CityCouncil_RegularSession_Attachments_09_20_2022 — Milpitas City Council, September 20, 2022 (part 2 of 2)

1. PURPOSE

1.1. The City recognizes the value of partnership with other agencies and organizations in providing services that benefit the community and its residents.

1.2. The City may provide a donation or grant a reduction and/or waiver of fees to intergovernmental agencies or non-profit organizations that provide Milpitas community benefit.

2. POLICY

2.1. The City shall have the sole authority and the City Council shall have the final authority to approve Donations and Fee Waiver/Reduction requests.

2.2. The City Council shall evaluate donation and fee waiver/reduction requests at a scheduled City Council meeting.

2.3. Any requests for donation or fee waiver/reduction must be submitted in writing using the provided application form by the Recreation and Community Services Department.

2.4. In order for an organization to be eligible for a donation or fee waiver / reduction, the following criteria have to be met:

2.4.1. The applying organization must be:

2.4.1.1 A non-profit organization as described by the Internal Revenue Section such as 501(c)(3) or an intergovernmental agency;

2.4.1.2 Non-discriminatory, and non-political in nature;

2.4.2. Events must provide a community benefit within the City of Milpitas proper.

2.5. If the event requested for fee waiver is a fundraiser, the organization must demonstrate that at least 60% of fund raised will be of general benefit to the Milpitas community.

2.6. If the request for donation or fee waiver/reduction is for a community event, the event must be advertised, open to the public and no entrance fee shall be charged for the event.

2.7. Fee waivers/reductions only apply to services provided by the City during its regular course of business. Such fees may include rental fees for the City’s facilities or equipment, building permit fees or fire permit fees. Any deposits and/or City staff overtime costs required due to the event cannot be waived.

2.8. The City Council may grant donation or fee waiver/reduction to each organization once annually, regardless of how many branches or affiliations it may have.

Policy No:

Click or tap here to enter
text.

DONATION AND FEE WAIVER/

REDUCTION POLICY
Effective Date:
6/21/2022
Revision No:
1 Policy Administrator:

Recreation and Community Services
Next Review Due:

As needed
Related Policies and
Procedures:

Click or tap here to enter
text.

Approved by:

Click or tap here to enter text.

Council meeting date, agenda item #, and
vote
Date Approved:
6/21/2022
181
Item # C14.

CITY OF MILPITAS
Revision Date
Original 04/21/2006
6/21/2022

CITY COUNCIL DONATION AND FEE WAIVER/REDUCTION POLICY / POLICY #

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2.9. The fee waiver/reduction amount is subject to $1,500 maximum per fiscal year and the donation amount is subject to $500 maximum annually for each organization. A fee waiver/reduction request cannot be combined with a donation request.

2.10. To the extent possible, the City’s contribution should be recognized in the event fliers and/or advertising with the following statement, “This event made possible, in part, by the City of Milpitas.”

2.11. Within 60 days after completion of the event in which a donation was received or a fee waiver/reduction was granted by the City, the organization will provide a written report to the Director of Recreation and Community Services to include at minimum: number of participants, copies of all publicity of the event, any benefit to the community, amount of funds raised and an accounting of how the proceeds of the event will be dispersed.

2.12. Failure to abide by the rules and procedures as set forth in this document will result in the organization being denied for funding and/or fee waiver/reduction in the future.

3. PROCEDURE

3.1. The Recreation and Community Services Department shall maintain an application for Donation and Fee Waiver/Reduction Requests.

3.2. Upon receipt of an application, the Recreation and Community Services Department shall determine eligibility for a Donation and/or Fee Waiver/Reduction consistent with this Policy and inform the applicant of its determination in writing.

3.3. If eligibility is determined, the Director of Recreation and Community Services shall bring requests for donation or fee waiver/reductions to Council for approval at any regular or special meeting.

3.4. If ineligibility is determined, the applicant can appeal the Director of Recreation and Community Services’ determination to the City Manager. A request for appeal must be made, in writing, and delivered to the City Manager’s Office within seven (7) days of the applicant’s receipt of the determination of ineligibility. The request for appeal must state, in writing, the basis for the appeal and must contain all written documentation supporting each basis for appeal. The City Manager shall issue a decision, in writing, without hearing based on the documents presented.

3.5. Donation and Fee Waiver Budget

3.5.1. With each budget cycle, the City Council will establish an annual budget amount for donations or fee waivers/ reductions for unspecified community events. Except for extraordinary circumstances, donations and or fee waivers/reductions will not be granted once the budgeted amount has been allocated.

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Item # C14.

CITY OF MILPITAS

AGENDA REPORT
(AR)

Item Title: Consider Korean Language and Culture Foundation’s Annual Korean Alphabet Event Donation Request (Staff Contact: Renee Lorentzen, Director of Recreation and Community Services, 408-586-3409)
Category: Consent Calendar-Community Services and Sustainable Infrastructure Meeting Date: 9/20/2022
Recommendation: Approve a Donation of $500 for the Korean Language and Culture Foundation’s annual Korean Alphabet Event scheduled for October 2, 2022.

