees Reti rement System (“CalPERS”) consistent with other City employees.

11. Additional Benefits and Allowances . In addition to the benefits already specified in this Agreement, Employee shall receive the same benefits afforded to miscellaneous unrepresented executive staff, including and not limited to:
(a) Vacation; Sick Leave
(i) Vacation. Employee shall accrue and be eligible to use vacation days in accordance with the City’s established vacation policy. (ii) Sick Leave. Employee shall be entitled to use and accrue sick leave in accordance with established City policy.
(b) Automobile. Employee shall receive a monthly vehicle allowance of five hundred fifty dollars ($550.00) per month, for automobile trips which shall be equal to that which is provided to all other miscellaneous unre presented executive staff of Employer as specified in the applicable Unrepresented Employee Benefit Handbook (“Benefit Handbook”). Dated July 1, 2019, or any amendment thereto or replacement thereof. (c) Cellular Phone. Employee shall receive a City cell phone for use City work purposes. (d) Professional Development. Employer expects the Employee to continue to develop the professional technical and leadership skills and knowledge necessary to serve as City Attorney. To that end, Employee is expected to continue membership with the California State Bar Association . Employee is expected to attend state or regular conferences, trainings, and other educational opportunities to continue to hone the skills consistent with the City Attorney job description and to maintain licensure as an attorney for the State of California. The City will allow Employee reasonable time away to participate in these professional development opportunities and Employer shall pay for these training opportunities subject to City Council’s budg et approval and in accordance with established City policies.

1. City agrees to reimburse employee for registration costs for League of California Cities Spring Conference in Carlsbad, held May 4 -6, 2022 and for reasonable travel and per diem expenses in accordance with City policies.

12. Termination of Employment.
(a) No property Interest/Cause Defined. Employee understands and agrees that Employee has no constitutionally-protected property or other interest in Employee’s employment as City Attorney. Employee understands and agrees that Employee works at the will and pleasure of the City Council and that Employee may be terminated, or asked to resign, at 542
Item # 21.
any time, with or without Cause, by a majority vote of its members. Notice of termination shall be provided to the City Attorney in writing. As used in this Agreement, Cause shall only mean any of the following:
(i) Conviction of, or plea of guilty or nolo contender to, any crime or offense (other than minor traffic violations or similar offenses) which is likely to have a material adverse impact on the City or on the Employee’s reputation; (ii) Proven failure of the Empl oyee to observe or perform any of his duties and obligations, if that failure continues for a period of thirty (30) business days from the date of his receipt of notice from the City Council specifying the acts or omissions deemed to amount to that failure;
(iii) Conviction of any crime involving an “abuse of office or position,” as that term is defined in Government Code Section 53243.4;
(iv) Repeated failure to carry out a directive or directives of the City Council made by the City Council as a body at a Brown Act compliant meeting; and (v) Any grossly negligent action or inaction by Employee that mat erially and adversely: (a) impedes or disrupts the operations of City or its organizational units; (b) is detrimental to employees or public safety , or (c) violates the Cit y’s properly-established rules or procedures.
(b) Termination Immediately Before or Following City Council Election. No action by the City Council to terminate Employee, other than for Cause, will be made within ninety (90) days before a City Council election or within six (6) months immediately following a City Council election. Nothing in this subsection alters the “at will” status of Employee’s employment with the City.
(c) Notice Required of Employee. Employee may voluntarily terminate employment at any time by giving not less than sixty (60) days’ notice.
(d) Severance Pay . If Employee is asked to resign or is terminated without Cause, then Employee shall be eligible to receive a cash payment equivalent to the sum of Employee’s then-current monthly salary multiplied by three (3) and the cash value, as determined by the City, of Employee’s monthly non -salary COBRA-eligible benefits multiplied by three (3). Any severance and benefits paid shall be subject to state law requirements codified by Government Code Sectio n 53260. This cash payment will be made on a pro -rated, monthly basis over the number of months involved, subject to termination of the severance requirement set forth below. Employee shall also be paid for any accrued, but unused, vacation. In the event o f termination or resignation from employment or the 543
Item # 21.
non-renewal of this Agreement, sick leave upon termination shall be treated in accordance with the Benefit Handbook. Eligibility for such severance payment is expressly conditioned upon Employee’s execution of (i) a waiver and release of any and all of Employee’s claims against City, and (ii) a covenant not to sue. All normal payroll taxes and withholdings as required by law shall be made with respect to any amounts paid under this section. Employee expressly agrees to provide notice to the City within two (2) business days of accepting employment elsewhere, and the City’s obligation to pay any severance benefit to Employee shall terminate upon Employee’s acceptance of such alternative employment.
(e) Ineligibility for Severance under Certain Conditions. If the termination of Employee is for Cause (as defined above) or if Employee voluntarily resigns, Employee is not eligible for and will not receive any severance. If Employee is terminated without Cause, then Section 7(d) above shall control
(f) Communications Upon Termination . In the event that Employer terminates the Employee for any reason or no reason, the Employer and Employee agree to undertake reasonable efforts to issue a joint press release or statement, the content of which is mutually agreeable to the Employer and Employee. The joint press release or statement shall not contain any text or information that is reasonably considered to be disparaging to either party. For purposes of this subdivision only, “party” includes City Council members in the office at the time of termination and miscellaneous unrepresented executive employees. If the parties are able to agree on a joint statement, either party member verbally repeat the substance of the joint press release or statement in response to any inquiry.

13. Statutory Requirements . This agreement shall be deemed to incorporate by reference the provisions of Sections 53243 et seq. of the Government Code, as it may be amended or renumbered.

14. Payment of Expenses of Employment . The City shall pay the following usual and customary employment expenses.
(a) The cost of any fidelity or other bonds required by law for the City Attorney. (b) Subject to Section 12 of this Agreement, the cost to defend and inde mnify Employee as required by the California Government Claims Act (Government Code §810 et seq.) or otherwise. City will determine, in its sole discretion, whether to compromise and set tle any such claims or suit again Employee and the amount of any settlement or judgment rendered thereon.
544
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(c) Subject to budget approval, the cost of attending conferences or other events (i.e. out- of-town meetings, professional memberships , and seminars, etc .) necessary for the proper discharge of Employee’s duties. The City will not reimburse Employee of any expenses related to membership in service clubs, and will not encourage or require service club membership.

15. Miscellaneous.
(a) Notices. Notices given under this Agreement shall be in writing and shall be:
(i) Served personally; or
(ii) Sent by facsimile (provided a hard copy is mailed within one (1) business day); or (iii) Delivered by first-class United States mail, certified, with postage prepaid and a return receipt requested; or
(iv) Sent by Federal Express, or some equivalent private overnight delivery service.

Notices shall be deemed received at the earlier of actual receipt or three (3) days following deposit in the United States mail, postage prepaid. Notices shall be d irected to the addresses shown below, provided that a party may change such party’s address for notice by giving written notice to the other party in accordance with this subsection.

CITY:

City of Milpitas
Attn: Mayor
455 E. Calaveras Blvd.

Milpitas, CA 95035
Employee:

Michael Mutalipassi
Attn: City Attorney
455 E. Calaveras Blvd.

Milpitas, CA 95035

(b) Compliance with Government Code §§53243, 53243.1, & 53243.2 . If Employee is convicted of a crime involving an abuse of the Employee’s office or position, all of the following shall apply:
(i) If Employee is provided with administrative leave pay pending an investigation, Employee shall be required to fully reimburse the City for such amounts paid; 545
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(ii) If the City pays for the criminal legal defense of Employee (which would be in its sole discretion, as it is not generally required to pay for criminal defense) , Employee shall be required to fully reimburse City such amounts paid; and (iii) If this Agreement is terminated, any cash settlement related to the termination that Employee may receive from the City shall be fully reimbursed to the City or void if not yet paid to Employee.
(iv) For this subsection, “abuse of office or position” means either (1) an abuse of public authority, including waste, fraud, and violations of the law under color of authority, or (2) a crime against public justice, including but not limited to a crime described in Title 7 (commencing with Section 92) or Part 1 of the Penal Code. (c) Entire Agreement/Amendment . This Agreement constitutes the entire unde rstanding and agreement between the parties as to those matters contained in it and supersedes any and all prior or contemporaneous agreements, representations, and understandings of the parties. This Agreement may be amended at any time by mutual agreement of the parties and attached hereto.
(d) Attorney’s Fees. If any legal action or proceeding is brought to enforce or interpret this Agreement, the prevailing party shall be entitled to recover his or its attorney’s fees and costs. Nothing in this subsection s hall be read to prevent the parties from agreeing to some alternative method of dispute resolution.
(e) Severability. In the event any portion of this Agreement is declared void, such be severed from this Agreement and the remaining provisions shall remain in effect unless the result of that severability would be to substantially alter this Agreement or the obligations of the parties, in which case this Agreement shall be immediately terminated. (f) Waiver. Any failure of a party to insist upon strict compliance with any term, undertaking, or condition of this Agreement shall not be deemed to be a waiver of such term, undertaking, or condition. To be effective, a waiver must be in writing, signed, and dated by the parties.
(g) Representation by Counsel. The parties acknowledge and agree that they were, or had the opportunity to be, represented individually by legal counsel with respect to the matters that are the subject of this Agreement and that they are fully advised with respect to their respective rights and obligations resulting from signing this Agreement. (h) Governing Law and Venue . This Agreement shall be governed by and con strued in accordance with the laws of the State of California. Employee and City agree that the venue for any dispute shall be in Santa Clara County, California. 546
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(i) Section Headings . The headings on each of the sections and subsections of this Agreement are f or the convenience of the parties only and do not limit or expand the contents of any such section or subsection.
(j) No Assignment. Employee may not assign this Agreement in whole or in part.

_____________________________________________ ________________________________ City of Milpitas / Mayor Dated

_____________________________________________ ________________________________ Employee / City Attorney Dated

547
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Title VI - PERSONNEL
Chapters:

VI-1 City Manager 419
VI-3 Departments, Assignments and Appointments 423
VI-10 Public Safety Dispatcher Training and Selection 424.1 VI-101 Personnel System 425
VI-102 Provisions for Reducing City Work Force 430
Chapter 1 - CITY MANAGER
Sections:

Section 1 - Establishment
The office of City Manager and the City Manager form of government is hereby established in the City of Milpitas pursuant to the provisions of Section 34851a et seq., of the Government Code of the State of California.
(Ord. 63 (part), 8/20/57)
Section 2 - Duties and Responsibilities
VI-1-2.01 - Manager Responsible to the Council
The City Manager shall be the chief executive officer of the City Council of the City of Milpitas and shall act as the agent for and on behalf of the Council in the discharge of its administrative functions. He shall be responsible to the City Council for the administration of all affairs of the City except as otherwise provided herein.
(Ord. 63 (part), 8/20/57)
548
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VI-1-2.02 - Manager Shall Attend All City Council Meetings and Make Reports The City Manager shall attend all regular and special meetings of the City Council. He shall report to the Council as requested by the City Council and as he deems necessary. He shall keep the Council advised of the financial condition and future needs of the city and shall make such recommendations as he may deem desirable.
(Ord. 63 (part), 8/20/57)
VI-1-2.03 - Appointment and Removal of Employees by Manager The City Manager shall be the "appointing officer" of the City, and shall have the power to appoint and dismiss all subordinate appointive officers and employees, subject to the provisions of the City's Municipal Code. Provided, however, that the provisions of this Section shall not apply to the City Attorney. (Ord. 52.5 (part), 11/18/97: Ord. 63 (part), 8/20/57)
VI-1-2.04 - Council Dealing with Administrative Sta through City Manager Except for purposes of inquiry, the City Council and its members shall deal with the administrative staff solely through the City Manager.
(Ord. 63 (part), 8/20/57)
VI-1-2.05 - Preparation and Administration of the Budget The City Manager shall prepare the budget annually and submit it to the City Council, and he shall be responsible for its administration after adoption. He shall supervise the expenditures of and act as the purchasing agent for all the departments, divisions and services of the city government. The City Manager shall prepare and submit to the City Council a complete report as of the end of each fiscal year on the finances and administrative activities of the City during the preceding year. (Ord. 63 (part), 8/20/57)
VI-1-2.06 - Performance of Other Duties
The City Manager shall perform such other duties as are consistent with this chapter and as may be prescribed by ordinance, resolution, or order of the City Council. (Ord. 63 (part), 8/20/57)
VI-1-2.07 - Designation of Administrative Ocer when Manager is Absent or Disabled 549
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The City Manager may designate in writing a qualified administrative officer of the City to perform his duties during his temporary absence or disability. In the event of the failure of the City Manager to make such designation, the Council may by resolution appoint an officer of the City to perform the duties of the City Manager until he shall return or his disability shall cease. (Ord. 63 (part), 8/20/57)
VI-1-2.08 - Creation of Departments and Subdivisions
The work of the city government may be distributed among such departments, divisions, and services thereof as may be established by ordinance of the City Council upon recommendation of the City Manager.

Pending the passage of an ordinance distributing such work, the Manager may establish temporary departments, divisions, and services.
(Ord. 63 (part), 8/20/57)
VI-1-2.09 - Furnishing Bond
The City Manager shall furnish a bond to the City of Milpitas conditioned upon the faithful performance of his duties in a penal sum and with such corporate surety as the Council may require. The premium for said bond shall be paid by the City of Milpitas.
(Ord. 63 (part), 8/20/57)
VI-1-2.10 - Appointment and Removal
The City Manager shall be appointed by a majority of the City Council and shall serve until he or she is removed by a majority of the members or until his or her resignation. (Ord. 52.4, 2/2/93; Ord. 63 (part), 8/20/57)
VI-1-2.11 - Notice of Resignation
The City Manager may resign from his position upon at least thirty (30) days' notice in writing to the City Council.
(Ord. 63 (part), 8/20/57)
VI-1-2.12 - Compensation
The compensation, annual leave, sick leave and other recompense of the City Manager and perquisites of his office shall be as determined by order or resolution of the City Council. 550
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(a)
(b)
(c)
(Ord. 63 (part), 8/20/57)
VI-1-2.13 - Assigning Additional Duties
Wherever any order, resolution or ordinance of the City Council of the City of Milpitas has heretofore or hereafter assigned any power or duty or granted any right or privilege to the City Administrator of the City of Milpitas, the City Manager of the City of Milpitas shall be empowered and shall be assigned said power or duty and shall be granted said right or privilege.
(Ord. 63 (part), 8/20/57)
VI-1-2.14 - Signatures.

The City Manager and his or her designee, upon approval of the City Council, shall have the authority to sign and execute the following instruments:

All warrants drawn on the City Treasury.

All written contracts and conveyances made or entered into by the City.

All instruments requiring the City seal.
(Ord. 63.2, 6/15/99)
Section 3 - Transfer of Duties to City Manager
VI-1-3.01 - City Clerk
Pursuant to the provisions of Section 34004 of the Government Code of the State of California, the City Council of the City of Milpitas does hereby transfer from the City Clerk of the City of Milpitas to the City Manager of the City of Milpitas, any duty imposed upon said Clerk by any law of the State of California or any rule or regulation adopted under the authority of any such law except as hereinafter provided, and any duty imposed upon the City Clerk by any ordinance or resolution of the City of Milpitas, or any rule or regulation adopted under the authority of any ordinance or resolution of the City of Milpitas except as hereinafter provided:
(Ord. 52.2, 1/16/63)

3.01-1 Exception: The City Clerk may sign and execute any evidence of indebtedness, bond, indenture, or document specified by law or contract to be signed or executed by the City Clerk in connection with the issuance, sale or redemption of bonds, and evidences of indebtedness, and the qualification for or acceptance of grants, the proceedings for the authorization or incurring of which have been conducted by, or pursuant to the authority of the City Council. 551
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(Ord. 52.2, 1/16/63)

3.01-2 Exception: The City Clerk shall have concurrent authority (with the City Manager) to administer oaths or affirmations and take and certify affidavits and depositions pertaining to city affairs and business pursuant to the authority granted by 40814 of the Government Code of the State of California. (Ord. 52.2, 1/16/63)
VI-1-3.02 - Treasurer
Pursuant to the provisions of 34004 of the Government Code of the State of California, the City Council of the City of Milpitas does hereby transfer from the City Treasurer of the City of Milpitas to the City Manager of the City of Milpitas, any duty imposed upon said Treasurer by any law of the State of California or any rule or regulation adopted under the authority of any such law except as hereinafter provided, and any duty imposed upon the City Treasurer by any ordinance or resolution of the City of Milpitas, or any rule or regulation adopted under the authority of any ordinance or resolution of the City of Milpitas except as hereinafter provided:
(Ord. 52.2, 1/16/63)

3.02-1 Exception: The City Treasurer may continue to sign voucher checks of the City of Milpitas to the extent granted by resolution of the City Council enacted under authority of 37203 of the Government Code.

3.02-2 Exception: The City Treasurer may sign and execute any evidence of indebtedness, bond, indenture, or document specified by law or contract to be signed or executed by the City Treasurer in connection with the issuance, sale or redemption of bonds, and evidences of indebtedness, and the qualification for or acceptance of grants, the proceedings for the authorization or incurring of which have been conducted by, or pursuant to the authority of, the City Council. (Ord. 52.2, 1/16/63)
VI-1-3.03 - Performance of Duties Transferred
It shall be the duty of the City Manager to perform such duties as have been transferred to him, pursuant to the provisions of this section.
(Ord. 52.2, 1/16/63)
VI-1-3.04 - City Manager Empowered to Appoint Clerk and Treasurer Pursuant to the provisions of Section 36510 of the Government Code of the State of California, the City Manager of the City of Milpitas is hereby empowered to appoint the City Clerk and the City Treasurer. 552
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A.

B.

C.

D.

E.

F.

G.

H.