BACKGROUND:

On September 13, 2022, staff received a Donation and Fee Waiver/Reduction Policy request from the Korean Language and Culture Foundation for their annual Korean Alphabet Celebration Event scheduled for October 2, 2022 at the Milpitas Library. The request is for a $500 donation for the event.

ANALYSIS:

The Korean Language and Culture Foundation (Foundation) submitted the required application and documentation for the Korean Alphabet Celebration event which includes:

- City Council Donation and Fee Waiver/Reduction Policy request

The Foundation is requesting that City Council donate to the event in the amount of $500.

Milpitas City Council adopted an updated “City Council Donation and Fee Waiver/Reduction Policy” on June 21, 2022. Per the policy, eligible organizations can request City fees to be waived up to $1,500 or a donation amount up to $500 to be granted upon request. Eligible organizations are defined as “a non-profit organization as described by the Internal Revenue Section such as 501(c)(3) or an intergovernmental agency; Non- discriminatory, and non-political in nature.” Fee Waiver or Donation requests for events must provide a community benefit within the City of Milpitas proper. Applying organizations must provide proof of non-profit status from the federal Internal Revenue Service or the state Franchise Tax Board.

As required, the Korean Language and Culture Foundation provided a copy of its determination letter from the California Franchise Tax Board stating it is a tax-exempt organization and meets the requirements as outlined in the Council adopted Fee Waiver Policy.

POLICY ALTERNATIVE(S):

Alternative: Do not approve the fee waiver as requested.

Pros: The City’s General Fund will not incur the costs of the fees waived.

Con: Denial of the request may not allow the non-profit organization to hold the event in the Council Chamber.

Reason not recommended: This request is consistent with the Council approved Policy.

FISCAL IMPACT:
$25,000 was approved and included in the FY 2022-23 City budget for City Council’s Unallocated Community Promotions. If this request is approved by City Council, then $21,683 would remain in that line item of the current year’s budget.
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Item # C15.

RECOMMENDATION:

Approve a Donation of $500 for the Korean Language and Culture Foundation’s annual Korean Alphabet Event scheduled for October 2, 2022.

Attachment(s):

1. Application and Franchise Tax Board non-profit letter

2. City Council Donation and Fee Waiver/Reduction Policy 184
Item # C15.

City of Milpitas
Donation or Fee Waiver/Reduction Request Application Form for Non-Profit Organizations

Please provide a copy of the IRS tax-exempt letter with the application.

Name of Organization: __Korean Language and Culture Foundation_________________

Is there a Milpitas branch or affiliation? ________Yes______________________________________

Mailing Address: ___800 S. Abel St. #525, Milpitas, CA 95035

________________________________________________________________

Contact Person: __Eun-Hee Koo_________ Telephone No. _408-805-4554_________________

Email Address: [email protected]_______________________________________________

What is your request? Donation Amount Requested __$500.00___________________________ OR

Fee Requested to be waived (type and $ amount) ________________________________________

Event date(s): __October 2, 2022_______________________________________________________

What is the purpose of the event? __To celebrate the 579th Korean Alphabet Day and let City of Milpitas citizens experience Korean culture _______________________________________________________

How will the Milpitas community benefit from this event? __They will experience Korean culture including Korean traditional games, Korean custom and printing system._____________________________

What % of the fund raising proceeds will benefit Milpitas community? _No fundraising event__________________________

How will the City’s contribution (if granted) be recognized in any publicity? ________________________ It will be announced on the program and at the event.

Within 60 days after completion of the event for which a donation was received or a fee waiver/ reduction was granted by the City of Milpitas, your organization will provide a written report to the City Clerk to include at minimum: number of participants, copies of all publicity of the event, any benefit to the community, amount of funds raised and an accounting of how the proceeds of the event will be dispersed.

Signature of Officer: ____
____ Date: _9/7/2022_____________

Print Name & Title: _Eun-Hee Koo, Chairperson of Board of Directors________________________ 185
Item # C15.

STATE OF CALIFORNIA

FRANCHISE TAX BOARD
PO BOX 942857
SACRAMENTO CA 94257-0540
Entity Status Letter
Date:

ESL ID:

Why You Received This Letter
According to our records, the following entity information is true and accurate as of the date of this letter.

Entity ID:

Entity Name:

1. The entity is in good standing with the Franchise Tax Board.

2. The entity is not in good standing with the Franchise Tax Board.

3. The entity is currently exempt from
tax under Revenue and Taxation Code (R&TC) Section 23701

4. We do not have current information about the entity.

5. The
entity was administratively dissolved/cancelled on through the Franchise Tax Board Administrative Dissolution process.