I.
(Ord. 52.3, 9/18/73)
Section 4 - Employment Contracts
VI-1-4.00
Nothing herein contained shall be construed to prevent the City Council from entering into a written contract of employment with the City Manager. Said contract may, in addition to such other provisions as shall not be in conflict with the provisions of this Chapter, provide for severance pay to the City Manager in the event his employment is terminated by City. No contract of employment, however, shall exceed a term of four years. No contract of employment shall contain any provision inconsistent with the provisions of this Chapter.
(Ord. 63.1, 9/5/78)
VI-1-4.01 - Declaratory of Existing Law
The Council finds and determines that the provisions of this Section VI-1-4.00 are declaratory of existing law and do not constitute a change in said law.
(Ord. 63.1, 9/5/78)
Chapter 3 - DEPARTMENTS, ASSIGNMENTS AND APPOINTMENTS
VI-3-1.00 - Establishment of Departments of City
Pursuant to the provision of Section VI-1-2.08 of the Milpitas Municipal Code, the work of the City government shall be distributed among the following departments of the City:

City Manager;
City Attorney;
Finance;
Human Resources;
Information Technology;
Planning;
Public Works;
Engineering;
Police; 553
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J.

K.

L.

1. 2.

Fire;
Building Safety and Housing; and
Recreation and Community Services.
(Ord. No. 301 , § 19, 8/20/19; Ord. No. 197.14, § 1, 6/6/17; Ord. No. 197.13, § 2, 6/2/15; Ord. No. 197.12, § 2, 6/5/12; Ord. No. 197.11, § 2, 6-16-09; Ord. 197.10 (1), 6/19/07: Ord. 197.9, 6/6/06: Ord. 197.7, 7/3/01: Ord. 197.6, 9/5/95: Ord. 197.5, 3/21/95: Ord. 197.4, 5/4/94: Ord. 197.3 (A), 8/5/86: Ord. 197.2, 3/16/79; Ord. 197.1 (part), 9/5/78)
VI-3-2.00 - Divisions and Distribution of Work
Subject to other provisions of law, the work of the City government shall be assigned to such departments and such divisions within such departments as the City Manager shall establish and determine.
(Ord. 197.1 (part), 9/5/78)
VI-3-3.00 - Appointment and Removal of Department Heads The City Manager shall appoint, and at his or her pleasure may dismiss, all City Department Heads. The City Manager's power to appoint and dismiss as described in this Ordinance may not be amended or limited, except as expressly imposed by formal action of the City Council. (Ord. 52.5 (part), 11/18/97: Ord. 197.1 (part), 9/5/78) VI-3-4.00 - Severance Payments for Specied "At-Will" Positions Application. The ordinance codified in this Section shall permit the payment of severance to City employees serving in any of the following positions on an "at-will" (i.e., exempt) basis:

Department Heads; Chief Building Official; and City Engineer (hereafter "qualifying positions").

Severance Schedule. In exchange for a general release in a form subject to approval by the City Attorney, the City Manager may grant severance pay pursuant to this Section on the following schedule. Severance pay shall be based on an employee's base salary at the time of separation and is subject to all applicable withholding as determined by the City or appropriate taxing authorities:

For employees with up to one year of City service in a qualifying position: Four weeks' salary.

For employees with greater than one year, but no more than five years, of City service in a qualifying position: Four weeks' salary, plus two weeks' salary for each additional year of City service in a qualifying position (maximum twelve weeks' salary). 554
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3. (a)
(b)
(c)
(d)
For employees with greater than five years of City service in a qualifying position: Twelve weeks' salary, plus one week's salary for each additional year of City service in a qualifying position not to exceed a total of four additional weeks' salary.

Criteria and Administration.

The maximum amount of severance payable under this Section sixteen weeks' salary. The minimum City service required in a qualifying position in order to receive this amount is nine years.

A year of City service means at least 2080 hours during a twelve-month period in a paid status.

Severance payments under this Section shall not be paid until after the City Attorney approves the release and after any statutory waiting periods have expired (e.g., the seven-day waiting period under the ADEA).

Severance payments may be made under this Section only after an employee is dismissed without cause or is laid off. Employees who voluntarily resign, retire, or who are dismissed "for cause" are ineligible for severance payments made under this section. Dismissal "for cause" includes any dismissal made for reasons of fraud, dishonesty, insubordination, theft, misappropriation or misuse of City property, excessive absenteeism, actions prohibited by the City's anti-discrimination policies, or conduct that would constitute a crime. The City Manager shall have the discretion to determine whether dismissals are "for cause" under this section.
(Ord. 197.8, 6/4/02)
Chapter 10 - PUBLIC SAFETY DISPATCHER TRAINING AND SELECTION Sections:

VI-10-1.00 - Purpose
The City of Milpitas declares that it desires to qualify to receive aid from the State of California under the provisions of Section 13522, Chapter 1, of Title 4, Part 4, of the California Penal Code. (Ord. 235 (part), 4/3/90)
VI-10-2.00 - State Standards
Pursuant to Section 13510(c), Chapter 1, the City of Milpitas will adhere to standards for recruitment and training established by the California Commission on Peace Officer Standards and Training (POST). 555
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(Ord. 235 (part), 4/3/90)
VI-10-3.00 - Adherence to Standards
Pursuant to section 13512, Chapter 1, the Commission and its representatives may make such inquiries as deemed appropriate by the Commission to ascertain that the City of Milpitas public safety dispatcher personnel adhere to standards for selection and training established by the Commission on Peace Officer Standards and Training.
(Ord. 235 (part), 4/3/90)
Chapter 101 - PERSONNEL SYSTEM
Sections:
[Section 1. - Adoption of Personnel System]
VI-101-1.00 - Adoption of Personnel System
In order to establish an equitable and uniform procedure for dealing with personnel matters; to attract to municipal service the best and most competent persons available; to assure that appointments and promotions of employees will be based on merit and fitness as determined by competitive test; and to provide a reasonable degree of security for qualified employees, the following personnel system is hereby adopted.
(Ord. 111.8 (C)(part), 4/17/90; Ord. 111 (part), 8/6/63) [Section 2. - Personnel Ocer]
VI-101-2.00 - Personnel Ocer
VI-101-2.01 - Duties and Responsibilities
The City Manager shall be ex-officio personnel officer. The City Manager may delegate any of the powers and duties as personnel officer under this Chapter to any other officer or employee of the City or may recommend that such powers and duties be performed under contract as provided in Section VI-101-15 of this Chapter. The Personnel Officer shall:
556
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2.01-1 Administer all the provisions of this Chapter and of the personnel rules not specifically reserved to the Council.

2.01-2 Prepare and recommend to the Council revisions and amendments to the personnel rules. The City Attorney shall approve the legality of such revisions and amendments prior to their submission to the Council.

2.01-3 Prepare a position classification plan, including class specifications, and revisions of the plan.

The plan, and any revisions thereof, shall become effective upon approval by the Council.

2.01-4 Prepare a plan of compensation, and revisions thereof, covering all classifications in the competitive service. The plan, and any revisions thereof, shall become effective upon approval by the Council.
(Ord. 111.8 (C)(part), (D), 4/17/90: Ord. 111 (part), 8/6/63) [Section 3. - Competitive Service]
VI-101-3.00 - Competitive Service
The provisions of this Chapter shall apply to all offices, positions, and employments in the service of the City, except the following "exempt" positions.
(Ord. 111.8 (C)(part), 4/17/90; Ord. 111 (part), 8/6/63) VI-101-3.01 - Positions Exempt from Competitive Service

3.01-1 All elected officials.

3.01-2 Members of appointive boards, commissions and committees.

3.01-3 Persons engaged under contract to supply expert, professional or technical services for a definite period of time.

3.01-4 Volunteer personnel, such as volunteer firemen, who receive no regular compensation from the City.

3.01-5 The City Attorney, the City Clerk, and City Treasurer.

3.01-6 The City Manager and Assistant City Manager.

3.01-7 Department Heads, Directors, Division Heads and other employees with significant responsibility for formulating and administering City policies and programs. (Ord. 111.8 (C)(part), (E), 4/17/90: Ord 111.2, 6/22/70; Ord. 111 (part), 8/6/63) 557
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[Section 4. - Adoption of Rules]
VI-101-4.00 - Adoption of Rules
Personnel rules, prepared by the City Manager subject to this Chapter and to revision by the Council, shall be adopted, and may be amended from time to time, by resolution of the Council. The rules shall establish specific procedures and regulations governing the following phases of the personnel system:
(Ord. 111.8 (C)(part), 4/17/90; Ord. 111 (part), 8/6/63) VI-101-4.01 - Coverage of Such Rules

4.01-1 Preparation, installation, revision, and maintenance of a position classification plan covering all positions in the competitive service, including employment standards and qualifications for each class.

4.01-2 Preparation, revision, and administration of a plan of compensation directly correlated with the position classification plan, providing a rate or range of pay for each class.

4.01-3 Public announcement of all tests and the acceptance of applications for employment.

4.01-4 Preparation and conduct of tests and the establishment and use of resulting employment lists containing names of persons eligible for appointment.

4.01-5 Certification and appointment of persons for employment lists, and the making of temporary and emergency appointments.

4.01-6 Transfer, promotion, demotion, and reinstatement of employees in the competitive service.

4.01-7 Separation of employees from the City service through lay-off, suspension, and dismissal.

4.01-8 Standardization of hours of work, attendance and leave regulations, working conditions and the development of employee morale, welfare, and training.

4.01-9 Suitable provision for orderly and equitable presentations to the City Manager and to the City Council by employees relating to general conditions of employment.

4.01-10 Content, maintenance, and use of personnel records and forms.

4.01-11 Not codified.

4.01-12 Any other procedures and regulations necessary to carry out the provisions of this Chapter. (Ord. 111.8 (C)(part), 4/17/90; Ord. 111 (part), 8/6/63) [Section 5. - Appointments] 558
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VI-101-5.00 - Appointments
VI-101-5.01 - Competitive
Examinations
Appointments to vacant positions in the competitive service shall be made in accordance with the personnel rules. Appointments and promotions shall be based on merit and fitness to be ascertained so far as practicable by competitive examinations. Examinations shall not be required for the reinstatement of employees to the same or comparable class, for which they are qualified and from which they were separated as a result of resignation in good standing or reduction in force.

Provided however, the City Council shall be entitled to establish preference in the competitive examination procedure for veterans of the United States armed forces as defined by and under rules and regulations adopted by the City Council by resolution.
(Ord. 111.8 (C)(part), 4/17/90; Ord. 111.7, 2/18/86; Ord. 111 (part), 8/6/63) VI-101-5.02 - Power to Make Appointments
Appointments shall be made by the City Council, City Manager, Department Heads, Personnel Officer or the officer in whom the power to make appointments is vested by law. (Ord. 111.8 (C)(part), (F), 4/17/90: Ord. 111 (part), 8/6/63) VI-101-5.03 - Temporary appointment
In the absence of appropriate employment lists, a temporary appointment may be made in accordance with the Personnel Rules.
(Ord. 111.8 (C)(part), 4/17/90; Ord. 111 (part), 8/6/63) VI-101-5.04 - Emergency appointments
Emergency appointments shall be made in accordance with state law and the personnel rules. (Ord. 111.8 (C)(part), 4/17/90; Ord. 111 (part), 8/6/63) Section 6 - Probationary Period
All regular appointments, including promotional appointments, shall be for a probationary period of not less than six months.
559
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(Ord. 111.8 (C)(part), 4/17/90; Ord. 111 (part), 8/6/63) Section 7 - Status of Present Employees
VI-101-7.01 - Exemption From Qualifying
Any person holding a position included in the competitive service who, on the effective date of this Chapter, shall have served continuously in such position for a period equal to the probationary period prescribed in the rules for his class, shall assume regular status in the competitive service in the position held on such effective date without qualifying test, and shall thereafter be subject in all respects to the provisions of this Chapter and the personnel rules.
(Ord. 111.8 (C)(part), 4/17/90; Ord. 111 (part), 8/6/63) VI-101-7.02 - Present Employee in Probationary Period
Any other persons holding positions in the competitive service shall be regarded as probationers who are serving out the balance of their probationary periods as prescribed in the rules before obtaining regular status. The probationary period shall be computed from the date of appointment or employment. (Ord. 111.8 (C)(part), 4/17/90; Ord. 111 (part), 8/6/63) Section 8 - Applicability of Rules to Certain Exempt Positions The provisions of the personnel rules relating to attendance and leaves shall apply to the incumbents of full-time exempt positions.
(Ord. 111.8 (C)(part), 4/17/90; Ord. 111 (part), 8/6/63) Section 9 - Appointments Subject to Ordinance
The City Council, City Manager, and any other officer in whom is vested the power to appoint, make transfers, promotions, demotions, reinstatements, lay-offs, and to suspend or dismiss employees, shall retain such power, subject to the provisions of this chapter and the personnel rules. (Ord. 111.8 (C)(part), 4/17/90; Ord. 111 (part), 8/6/63) Section 10 - Suspension
560
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(a)
(b)
(c)
(a)
(b)
(c)
(d)
(e)
Any person holding a position or employment in the competitive service shall be subject to disciplinary suspension without pay by the appointing power, provided that such suspensions are in accordance with the provisions of this chapter and the personnel rules relating to appeals procedure. (Ord. 111.8 (C)(part), 4/17/90; Ord. 111 (part), 8/6/63) Section 11 - Right of Appeal
Except as otherwise provided in a Memorandum of Understanding approved by the City Council, any employee shall have the right to appeal any disciplinary action, suspension, demotion, reduction or alleged violation of the personnel ordinance or rules. The administration of appeals shall be governed by the personnel rules.
(Ord. 111.8 (C)(part), (G), 4/17/90: Ord. 111.7 (part), 1/6/87: Ord. 111 (part), 8/6/63) Section 12 - Improper Political Activity
Any person holding an office or employment in the competitive service shall not:

Deleted by Ord. 111.3.

During hours of work, or when dressed in the uniform required in any department of the City government or when wearing any City insignia required or permitted in any department of the City government or while identifying himself as an officer or employee of the City of Milpitas, participate in any City, District, County, State, Federal or other political activity or participate in any nomination, campaign or election (except as expressly authorized by the City Manager of City.)
Use his office or employment or title or City uniform or City insignia in connection with any City, District, County, State, Federal or other political activity or in connection with any nomination, campaign or election (except as expressly authorized by the City Manager). (Ord. 111.8 (C)(part), 4/17/90; Ord. 111.3, 6/18/74; Ord. 111.1, 5/28/68; Ord. 111 (part), 8/6/63) Section 13 - Activities Not Aected
This chapter does not prevent any officer or employee from:

Becoming or continuing to be a member of a political club or organization.

Attendance at a political meeting.

Enjoying entire freedom from all interference in casting his vote.

Seeking or accepting election or appointment to public office while on leave of absence.

Seeking signatures to any initiative or referendum petition directly affecting his rates of pay,561 Item # 21.
(f)
(a)
(b)
(c)
(d)
(e)
hours of work, retirement, civil service, or other working conditions provided such activity is not carried on during hours of work.

Distributing badges, pamphlets, dodgers, or handbills or other participation in any campaign in connection with such petition if the activity is not carried on during hours of work, or when he is dressed in the uniform required in any department of the city government.

The violation of any provision of Sections 12 or 13 is ground for discharge of any officer of employee. (Ord. 111.8 (C)(part), 4/17/90; Ord. 111 (part), 8/6/63) Section 14 - Discrimination
All recruitment, hiring, placements, transfers and promotions shall be on the basis of qualifications of the individual for the positions being filled regardless of race, color, religion, ancestry, national origin, age (over forty years), sex, marital status, medical condition (cured or rehabilitated cancer), physical handicap, political affiliation or union activity. All other personnel actions, such as compensation, benefits, layoffs, returns from layoffs, disciplinary actions, training and social and recreational programs shall also be administered regardless of race, color, religion, ancestry, national origin, age (over forty years), sex, marital status, medical condition, physical handicap, political affiliation or union activity. (Ord. 111.8 (C)(part), (H), 4/17/90: Ord. 111 (part), 8/6/63) Section 15 - Right to Contract for Special Service
The City Manager shall consider and make recommendations to the City Council regarding the extent to which the City should contract for the performance of technical services in connection with the establishment or operation of the personnel system. The Council may contract with any qualified person or agency for the performance of all or any of the following responsibilities and duties imposed by this Chapter:

The preparation of personnel rules and subsequent revisions and amendments thereof.

The preparation of a position-classification plan, and subsequent revisions and amendments thereof.

The preparation of a plan of compensation, and subsequent revisions and amendments thereof.

The preparation, conduct and grading of competitive tests.

Special and technical services of advisory or informational character on matters relating to personnel administration.
(Ord. 111.8 (C)(part), 4/17/90; Ord. 111 (part), 8/6/63) 562
Item # 21.

Section 16 - Appropriation of Funds
The Council shall appropriate such funds as are necessary to carry out the provisions of this Chapter. (Ord. 111.8 (C)(part), 4/17/90; Ord. 111 (part), 8/6/63) Section 17 - Penalty Provision
See I-1-4.09-1
(Ord. 111.8 (C)(part), 4/17/90; Ord. 111 (part), 8/6/63) Section 18 - Regulations Regarding Nepotism
VI-101-18.01
As used herein, the term "relative" means the following relationships by blood, marriage or adoption:

Spouse, father, mother, sister, brother, son, daughter, niece, nephew, aunt, uncle, stepfather, stepmother, stepsister, stepbrother, stepson, stepdaughter.
(Ord. 111.8 (C)(part), 4/17/90; Ord. 111 (part), 8/6/63) VI-101-18.02
The provisions of this Section shall not apply to any officer, employee or appointee holding any office, employment or appointment prior to thirty days following the adoption of this Section. (Ord. 111.8 (C)(part), 4/17/90; Ord. 111 (part), 8/6/63) VI-101-18.03
No person shall be disqualified for appointment as an employee of the City or disqualified from assignment or transfer for the sole reason that said person is a relative of another City officer or employee except as follows:
a) No person shall serve in a position where said person is subject to supervision, evaluation, discipline or having his/her compensation determined by a relative. b) No person who is a relative of a department head shall serve in the department of said department head.
c) No person who is a relative of a division head shall serve in the same division as said division head. 563
Item # 21.
(i)
(ii)
d) No relative of the City Manager, Mayor, or of any City Council member shall serve in any city position provided nothing herein contained:
shall be a limitation upon the power of the electorate to elect a Mayor or Council member, notwithstanding the fact that at the time of said election, said Mayor or Council member shall have a relative employed by the City
shall be a limitation upon the power of the Mayor or Council to appoint any Council member or other City officer, notwithstanding the fact that at the time of the appointment, the appointee has a relative employed by the City.
(Ord. 111.8 (C)(part), 4/17/90; Ord. 111.6, 2/18/86; Ord. 111 (part), 8/6/63) Chapter 102 - PROVISIONS FOR REDUCING CITY WORK FORCE
Sections:

Section 1 - Abolition or Reduction of Authorized Positions VI-102-1.00
Whenever in the judgment of the City Council it becomes necessary in the interest of economy or because the necessity for any authorized position in the City service no longer exists, the City Council may eliminate or reduce the number of any or all authorized positions within the City service without the right of appeal of the decision to eliminate or reduce the positions. (Ord. 111.5 (part), 6/20/78)
Section 2 - Demotion Within the Competitive Service Classications Above the Entry Level VI-102-2.00
In reducing the number of personnel within classification(s) the least senior employee(s) within the affected class(es) shall be displaced either through demotion or lay-off. Seniority for the purpose of this section, is defined as the employee's total time served within the specified classification, or higher classification(s) within the job series. In the event two or more employees have served the same amount of time in a classification, seniority shall be determined by their respective position on the employment list for the specified classification. All temporary employees in the affected class or classes shall be laid off prior to the displacement of any probationary or permanent employee. 564
Item # 21.
1)
2)
Any permanent employee who is displaced as provided for in Section 1, may elect to accept a demotion in lieu of lay-off to a lower level related classification, or an unrelated classification previously held on a permanent basis, provided, however, that two conditions are met:
that the employee accepting demotion meets the qualifications for the classification he/she has elected for the demotion OR has previously held the classification; and that the employee accepting demotion must have a length of service either in the higher classification(s), the classification he/she is considering for demotion, or a combination of both which is greater than the least senior employee in the classification to which he/she intends to accept the demotion.
(Ord. 111.5 (part), 6/20/78)
Section 3 - Exempt Employees May Return to the Competitive Service VI-102-3.00
Any exempt employee who was promoted from the Competitive Service may elect a demotion to the Competitive Service in lieu of layoff. Once elected, said employee shall be eligible for demotion to a lower level classification in accordance with the provisions of Section 2. (Ord. 111.8 (I)(part), 4/17/90: Ord. 111.5 (part), 6/20/78) Section 4 - Lay-O
VI-102-4.00
Seniority, for the purpose of this section, shall be defined as the total cumulative time of City service and shall be observed in effecting lay-offs. The order of lay-off shall be in the reverse order of total cumulative time served in permanent positions in the City service upon the effective date of lay-off. Lay-off shall be made within classes of positions, and all temporary employees in the affected class or classes shall be laid off prior to the lay-off of any probationary or permanent employee.

Each employee laid off shall receive a final performance evaluation to be based on job performance since the employee's last performance appraisal. Thereafter, the Department head shall certify as to the affected employee's competency if overall service in the classification has been satisfactory. If not certified as having given satisfactory service, the employee laid off may interpret the action as a discharge and request a hearing as provided by the Personnel Ordinance. An employee who is laid off must be certified as competent, in order to be placed on the re-employment list. 565
Item # 21.
(Ord. 111.5 (part), 6/20/78)
Section 5 - Time Served on Military Leave
VI-102-5.00
For the purpose of determining displacement within classifications in accordance with this Chapter, time served on military leave shall be included as time served within the classification held at the time the military leave was taken, and in accordance with the Military and Veterans Code of the State of California. (Ord. 111.5 (part), 6/20/78)
Section 6 - Notice of Lay-O
VI-102-6.00
Pursuant to Section 1 of this Chapter, the City shall provide employees who may be affected by lay-off, a thirty (30) calendar day written preliminary notice of intent to lay-off. The preliminary notice shall also advise the employee whether, in accordance with this Chapter, they may elect demotion in lieu of lay-off.

Employees who are notified that they may elect demotion in lieu of lay-off, must advise the City Manager's Office within fifteen (15) calendar days, of their decision to exercise the demotion option or forfeit their rights to the demotion in lieu of lay-off. Thereafter, the City shall provide a written confirmed notice of lay- off at least ten (10) working days prior to the effective date of lay-off. Reasonable effort shall be made to ensure notification. The recognized employee group representatives for the affected classes shall be notified concurrently on the preliminary and confirmed lay-off notices. (Ord. 111.5 (part), 6/20/78)
Section 7 - Re-Employment Lists
VI-102-7.00
The names of probationary and permanent employees laid off or demoted in accordance with this Chapter shall be placed on a re-employment list in the reverse order of their displacement, whether it be by lay-off or demotion. The lists shall be prepared by classes which, in the opinion of the City Manager, require basically the same qualifications and duties and responsibilities for those of the class or classes of positions 566
Item # 21.
1)
2)
1)
2)
3)
4)
5)
6)
from which lay-off or demotion occurred. Re-employment lists shall remain in effect for seven years following their promulgation, except that the names of employees who are laid off shall be removed after three years.

Employees who are laid off in accordance with this Chapter are required to keep the City Manager's Office informed of any change of address or telephone number. Employees shall be returned in the reverse order of their displacement.

An employee's name shall be removed from the re-employment list, if:
the individual has been certified for appointment three times and has refused the appointments; and/or
has resigned from City service during the period the list is in effect.

In the event an employee's name is removed from the re-employment list for refusing an appointment three times, he/she may petition the City Manager in writing for reinstatement to the list. If good cause can be demonstrated as to why the individual did not accept any of the appointments, the City Manager may reinstate the individual to the list.
(Ord. 111.5 (part), 6/20/78)
Section 8 - Conditions of Re-Employment
VI-102-8.00
Upon re-employment, any employee who was laid off in accordance with Section 4 of this Chapter shall have his/her status restored and/or modified pursuant to the existing Memorandum of Understanding in effect at the time of lay-off or subsequent Memorandum of Understanding. The intent of this section is to restore at least the following:
the same vacation accrual rate;
his/her sick leave balance in effect at the time of lay-off; his/her seniority (time served in permanent positions within the City service), at the time of lay-off;
if re-employed in the same classification, or substantially the same classification, the employee shall be returned to the same step of the current salary range for that classification;
if re-employed in a lower classification, the employee's salary shall be established as though he/she had been demoted to the position; and
upon re-employment the applicant shall provide a written statement that he/she has not 567
Item # 21.
1)
2)
3)
4)
incurred any disability during the period of lay-off which would prevent the applicant from performing the duties of that position.
(Ord. 111.5 (part), 6/20/78)
Section 9 - Waiver
VI-102-9.00
Unless modified herein, all other existing provisions remain as established. (Ord. 111.5 (part), 6/20/78)
Section 10 - Severability
See I-1-4.12
(Ord. 111.5 (part), 6/20/78)
Section 11 - Criteria for Demotion Within Exempt Classications VI-102-11.00
In reducing the number of exempt personnel, displacement within classification(s) shall be made by the City Manager after reviewing the Department Head's recommendation and may take into consideration the following four factors:
consideration of the seniority of the employee(s) affected; the nature of the services performed by the employee(s) affected or which the employee(s) affected are capable of rendering;
the importance of the service rendered to the City and to the community; and the availability of funds.
(Ord. 111.8 (I)(part), 4/17/90: Ord. 111.5 (part), 6/20/78) Section 12 - Outsourcing of Sworn Safety Personnel
VI-102-12.00
568
Item # 21.

Police and Fire services are currently provided by employees of the City within Departments of the City utilizing City owned facilities and equipment. Any proposal to outsource the public safety functions of these departments as currently organized may not be implemented without first being approved by the voters of the City of Milpitas. Outsourcing within the meaning of this Ordinance means laying off or terminating the employment of the employees currently providing these services and replacing those persons with personnel not employees of the City. This provision shall not affect the authority of the City to otherwise reduce its workforce, as provided in this Chapter, or to take disciplinary action regarding any employee for cause, or otherwise exercise management authority to organize these departments and personnel as allowed under this Code, the Personnel Rules and applicable MOU provisions. (Ord. No. 283, § 2, 11/6/12)
569
Item # 21.