Important Information
• This information does not necessarily reflect the entity's current legal or administrative status with any other agency of the state of California or other governmental agency or body. • If the entity's powers, rights, and privileges were suspended or forfeited at any time in the past, or if the entity did business in California at a time when it was not qualified or not registered to do business in California, this information does not reflect the status or voidability of contracts made by the entity in California during the period the entity was suspended or forfeited (R&TC Sections 23304.1, 23304.5, 23305a, 23305.1).
• The entity certificate of revivor may have a time limitation or may limit the functions the revived entity can perform, or both (R&TC Section 23305b).

Connect With Us
Web:

Phone:
ftb.ca.gov
800-852-5711 from 7 a.m. to 5 p.m. weekdays, except state holidays 916
-845-6500 from outside the United States
California
Relay Service: 711711 or 800-735-2929 (For persons with hearing or speech impairments) FTB 4263A WEB (REV 12-2019)
1108521552
9/13/2022
3431277
KOREAN LANGUAGE AND CULTURE FOUNDATION.
d.
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Item # C15.

CITY OF MILPITAS
Revision Date
Original 04/16/2013
6/21/2022

CITY COUNCIL POLICY

Page 1 of 2 ends

1. PURPOSE

1.1. The City recognizes the value of partnership with other agencies and organizations in providing services that benefit the community and its residents.

1.2. The City may provide a donation or grant a reduction and/or waiver of fees to intergovernmental agencies or non-profit organizations that provide Milpitas community benefit.

2. POLICY

2.1. The City shall have the sole authority and the City Council shall have the final authority to approve Donations and Fee Waiver/Reduction requests.

2.2. The City Council shall evaluate donation and fee waiver/reduction requests at a scheduled City Council meeting.

2.3. Any requests for donation or fee waiver/reduction must be submitted in writing using the provided application form by the Recreation and Community Services Department.

2.4. In order for an organization to be eligible for a donation or fee waiver / reduction, the following criteria have to be met:

2.4.1. The applying organization must be:

2.4.1.1 A non-profit organization as described by the Internal Revenue Section such as 501(c)(3) or an intergovernmental agency;

2.4.1.2 Non-discriminatory, and non-political in nature;

2.4.2. Events must provide a community benefit within the City of Milpitas proper.

2.5. If the event requested for fee waiver is a fundraiser, the organization must demonstrate that at least 60% of fund raised will be of general benefit to the Milpitas community.

2.6. If the request for donation or fee waiver/reduction is for a community event, the event must be advertised, open to the public and no entrance fee shall be charged for the event.

2.8. The City Council may grant donation or fee waiver/reduction to each organization once annually, regardless of how many branches or affiliations it may have.

Policy No:

Click or tap here to enter
text.

DONATION AND FEE WAIVER/

REDUCTION POLICY
Effective Date:
6/21/2022
Revision No:
1 Policy Administrator:

Recreation and Community Services
Next Review Due:

As needed
Related Policies and
Procedures:

Click or tap here to enter
text.

Approved by:

Click or tap here to enter text.

Council meeting date, agenda item #, and
vote
Date Approved:
6/21/2022
187
Item # C15.

CITY OF MILPITAS
Revision Date
Original 04/21/2006
6/21/2022

CITY COUNCIL DONATION AND FEE WAIVER/REDUCTION POLICY / POLICY #

Page 2 of 2 ends

2.12. Failure to abide by the rules and procedures as set forth in this document will result in the organization being denied for funding and/or fee waiver/reduction in the future.

3. PROCEDURE

3.1. The Recreation and Community Services Department shall maintain an application for Donation and Fee Waiver/Reduction Requests.

3.5. Donation and Fee Waiver Budget

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Item # C15.

CITY OF MILPITAS

AGENDA REPORT
(AR)

Item Title: Consider the Recommendations from Mayor Tran for Appointments to City Commissions (Contact: Mayor Tran, 408- 586-3029)
Category: Consent Calendar-Leadership and Support Services Meeting Date: 9/6/2022
Recommendation: Receive the recommendation from Mayor Tran and approve appointments to the Energy and Environmental Sustainability Commission and Youth Advisory Commission.

Background:

The City of Milpitas has 13 Commissions (including the Measure F Oversight Committee), with members appointed by the Mayor and confirmed by the City Council. The Commissions advise the Milpitas elected officials on a variety of community interest and policy areas.

Any resident interested in serving on a City Commission must complete a Commission Application and submit the form to the City Clerk. Copies of the applications are provided to the Mayor for his consideration. Per Government Code 40605, in a general law city where the office of Mayor is an elective office, the Mayor with the approval of the City Council, shall make all appointments to boards, commissions, and committees unless otherwise specifically provided by statute.

Current Commissioners may seek to be reappointed upon the expiration of their current term, but reappointment to a new term is not automatic. Those Commissioners seeking reappointment must contact the City Clerk and the Mayor to convey their request. Re-appointment must be recommended by the Mayor and confirmed by the City Council.