April11,2022
Sentbyemailto:[email protected]
MrSteveMcHarris,CityManager
CityofMilpitas
455E.CalaverasBl.
Milpitas,CA95035

DearMr.McHarris,
WearelookingforwardtoattendingtheCityCouncilmeetingonApril19thwhereyouwillbeaskingthe CityCounciliftheywouldliketoprioritizethereviewoftheEleanortobecomeamemberoftherecently adoptedCSCDAWorkforceHousingProgram(“WHP”).Wehaveoutlinedinthisletterafewkeypointsto helpyouframeourrequesttotheCityCouncilthatevening. Background
Wehavebeeninworkingwiththepropertyowner(SummerHillApartmentCommunities)sinceJune2021 topresentthispropertytotheCityofMilpitas.Werealizethatyourstaffhadtotakeadeepdiveintothe CSCDAWHPtounderstandtheprogramandthebenefits,cost,andanyliabilitytotheCitybybecominga memberoftheWHP,andwhethertoconsideradoptingtheTuringasapartoftheWHP.Asweallknow, thisprocesswasverylong.WestoodpatientlyonthesidelineswhiletheCitywentthroughthisprocess, ultimatelydecidedtojointheWHPandadoptedtheTuringtobepartofWHPinMarch2020. BenefitstotheCity
Asyouknowwesubmittedourprojectdataandrequireddocumentsforyoutoreviewforconsideration ofnowadoptingtheEleanortotheWHP(SeetheattachedDropboxlinkbelow)onMarch16,2022.Aswe discussedovertheZoommeetingwehadonMarch29th,weareexcitedtobeabletopresentthis opportunitytomaketheEleanoramiddleͲincomehousingcommunitytothecityformanyyearstocome. AdoptingthiscommunitytobeapartoftheWHPwillhaveameaningfulimpacttotheresidentsofthe EleanorͲInfact,werecentlylearnedthat78%ofcurrentresidentswouldqualifyfortheProgram.This isaconsiderablenumberofexistingMilpitasresidentswhowillimmediatelyseeanaveragesavingsof theirrenttobe~$460permonthor$5,520peryear! NextSteps
Thegoodnewsisthatourapplicationisnotcenteredaroundtheheavyanalysisthatwentintothe decisionofiftheCityshouldjointheCSCDAWHPJPA,butrathernowit’sonlyadecisiontoaddthis PropertytotheCity’snewlyadoptedmembershipoftheCSCDAWHPJPA.Thus,thescopeofworkwill besignificantlylessforthe3rdͲPartyConsultant(s)wherethefocusshouldbeonthemeritsofthe EleanortobeincludedasapartoftheCity’sapprovedpropertiesunderthenewlyadoptedCSCDAWHP JPA.Thisprocessshouldmoveforwardwithoutalotofstafftimeandyourconsultantsshouldbeableto reviewandreportontheEleanor’sbondunderwritingveryquickly. 

570
Item # 22.

LettertoMr.SteveMcHarris
CityofMilpitas
April11,2022

2

Schedule:
Wehavereviewedthetimeframethatwewouldexpectthisprocesstotake,andhaveoutlinedthe followingscheduletobeveryachievable:
Date/Weekof: Milestone
3/16/22 OHGsubmittedtheApplicationforEleanortotheCity 4/19/22 CitytoinitiatepriorityreviewofEleanor
May9th: 3rdPartyReportfinalized(2+weekstocontract&prepare)* May12/13th: CityFinalizeStaffReport(usealltheinformationinDropboxlinkbelow) 5/17/22 CityCounciltoHearItemforconsiderationtoadoptEleanorasapartoftheCSCDAWHP Note:*WewouldsuggestthattheCityimmediatelycontractwiththeirconsultantstoexpeditethereview oftheinformationweprovidedtoyouonMarch16th.OHGiswillingtopayovertimetohavethe3rdParty ConsultantsreviewthebondunderwritingfortheEleanorwithinthetimeframenoted.Wewouldalso recommendthatifKMAisbackedup,thattheCityconsiderRSGtocompletethispropertyͲlevelreport (https://webrsg.comͲattentionMarkSawicki714.316.2194(Direct)).RSGhascompletedprojectreviews oftheWHPfornumerouscitiesacrossthestate.
SummaryofRequestforCityCounciltoconsiderattheCityCouncilMeetingonApril19,2022:

1. Prioritizeandimmediatelycommencethereviewprocesspursuanttotheschedulenoted above.

2. InitiateaReimbursementAgreementwhereOHGwillreimbursetheCityandConsultanttimeto expeditethisreview.

3. EstablishaclearunderstandingbetweentheCityCouncil,StaffandOHGthatanyreviewand approvalforEleanorwillneedtobeunderthesametermsandconditionsastheTuringandwill includethesamewaiversandsetofagreementsreachedbetweenWaterfordwiththeCity Council[Note:OHGworkswiththesameCSCDAbondcouncilandthereisnolatitudetomake anychangestowhatwasapprovedbytheCityCouncilearlierthismonth].

4. EstablishaclearunderstandingbetweentheCityCouncil,StaffandOHGthatcertaingoalsand performancemeasuresthatyourecommendedinyourstaffreportoftheTuring’sapplication werewaivedbytheCityCouncilandthosewaiverswouldmatchuptowhatEleanorwouldbe abletoacceptasapartofitsapproval.
Aswestatedinourprioremails,toacceleratethecityreviewandtoexpeditetheprocess,pleasefindthe Dropboxlinkbelowwhichcontainsthefollowingdocuments: x EleanorProjectMemo
x EleanorProforma
x DraftPublicBenefitAgreementforEleanor
x RedlineEleanorPublicBenefitAgreementvs.Turing x DraftApprovalResolution
https://www.dropbox.com/sh/mcqjvog7kdtbek7/AAAJC4RUXT17PbdHho0Z53Zga?dl=0 

571
Item # 22.

LettertoMr.SteveMcHarris
CityofMilpitas
April11,2022

3

ThankyouforyourconsiderationofourrequestonApril19,2022,andwelookforwardtoansweringany questionsthatyoumighthaveinthemeantime.


Sincerely,



BradGriggs
ManagingPartner

Blake|GriggsProperties,LLC
OpportunityHousingGroup,LLC
550HartzAvenue,Suite200
Danville,CA94526
M.415Ͳ235Ͳ7732
www.blakegriggs.com|www.opportunityhousinggroup.com

CC(byemail):
MembersoftheCityCouncilc/oMilpitasCityClerkͲ[email protected] CSCDA–JonPenkower,ManagingDirector[email protected] OHG–LaurenSeaver[email protected]
DeputyMilpitasCityManager–AshwiniKantak[email protected] 


l
572
Item # 22.

455 E. Calaveras Blvd., Milpitas, CA 95035

MEMORANDUM
City Manager’s Office
www.ci.milpitas.ca.gov
Superior Customer Service  Open Communication  Integrity and Accountability  Trust and Respect  Recognition and Celebration

DATE: April 15, 2022

TO: Mayor and Councilmembers

THROUGH: Steve McHarris, City Manager

FROM: Ashwini Kantak, Assistant City Manager
Sharon Goei, Building Safety and Housing Director

SUBJECT: Eleanor Apartments Project Proposal

BACKGROUND
At the March 15 City Council meeting, staff was directed to agendize a discussion about the potential conversion of Eleanor Apartments located at 312 Gates Drive to a moderate-income housing project through the California Statewide Communities Development Authority.

At the February 15 City Council meeting, Council adopted Goals and Performance Measures for this type of moderate-income housing program and presented recommendations for a Public Benefit Agreement (PBA) for a similar program for the Turing apartments located at 1355 McCandless Drive.

Although the Turing project team had made several changes to their original project proposal and draft PBA since the original proposal was submitted in May 2021, the adopted PBA still did not align with the Council’s adopted goals and measures for this type of program. Council deliberation included an acknowledgment that since this was a new concept for Milpitas, the Turing proposal could be considered for approval, while the process along with the adopted Goals and Performance Measures, provided ample information for future applicants to understand the City’s expectations for any other such project proposals.

The Eleanor Apartments project representative has stated that their proposed project will not be viable if they are required to comply with the recent Council adopted goals and performance measures. Their project team is seeking the same terms included in the Turing PBA.

We also remind the Council that, as noted in the February 15 staff report, Item 16, the approved PBA for the Turing project does not meet the adopted Goals and Performance Measures in several areas related to Affordability, Financial Considerations, Capital Investments, and Transparency and Oversight. The approved PBA also does not adequately mitigate potential future risks identified by the City’s financial consultants, City Attorney’s Office, and staff.

Another consideration for the proposed project is the availability of staffing resources. Although the Turing project team paid for consultant costs, a significant amount of staff time was spent on the project, which was not reimbursed, and diverted staff attention away from other City Council work priorities. Given the vacancy rate in Housing and the many federal and state-mandated projects currently underway, Housing staff will not be able to initiate this project without securing additional staffing resources to manage the project. Additionally, the Turing project required a considerable amount of time from staff in Finance and the City Manager’s Office, and from the City Attorney. With the Proposed FY 2022-2023 Budget currently underway, staff will only be able to initiate the proposed project analysis upon securing staff dedicated to working on this project. And at that time, the proposal analysis will require setting up a funding mechanism with the project applicant to pay for staffing and consultant costs. Additionally, procurement of consulting resources will require staff resources across multiple departments.

Attachments:

Attachment 1: Adopted Goals and Performance Measures
Attachment 2: Alignment of Proposal with Adopted Goals and Measures 573
Item # 22.
1 City of Milpitas
Framework for Evaluating
City Participation in Middle-Income Workforce Housing Proposals

GOALS AND PERFORMANCE MEASURES
G
OAL A: AFFORDABILITY LEVEL
Project will primarily serve Moderate Income Households during the entire bond period.