Analysis:

Mayor Tran is making the following recommendations for appointment:

Energy and Environmental Sustainability Commission:

1. Appoint Carmelo Coronel to Commissioner seat with a term expiring October 2025.

Youth Advisory Commission:

1. Reappoint Nia Gupte, Crystal Huang, and Rachel Plummer to terms expiring September 2025.

2. Appoint Natalie Chen and Vanessa Lam to terms expiring September 2025.

3. Appoint Ashton Chen as Alternate No. 1 with a term expiring September 2025.

4. Appoint Parnika Sadhu as Alternate No. 2 with a term expiring September 2025.

All recommended Commissioner appointments have been reviewed and confirmed by the City Clerk’s office.

Fiscal Impact:

There is no fiscal impact associated with this item.

Recommendation:

Receive the recommendation from Mayor Tran and approve appointments to the Energy and Environmental Sustainability Commission and Youth Advisory Commission.

Attachments:

1. Applications 189
Item # C16.
190
Item # C16.
1 Karen Chew
From: Nia Gupte
Sent: Friday, July 15, 2022 3:48 PM
To: City Clerk
Subject: Commission Reappointment Form
CAUTION: This email originated from outside your organization. Exercise caution when opening attachments or clicking links.

To whoever it may concern,
I hope this email finds you well. Attached below is my Commission Reappointment Form as a request to be reappointed to the Youth Advisory Commission. Please let me know if you have any questions, or encounter any errors with the file.

Have a great day.

Best Regards,
Nia Gupte
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Item # C16.
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Item # C16.

CITY OF MILPITAS

YOUTH COMMISSION APPLICATION

_____________________________________________________
PROVIDE COMPLETE INFORMATION (in black ink) COMMISSION APPLYING FOR 

If you are only applying for the Youth Commission, please indicate that on the line that states “Commission Applying for.” If you would like to serve as a nonvoting member on another commission, see instruction below. Please note that you may apply for the Youth Commission and nonvoting commissions.

The City allow one nonvoting youth to server on the commissions listed below. Please indicate by checking the boxes below which commissions you would like to serve on as a nonvoting member. Please select all commissions you are interested in. The Mayor will review your application and make appointments as appropriate.

ARTS COMMISSION

COMMUNITY ADVISORY COMMISSION

ECONOMIC DEVELOPMENT & TRADE COMMISSION

LIBRARY & EDUCATION COMMISSION

PARKS, RECREATION & CULTURAL RESOURCES COMMISSION

PUBLIC SAFETY & EMERGENCY PREPAREDNESS COMMISSION

SCIENCE, TECHNOLOGY & INNOVATION COMMISSION

SENIOR ADVISORY COMMISSION

VETERANS COMMISSION

Name: First (middle) Last

Address: Number Street (apt. # if needed) City & Zip Code

Telephone Number(s) e-mail address

Education: Please indicate your grade & school: _______________________________________

Briefly describe the personal qualifications you possess which you believe would be an asset (additional information may be attached):

I have sufficient time to devote to this responsibility and will attend the required meetings if I am appointed to fill a future vacancy. I hereby certify that all statements contained in this application are true.

__________________________________________________________ ____________________________________ Signature Date

Appointments to Commissions are made by the Mayor with the concurrence of the City Council. Applications not acted upon will expire after one year from the date submitted unless renewed by the applicant.

PLEASE BE AWARE THAT ALL COMMISSION APPLICATIONS ARE PUBLIC RECORD E-mail, send in US mail or drop off your completed application to:

City Clerk, Milpitas City Hall 3rd floor, 455 E. Calaveras Blvd., Milpitas, CA 95035, email: [email protected] Youth Advisory Comission
11th grade, Milpitas High School
05/14/2022
Natalie Chen My qualifications involve my dedication to the community and my communication skills. I am the founder of "Mentors for Milpitas," a nonprofit that provides free public speaking classes to disenfranchised students with limited English fluency. My passion for improving Milpitas will shine during committee meetings, where I will propose innovative ideas. Additionally, as the winner of multiple speech competitions, I can convey my thoughts in an effective, thoughtful manner, allowing me to provide a unique perspective on any discussed topics. ✔
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Item # C16.

CITY OF MILPITAS

AGENDA REPORT
(AR)

Item Title: Accept Commissioner Resignations (Staff Contact: Suzanne Guzzetta, Acting City Clerk, 408-586-3001)
Category: Consent Calendar-Leadership and Support Services Meeting Date: 9/20/2022
Recommendation: Accept the resignation of Khloe Cruz from the Youth Advisory Commission and Dana Arbaugh from the Library and Education Advisory Commission; and direct the Acting City Clerk to post the notice of unscheduled vacancy.

BACKGROUND:

In accordance with the City of Milpitas Commission By-Laws adopted as Resolution No. 7702, any member or alternate member of a Commission who is no longer available to serve, must submit a resignation in writing by sending a written communication to the Mayor and the City Clerk. The written resignation must then be accepted and confirmed by City Council via action on the consent calendar at a regularly scheduled City Council meeting. Khloe Cruz submitted a notice of resignation from the Youth Advisory Commission, and Dana Arbaugh submitted a notice of resignation for the Library and Education Advisory Commission.

ANALYSIS:

By state law, a Notice of an Unscheduled Vacancy must be posted by the City Clerk to advertise the vacant Commission seat. Final appointment to the board, commission, or committee for the Unscheduled Vacancy shall not be made by the legislative body for at least ten working days after the posting of the notice in the Clerk’s office. The notice of the unscheduled vacancies for the Youth Advisory Commission and Library and Education Advisory Commission will be posted Wednesday, August 21, 2022.

FISCAL IMPACT:

There is no fiscal impact associated with this item.

RECOMMENDATION:

Accept the resignation of Khloe Cruz from the Youth Advisory Commission and Dana Arbaugh from the Library and Education Advisory Commission; and direct the Acting City Clerk to post the notice of unscheduled vacancy.

Attachments:

1. Email from Commissioner Khloe Cruz

2. Email from Commissioner Dana Arbaugh

201
Item # C17.

From: khloe cruz
Sent: Friday, September 9, 2022 11:44 AM
To: Anthony Teschera
Subject: Stepping Down As a Commissioner

CAUTION: This email originated from outside your organization. Exercise caution when opening attachments or clicking links.

Good morning Mr.Teschera,

Unfortunately, I’ve made the decision that I will not be continuing in the next term for YAC as a Commissioner. Thank you for the opportunities and experience you all have provided for me. Good luck with the next, and future terms.

Thank you,
Khloe Cruz
202
Item # C17.

From: John Macon
To: Suzanne Guzzetta
Cc: Karen Chew
Subject: FW: Resignation from Library Commission (Dana Arbaugh) Date: Tuesday, September 13, 2022 1:34:33 PM
Good Afternoon Suzanne and Karen,
Here is the letter of resignation from Dana Arbaugh.

Regards,
John
-----Original Message-----
From: Dana Arbaugh < >
Sent: Thursday, August 4, 2022 2:36 PM
To: Rich Tran <rtran@ci milpitas.ca.gov>
Cc: John Macon <jmacon@ci milpitas.ca.gov>; Jennifer Weeks <[email protected]>; Kelly McKean <[email protected]>; Stephen Fitzgerald <[email protected]> Subject: Resignation from Library Commission
CAUTION: This email originated from outside your organization. Exercise caution when opening attachments or clicking links.

Dear Mayor Tran,
My wife and I have moved into the gated retirement community, The Villages, in south San Jose.

At this point in
our lives we need to cut back on our volunteer activities. Thus, after serving Milpitas on three different commissions plus the Friends of Library Board, I need to resign now from the Milpitas Library Commission. After 42 years of living in Milpitas, we will always have fond memories of such a nice city.

Sincerely, Dana Arbaugh
Sent from my iPhone
203
Item # C17.

CITY OF MILPITAS

AGENDA REPORT
(AR)

Item Title: Second Reading of Ordinance No. 228.1 of the City Council of the City of Milpitas Adding Chapter 9 (“Use Of Rights-Of-Way And Public Property”) to Title X (“Streets And Sidewalks”) of the Milpitas Municipal Code and Adding Section X- 10-1.03 to Chapter 10 (“Structures Or Objects On Sidewalks Or Public Ways”) to Title X (“Streets And Sidewalks”) of the Milpitas Municipal Code (Staff Contact:

Michael Mutalipassi, City Attorney, 408-586-3041)
Category: Leadership and Support Services
Meeting Date: 9/20/2022
Recommendation: Move to waive second reading and adopt Ordinance No. 228.1 of the City Council of the City of Milpitas adding Chapter 9 (“Use Of Rights-of-way and Public Property”) to Title X (“Streets and Sidewalks”) of the Milpitas Municipal Code and adding Section X-10-1.03 to Chapter 10 (“Structures or Objects on Sidewalks or Public Ways”) to Title X (“Streets and Sidewalks”) of the Milpitas Municipal Code.

Background:

This Ordinance was introduced at the September 6, 2022 regular meeting of the City Council. The Ordinance is now ready for its second reading and adoption.

Fiscal Impact:

There is no cost to adopt the ordinance. There will, however, be costs associated with the enforcement of the ordinance. The City will expend police resources to enforce the ordinance and public works resources on potential disposal or storage of property left in the public right-of-way.

California Environmental Quality Act:

The action is not considered a project under CEQA as there will be no direct, or reasonably foreseeable indirect physical change in the environment.

Recommendation:

Move to waive second reading and adopt an Ordinance of the City Council of the City of Milpitas Adding Chapter 9 (“Use Of Rights-of-way and Public Property”) to Title X (“Streets and Sidewalks”) of the Milpitas Municipal Code and Adding Section X-10-1.03 to Chapter 10 (“Structures or Objects on Sidewalks or Public Ways”) to Title X (“Streets and Sidewalks”) of the Milpitas Municipal Code.