Performance Measures:

A1. Housing units will be below market-rate and affordable to Moderate-Income Households earning 81-120% average median income (AMI), as defined by the California Department of Housing and Community Development (HCD) maximum household income and rent limits for Santa Clara County. Units for Low-Income Households (80% AMI or below) as defined by HCD are also encouraged.

A2. Maximum rents shall be based on Moderate Income Households paying a maximum of the 30% of their gross household income for housing costs consisting of rent and utility expenses paid by tenants.

GOAL B: RENT INCREASES
Rent increases will be limited to maintain the affordability of the project for primarily Moderate Income Households during the entire bond period.

Performance Measures:

B1. Annual rent increases will not exceed 4% or the annual allowable percentage rent increase established by federal Department of Housing and Urban Development (HUD), whichever is lower.

B2. Owner or Property Administrator agrees to submit proposed rent increases for City review and approval that verifies affordability requirements/covenants will continue to be maintained. City will be allowed 30 days to review and approve the rent increase proposal.

AFFORDABILITY CONSIDERATIONS
ATTACHMENT 1
574
Item # 22.
2 B3. Owner or Property Administrator agrees to submit an annual report to City that certifies and confirms that affordability covenants, including rent increases, comply with HCD standards for affordability to Moderate Income Households.

GOAL C: EXISTING TENANTS
Existing project tenants will not be displaced by the public benefit, regulatory, or other agreements.

Performance Measures:

C1. Non-Qualified Tenants (exceeding 120% AMI per California Tax Credit Allocation Committee (CTCAC) standards) will be allowed to remain in unit paying market rents until they choose to move out.

C2. Qualified Tenants (120% AMI or below per CTCAC standards) will be allowed to benefit from a minimum 10% reduction in current project market rents.

GOAL D: LOCAL PREFERENCE POLICY
A preference program will be established for qualifying residents and employees with a primary work location in the City of Milpitas.

Performance Measures:

D1. Subject to City review and approval, Owner or Property Administrator agrees to establish and administer a tenant preference program with administrative guidelines, marketing plan, and screening procedures that define benefiting households and employees. Confirm compliance with state and federal fair housing regulations.

D2. P riority will be provided to qualifying teachers and administrative, maintenance, and support staff that are employed by the Milpitas Unified School District or other public education institution with a Milpitas job location.

GOAL E: REGIONAL HOUSING NEEDS ALLOCATION (RHNA) CREDIT Projects will qualify for full or partial RHNA credit, if feasible.

Performance Measures:

E1. Project complies with AB 787 criteria for full or partial RHNA credit:
a. No existing units affordable to very low, low, or moderate-income households; b. Affordable to moderate income households for 55 years; c. At least 10% reduction in average monthly rents from previous 12 months; d. Rents based on 100% AMI established by CTCAC;
e. Units in decent, safe, and sanitary condition;
f. Project not acquired by eminent domain;
g. Government monitoring program established to ensure affordability and occupancy by qualifying households; and
h. A public entity shall hold an assignable right to purchase development. 575
Item # 22.
3 GOAL F: QUALIFICATIONS OF PROJECT TEAM
Project will be owned and managed by a highly experienced and reputable Property Administrator and Property Manager.

Performance Measures:

F1: Property Administrator demonstrates a minimum of ten years of extensive expertise and financial capability in financing, developing, and managing at least 5,000 units of comparable market-rate and affordable (income and rent restricted) residential projects in California.

F2. Property Manager demonstrates a minimum of ten years of extensive financial and operations experience managing a portfolio of at least 5,000 units of comparable market-rate and affordable (income and rent restricted) residential projects in California, including administering local preference programs.

GOAL G: CITY EVALUATION OF PROPOSALS
Proposals will be evaluated for compliance with Goals and Performance Measures with professional and technical assistance as necessary.

Performance Measure:

G1. Project proponent deposits funds as determined by the City to retain independent financial, economic. and/or property management consultants to analyze the proposal and provide findings and recommendations on affordability terms, cashflow analysis, pro forma, property condition assessment, capital improvement needs, bond/financing structure, administrative fees, and draft agreements.

GOAL H CITY REVENUES
City participation will not result in a loss of City property taxes, special taxes, or property tax in lieu of vehicle license fees (PTILVLF).

Performance Measures:

H1. Project will fully backfill the City's any lost property tax and PTILVLF revenues through an upfront and/or annual payment of a Host Fee to the City with an annual increase of 2%. Host Fee shall be based on the post-sale assessed valuation of the property.

H2. Host and other applicable City fees will be paid before operating expenses, administrator fees, debt service (bond principal and interest), and any bond reserve fund deposits, and will be paid from other sources if operating revenue is insufficient to meet this obligation.

H3. For mixed used projects, property taxes pertaining to the non-residential portion of the property will continue to be paid.

FINANCIAL CONSIDERATIONS
576
Item # 22.
4 H4. Where applicable, an annual Infrastructure Fee will be paid equivalent to City special taxes pertaining to inclusion in a community facilities district or assessment district with annual increase as specified.

GOAL I. PROJECT FINANCIAL VIABILITY
Project demonstrates positive cashflow and ability to fully cover its debt service and operating expenses during the bond or agreement period to reduce financial risks and assure long-term viability.

Performance Measures:

I1. Through consultation with an independent real estate or economic consultant, income and expense assumptions conservatively reflect historical trends for residential projects in Milpitas or Santa Clara County.

J2. Project Condition Report demonstrates a minimum 1.0 Debt Coverage Ratio (DCR) during the entire bond period with rental income based on conservative assumptions and the affordability goals and performance measures in Goals A and B.

I3. Cash flow analysis and pro forma demonstrate ability to cover amortized principal and interest payments during the bond term based on conservative assumptions.

GOAL J: CITY FINANCIAL RISK/BOND STRUCTURE
The financing plan and bond structure for the project is sound and consistent with industry standards for multi-family revenue bonds and reduces City risks and liability.

Performance Measures:

J1. A minimum of 25% of the aggregate principal will be paid within 10 years of bond issuance; bond term will not exceed 35 years.

J2 Bonds will be optionally redeemable within 10 years of issuance with call premium consistent with investment grade municipal bonds.

J3 B ond principal redemption will be mandatory and paid under the same lien position as bond interest payments.

J4 A dministrator fees will be paid after payment of bond interest and principal, any bond reserve fund deposits, and payable with annual excess cashflow only.

J5 Bond issuance fees and expenses will be in line with other similar middle income housing programs in California.

J6. Bond issuer will notify the City of any material changes to the project during the bond term, including updates to cashflow analyses or pro formas as needed.

J7. Public Benefit Agreement or Regulatory Agreement includes indemnification clause that limits the City’s liability and exposure as the Project Host and program participant.
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5 J8. City will be entitled to 100% of the property’s reversion value at the end of the bond term, without any obligation to share any proceeds to other taxing entities.

GOAL K: REFINANCING/ADDITIONAL DEBT
City will have the authority to approve any refinancing, restructuring, or issuance of additional debt.

Performance Measure:

K1. Public Benefit Agreement, Regulatory Agreement, and/or Indenture include provisions that stipulate the City's approval authority for any debt refinancing, restructuring, or issuance of additional debt or encumbrances during the bond term.

GOAL L: CAPITAL IMPROVEMENTS
Capital improvement needs for the project are fully identified and funded for the entire bond or agreement period.

Performance Measures:

L1. Capital improvement and replacement needs with estimated costs are determined that cover the entire bond period.

L2. Project Condition Report (pro forma or cash flow analysis) demonstrates that capital improvement and replacement costs will be covered by project reserves and operating income during the entire bond period.

L3. A n updated capital improvement assessment will be prepared at least every five years, or sooner if requested by the City, that assesses the capital needs and expenses for the project during the remaining bond term and the sufficiency of reserve funds and operating income.

L4. Owner or Property Administrator agrees to fund an independent consultant approved by the City to prepare the capital improvement assessment and agrees to adjust reserve funds to cover revised capital costs for the project, if necessary.

GOAL M: CITY ENFORCEMENT AUTHORITY
City will have enforcement authority over management of the project to ensure compliance with goals and performance measures during the bond or agreement period.

Performance Measures:

M1. Public Benefit Agreement or Regulatory Agreement cites the City’s authority and remedies to enforce compliance with the housing affordability requirements.

LEVEL OF CAPITAL INVESTMENT

TRANSPARENCY AND OVERSIGHT
578
Item # 22.
6 M2. Public Benefit Agreement or Regulatory Agreement defines the City’s enforcement abilities, remedies, consequences, and resolution process if, upon review of annual certification and reports, project operations or responsible parties are found to be out of compliance with agreements.

GOAL N: MONITORING AND REPORTING
City will be provided with regular reports regarding the financial and operational performance of the project during the bond or agreement period for project monitoring.

Performance Measures:

N1. Certification: Owner or Property Administrator agrees to submit to the City an annual Certificate of Continuing Program Compliance for the project.