Attachment:

Ordinance of the City Council of the City of Milpitas Adding Chapter 9 (“Use Of Rights-of-way and Public Property”) to Title X (“Streets and Sidewalks”) of the Milpitas Municipal Code and Adding Section X-10-1.03 to Chapter 10 (“Structures or Objects on Sidewalks or Public Ways”) to Title X (“Streets and Sidewalks”) of the Milpitas Municipal Code

204
Item # C18.

Ordinance No. ___

1 REGULAR

NUMBER: ___.__

TITLE: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF MILPITAS ADDING CHAPTER 9 (“USE OF RIGHTS-OF-WAY AND PUBLIC PROPERTY”) TO TITLE X (“STREETS AND SIDEWALKS”) OF THE MILPITAS MUNICIPAL CODE AND ADDING SECTION X-10-1.03 TO CHAPTER 10 (“STRUCTURES OR OBJECTS ON SIDEWALKS OR PUBLIC WAYS”) TO TITLE X (“STREETS AND SIDEWALKS”) OF THE MILPITAS MUNICIPAL CODE

HISTORY: This Ordinance was introduced (first reading) by the City Council at its meeting of ____________________, upon motion by_________________________ and was adopted (second reading) by the City Council at its meeting of _______________, upon motion by ____________________________. The Ordinance was duly passed and ordered published in accordance with law by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

ATTEST: APPROVED:

________________________________ __________________________ Suzanne Guzzetta, Acting City Clerk Rich Tran, Mayor

APPROVED AS TO FORM:

________________________________
Michael Mutalipassi, City Attorney

BE IT ORDAINED BY THE CITY OF MILPITAS AS FOLLOWS:

WHEREAS, the homeless crisis has reached epic proportions across the State of California having significant effects on the City of Milpitas (the “City”); and 205
Item # C18.

Ordinance No. ___

2 WHEREAS, in order to sustainably address street homelessness, a trauma informed approach must be suitably applied across the City; and
WHEREAS, it is the obligation of the City to keep its public rights of way clean and available for public use, and to protect the public health, safety, and access by all people, and WHEREAS, the City should seek to accomplish the aforementioned objectives in a manner that preserves the dignity and safety of all residents and exhausts alternative models to promote compliance, and
WHEREAS, maintaining pedestrian and authorized commercial activity on public sidewalks is essential to public safety, thriving neighborhoods and a vital economy in the City, and
WHEREAS, sitting or lying down is not the customary use of the public sidewalks, and WHEREAS, the need to maintain pedestrian and commercial traffic is greatest during the hours of operation of businesses, shops, restaurants, and other City commercial enterprises when public sidewalks are congested, and when City residents are most likely to use their neighborhood sidewalks, and
WHEREAS, persons who sit or lie down on public sidewalks during business hours threaten the safety of pedestrians, especially the elderly, disabled, vision-impaired, and children.

Persons who sit or lie down also deter residents and visitors from patronizing local shops, restaurants, and businesses, and deter people from using the sidewalks in their neighborhoods, and
WHEREAS, business areas and neighborhoods become dangerous to pedestrian safety and economic vitality when individuals block the public sidewalks. This behavior causes a cycle 206
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Ordinance No. ___

3 of decline as residents and visitors go elsewhere to walk, meet, shop, and dine, and residents become intimidated from using the public sidewalks in their own neighborhoods, and WHEREAS, lying down or sitting is an incompatible use of the sidewalk in residential and commercial areas, and in order to prevent displacement of violators from one neighborhood to another, the need for regulation applies Citywide.

NOW, THEREFORE, the City Council of the City of Milpitas does ordain as follows:

SECTION 1. RECORD AND BASIS FOR ACTION : The City Council has duly considered the full record before it, which may include but is not limited to such things as the City staff report, testimony by staff and the p ublic, and other materials and evidence submitted or provided to the City Council. Furthermore, the recitals set forth above are found to be true and correct and are incorporated herein by reference.

SECTION 2 AMENDMENT OF MILPITAS MUNICIPAL CODE: That Chapter 9 (“Use of Rights-of-way and Public Property”) To Title X (“Streets And Sidewalks”) Of The Milpitas Municipal Code is added to read as follows:

Chapter 9 - USE OF RIGHTS-OF-WAY AND PUBLIC PROPERTY
X-9-1.00 - SITTING, LYING, OR SLEEPING OR STORING, USING, MAINTAINING,

OR PLACING PERSONAL PROPERTY IN THE PUBLIC RIGHT-OF-WAY (a) No person shall obstruct a street, sidewalk, or other public right-of-way:
(1) by sitting, lying, or sleeping, or by storing, using, maintaining, or placing personal property, or by erecting any tent or structure in a manner that impedes passage, as provided by the Americans with Disabilities Act of 1990, Pub. L, No. 101-336, 104 Stat. 328 (1990), as amended from time to time;
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Ordinance No. ___

4 (2) by sitting, lying, or sleeping, or by storing, using, maintaining, or placing personal property, or by erecting any tent or structure within ten feet of any operational or utilizable driveway or loading dock;
(3) by sitting, lying, or sleeping, or by storing, using, maintaining, or placing personal property, or by erecting any tent or structure within five feet of any operational or utilizable building entrance, building exit, or any area designated as an emergency egress pathway or corridor;
(4) by sitting, lying, or sleeping, or by storing, using, maintaining, or placing personal property, or by erecting any tent or structure within five feet of any fire hydrant, fire plug, or other fire department connection;
(5) by sitting, lying, or sleeping, or by storing, using, maintaining, or placing personal property, or by erecting any tent or structure within the public right-of-way in a manner that obstructs or unreasonably interferes with the use of the right-of-way for any activity for which the City has issued a permit;
(6) by sitting, lying, or sleeping, or by storing, using, maintaining, or placing personal property, or by erecting any tent or structure within the public right-of-way between seven (7:00) a.m. and eleven (11:00) p.m.
(b) No person shall obstruct any portion of any street or other public right-of- way open to use by motor vehicles, or any portion of a bike lane, bike path, or other public right-of-way open to use by bicycles, by sitting, lying, or sleeping, or by storing, using, maintaining, or placing personal property, or by erecting any tent or structure anywhere within the street, bike lane, bike path, or other public right-of-way, as specified for use by motor vehicles or bicycles. (c) Except as limited by Subsection (d), no person shall:
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5 (1) sit, lie, sleep, or store, use, maintain, place personal property, or erect any tent or structure in or upon any street, sidewalk, or other public right-of-way within the distance stated on the posted signage (up to a maximum of 500 feet) of a property designated as a sensitive use. For a property to be designated as a "sensitive use," the property must be a Public Building, School, Day Care Center, Public Park, Recreation Center, or Public Library;
(2) sit, lie, sleep, or store, use, maintain, place personal property, or erect any tent or structure in or upon any street, sidewalk, or other public right-of-way within the distance stated on the posted signage (up to a maximum of 500 feet) of a designated overpass, underpass, tunnel, bridge, pedestrian bridge, wash, or spreading ground, where the City Council determines, in the designating resolution, that the public health, safety, or welfare is served by the prohibition, including, without limitation, by finding that sleeping or lodging within the stated proximity to the designated area is unhealthy, unsafe, or incompatible with safe passage;
(3) sit, lie, sleep, or store, use, maintain, place personal property, or erect any tent or structure in or upon any street, sidewalk, or other public right-of-way that has been posted with signage prohibiting sitting, lying, sleeping, or storing, using, maintaining, or placing personal property. In order to designate a section of street, sidewalk, or other public right-of-way as prohibited under this subdivision, the City Council shall determine, in a designating resolution and based on specific documentation, that the circumstances of continued sitting, sleeping, lying, storing personal property, or otherwise obstructing the public right-of-way at that location poses a particular and ongoing threat to public health or safety. For each such location, a prohibition pursuant to 209
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6 this subdivision shall be effective for a period of time specified in the resolution, but not to exceed one year.
(d) No person shall be found to be in violation of any prohibition set forth in Subsection (c), unless and until: (i) the City Council has taken action, by resolution, to designate a specified area or areas for enforcement against sitting, lying, sleeping, or storing, using, maintaining, or placing personal property, erecting a tent or structure, or otherwise obstructing the public right-of-way; (ii) the City has posted signage at the designated area or areas set forth in the resolution, with such signage including reference to any required findings adopted in the resolution, and giving notice of the date after which no sitting, lying, sleeping, or storing, using, maintaining, or placing personal property, or otherwise obstructing the public right-of-way will be allowed; and (iii) at least 7 calendar days have passed from the date on which the signage is posted at the designated area or areas. For the purpose of this section signage may be attached to existing structures or foliage.
(e) Violations of this section involving a person who willfully resists, delays, or obstructs a City employee or contractor from enforcing this section or who willfully refuses to comply after being requested to do so by an authorized City employee shall be subject to the penalties set forth in Milpitas Municipal Code section I-1-4.09-2.00. All other violations of this section shall be enforceable pursuant to Milpitas Municipal Code section X-9-3.00. Violation of this section constitutes a public nuisance that may be abated pursuant to Milpitas Municipal Code section X- (f) The prohibitions in section shall not apply to any person:
(1) Sitting or lying down on a public sidewalk due to a medical emergency; (2) Using a wheelchair, walker, or similar device as the result of a disability; 210
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7 (3) Operating or patronizing a commercial establishment conducted on the public sidewalk pursuant to a sidewalk use permit;
(4) Participating in or attending a parade, festival, performance, rally, demonstration, meeting, or similar event conducted on the public sidewalk pursuant to and in compliance with a street use or other applicable permit;
(5) Sitting on a fixed chair or bench located on the public sidewalk supplied by a public agency or by the abutting private property owner; (6) Sitting in line for goods or services unless the person or person's possessions impede the ability of pedestrians to travel along the length of the sidewalk or enter a doorway or other entrance alongside the sidewalk; or
(7) Who is a child seated in a stroller.
(g) No person shall be cited under this Section unless the person engages in conduct prohibited by this Section after having been notified by a peace officer that the conduct violates this Section.