N2. Property Financial, Management, and Maintenance Reports: Owner or Property Administrator agrees to submit an annual report to the City that describes the project operations and finances, including but not limited to:
a. Rent roll and rent increases;
b. Vacancy rate;
c. Operating income and expenses;
d. Cashflow projection, operating funds, and reserves; e. Bond interest and redemption payments and all bond specific payments; f. Completed and planned capital improvements and replacements; and g. Documentation on the general condition of the Project.

N3. Independent Review: City reserves the right to require the property owner to fund an independent property and/or financial management consultant to review the reports required under N2 and provide an assessment of the project based on industry standards and best practices for management of residential property.

N4. Monitoring Fee: Owner or Project Administrator agrees to submit to City an annual monitoring fee to cover City staff costs for project oversight and monitoring, with provision for an annual fee increase.

GOAL O: PROJECT ADMINISTRATION AND MANAGEMENT
Project proponent demonstrates to the City that the project will comply with best real estate practices for management of residential property.

Performance Measures:

O1. Owner or Property Administrator agrees to submit the following plans for City review and approval prior to execution of PBA: Tenant Selection Plan, with screening and qualification procedures; Local Preference Policy (per Goal D); Maintenance Plan; Property Management Plan, including staffing; and Marketing Plan.

O2. City will have the authority to review and approve the selection of any replacement Property Administrator or Property Manager that may be proposed during the bond period, including new or revised agreements pertaining to the replacement company. 579
Item # 22.
15-Apr-22
Goal Performance Measure Comply? Comments
A. AFFORDABILITY LEVEL A1. Housing units below market-rate and affordable to Moderate-Income Households per HCD standards for Santa
Clara County. Units for Low Income Households encouraged.

No Based on CSCDA maximum rents and assuming same rent levels as Turing Project, 40% of units would not be affordable to Moderate- Income Households and no units would be affordable to Low- Income Households per HCD standards.

A2. Rents based on Moderate Income Households paying
maximum 30% of gross household income for housing costs (rent and utilities).

No Rents based on 30% of gross household income, but utility expenses are not included in calculating maximum rents per HUD standards.

B. RENT INCREASES B1. Annual rent increases will not exceed 4% or the annual allowable percentage rent increase established by HUD,
whichever is lower.

Yes Regulatory Agreement includes this provision.

B2. Owner agrees to submit proposed rent increases for City review and approval.

Yes City approval required for any amendments to affordability covenant in Regulatory Agreement per PBA.

B3. Owner agrees to submit an annual report to City certifying compliance with affordability covenants.

Yes Annual compliance certification is required per PBA.

C. EXISTING TENANTS C1. Non-Qualified Tenants (exceeding 120% AMI) allowed to remain in unit paying market rents.

Yes Non-Qualified Tenants (exceeding 120% AMI) allowed to stay in their units per Regulatory Agreement.

C2. Qualified Tenants (120% AMI or below) will benefit from a minimum 10% rent reduction.

No No guaranteed rent reduction for qualified existing tenants.

ATTACHMENT 2
Eleanor Apartments CSCDA Proposal

COMPLIANCE WITH COUNCIL-ADOPTED GOALS AND PERFORMANCE MEASURES

AFFORDABILITY CONSIDERATIONS
GOALS (15): YES - 2, NO - 2 , Partial or Pending - 11 COMPLIANCE SUMMARY:

PERFORMANCE MEASURES (41): YES - 10, NO - 25 , Partial or Pending - 6 COMPLIANCE ITEMIZED LIST:

Color Coding: YES (Green), NO (Red), Partial or Pending (White) Project Proponent: Opportunity Housing Group
580
Item # 22.

Goal Performance Measure Comply? Comments
D. LOCAL PREFERENCE POLICY D1. Owner will administer a tenant preference program. No Not currently verified or included on PBA D2. Preference to teachers and staff employed in public education institutions in Milpitas.

No Not currently verified or included in PBA
E. RHNA CREDIT E1. Project qualifies for full or partial RHNA credit, if feasible. No Project does not qualify for partial RHNA credit.

F. QUALIFICATIONS OF PROJECT
TEAM
F1: Project Administrator demonstrates extensive development, management and financial experience.

Pending Project Administrator not identified yet.

F2. Property Manager demonstrates extensive residential management experience, including affordable housing and preference programs.

Pending Property Manager not identified yet.

G. CITY EVALUATION OF

PROPOSALS
G1. Project proponent deposits funds for consultants to analyze proposal.

Pending Submittal of deposit pending.

H. CITY REVENUES H1. Project backfills City property tax and PTILVLF through annual Host Fee based on post-sale assessed valuation.

No Project will backfill Milpitas's share of property taxes and PTILVLF, but based on pre-sale assessed valuation.

H2. Host Fee is guaranteed and in a senior lien position. Yes Host Fee will be paid before administrator fees and principal and interest per PBA.

H3. Property taxes for non-residential portion of the property will continue to be paid.

Pending Confirm that retail portion will not be included in CSCDA property transfer.

H4. Annual Infrastructure Fee will be paid equivalent to City CFD 2008-1 special tax.

Yes Special tax will be paid, and will continue to be paid if property found to be exempt from tax per PBA.

I. PROJECT FINANCIAL VIABILITY I1. Income/expense assumptions conservatively reflect historical trends for residential projects in Milpitas or Santa Clara County.

No Project has not yet submitted cash flow analysis with income/expense assumptions to verify performance measure.

I2. Project demonstrates a minimum 1.0 Debt Coverage Ratio (DCR) with rental income based on Affordability Goals A and B.

No Project has not yet demonstrated minimum 1:1 DCR and ability to cover debt and expenses with operating income.

FINANCIAL CONSIDERATIONS

581
Item # 22.

Goal Performance Measure Comply? Comments
I3. Ability to make amortized principal and interest bond payments.

No Project has not yet demonstrated ability to make amortized principal and interest bond payments.

J. CITY FINANCIAL RISK/BOND

STRUCTURE
J1. Minimum 25% of principal paid within 10 years and bond term cannot exceed 35 years,
No CSCDA bonds are "turbo" bonds with no guarantee of principal payment; limited payment of principal in first 15 years based on projected cashflow.

J2. Bonds optionally redeemable within 10 years of issuance with call premium consistent with investment grade bonds.

No Provision not included in PBA.

J3. Bond principal redemption mandatory and in same lien position as bond interest payments.

No Provision not included in PBA.

J4. Administrator fee paid after bond principal and interest, bond reserve deposits, and only from excess cashflow.

No Provision not included in PBA.

J5. Bond issuance fess and expenses in line with similar middle income housing programs in California.

No If similar to Turing project, fees to project sponsors significantly exceed underwriting standards for similar municipal bonds.

J6. Bond issuer will notify City of any material changes to project financials during bond term.

No Provision not included in PBA.

J7. PBA includes indemnification clause to limit City’s liability and exposure.

No Limitation on liability section included in PBA, but indemnification provision not included.

J8. City will be entitled to 100% of the property’s reversion value at the end of the bond term.

Yes City not obligated to share proceeds with other taxing entities per PBA.

K. DEBT REFINANCING K1. PBA includes City approval authority for debt refinancing or restructuring.

Yes City approval of any refinancing with stipulated exceptions (e.g. to fund improvements) per PBA.

L. CAPITAL IMPROVEMENTS L1. Capital improvement needs and costs are determined for entire bond period.

No Project has not verified this yet.

L2. Capital improvement needs and costs covered by project reserves and operating income during entire bond period.

No Uncertain that reserve funds for capital improvements will be adequately funded during full bond term.

LEVEL OF CAPITAL INVESTMENT

582
Item # 22.

Goal Performance Measure Comply? Comments
L3. Capital improvement assessment prepared at least every five years.

Yes Provision included in PBA.

L4. Independent consultant to prepare Capital Needs
Assessment and reserve funds to be adjusted, if necessary.

No Provision not included in PBA.

M. CITY ENFORCEMENT

AUTHORITY
M1. City authority with remedies to enforce compliance with the affordability requirements.

No PBA does not include City enforcement authority and remedies for non-compliance with affordability covenants.

M2. City enforcement abilities, remedies, and consequences if project out of compliance.

No PBA does not include City enforcement authority and remedies for non-compliance with PBA and Regulatory Agreement.

N. MONITORING AND

REPORTING
N1. Owner submits annual Certificate of Continuing Program Compliance.

Yes Provision included in PBA.

N2. Owner submits annual Property Financial, Management, and Maintenance Reports.

Partial Partially addressed in PBA
N3. City reserves the right to require independent consultant to review annual monitoring reports.

No Provision not included in PBA.

N4. Owner agrees to submit annual monitoring fee to cover City oversight and monitoring costs.

No PBA does not require payment of annual City Monitoring Fee.

O. PROJECT ADMINISTRATION

AND MANAGEMENT
O1. Owner agrees to submit management and maintenance
plans.

No Provision not included in PBA.

O2. City authority to approve any replacement Project
Administrator or Property Manager.

Partial City allowed to comment on change of Property Manager per PBA, but no approval authority for change of Property Manager or Project Administrator.

TRANSPARENCY AND OVERSIGHT

583
Item # 22.