X-9-2.00 – ABATEMENT OF PERSONAL PROPERTY, TENTS, AND STRUCTURES IN

THE PUBLIC RIGHT-OF-WAY
(a) Personal property, tents and structures stored in violation of Milpitas Municipal Code section X-9-1.00 constitute a public nuisance that may be abated in accordance with the following requirements.
(b) Notices.
(1) Notice of Intent to Remove Property. The City shall provide residents in violation of section X-9-1.00 notice of the City’s intent to remove property no less than 24 hours in advance of any action to remove property. Notice shall be in writing and shall be 211
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8 served personally on the resident or residents in possession of the property when the City official or employee enforcing the prohibition serves the notice. In addition, the City official or employee shall post the notice on or near the property, so as reasonably to communicate the notice to persons with an interest in such property but not present during the attempt to serve notice. The notice shall contain the following information:
(A) the location of the property constituting a nuisance; (B) the date and time notice is served or posted;
(C) a statement that the property violates section X-9-1.00; (D) a statement that the City will remove the property 24 hours after the date and time of the notice;
(E) a statement that there is Housing or Shelter and Homeless Services available for residents and the phone number and address to contact in order to obtain the Housing or Shelter and Homeless Services;
(F) a statement that any personal property remaining at the location when the City returns to abate the nuisance will be impounded for no fewer than 90 days and will be discarded thereafter if not claimed; and
(G) the address, phone number, and operating hours of the location where the personal property will be stored and may be retrieved and that the City will charge no fee for storage or retrieval.
(2) Notice Following Abatement. When the City removes personal property, a written notice shall be given conspicuously posted in the area from which the personal property was removed. The notice shall contain the following information:
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9 (A) the location of the property removed;
(B) a statement that the property violated section X-9-1.00; (C) a general description of any personal property removed; (D) the date and time the personal property was removed; (E) a statement that the personal property will be stored for at least 90 days, and the address, phone number, and operating hours of the location where the personal property is being stored and may be retrieved and that the City will charge no fee for storage or retrieval; and
(F) a statement that if the personal property is not retrieved within 90 days, it will be discarded.

X-9-3.00 - PENALTIES
(a) Violations of any section of this chapter shall be subject to the penalties set forth:
(1) First Offense. Any person violating any provision of this Chapter shall be guilty of an infraction. Upon conviction, the violator shall be punished by a fine of not less than $50 or more than $100 and/or community service, for each provision violated. (2) Subsequent Offenses. Any person violating any provision of this Chapter within 24 hours after violating and being cited for a violation of this Chapter shall be guilty of a misdemeanor and shall be punished by a fine of not less than $300 and not more than $500, and/or community service, for each provision violated, or by imprisonment in the County Jail for a period of not more than ten (10) days, or by both such fine and imprisonment. Any person violating any provision of this Section within 120 days after the date of conviction of a violation this Section shall be guilty of a misdemeanor and shall be punished by a fine of not less than $400 and not more than $500, and/or 213
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10 community service, for each provision violated, or by imprisonment in the County Jail for a period of not more than thirty (30) days, or by both such fine and imprisonment.

X-9-4.00 - REPORTING
Upon the request of the City Council, the Police Department shall make a written report to the Mayor and the City Council that evaluates the effectiveness of enforcement of this Chapter on the City's neighborhoods.

SECTION 4 AMENDMENT OF MILPITAS MUNICIPAL CODE: That Chapter 10 (“Structures or Objects on Sidewalks or Public Ways”) to Title X (“Streets And Sidewalks”) of the Milpitas Municipal Code is added to read as follows:

X-10-1.03
The provisions of this Chapter shall not apply to any detached tent, detached structure, or other detached object used for sitting, sleeping, or lying outside by a person who cannot otherwise obtain shelter.

SECTION 5. SEVERABILITY: The provisions of this Ordinance are separable, and the invalidity of any phrase, clause, provision or part shall not affect the validity of the remainder.

SECTIN 6. EFFECTIVE DATE AND POSTING: In accordance with Section 36937 of t he Government Code of the State of California, this Ordinance shall take effect thirty (30) days from and after the date of its passage. The City Clerk of the City of Milpitas shall cause this Ordinance or a summary thereof to be published in accordance with Section 36933 of the Government Code of the State of California.
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1 CITY OF MILPITAS

AGENDA REPORT
(AR)

Item Title: Conduct a Public Hearing and Introduce an Ordinance No. 38.846 Amending Sections of Chapter 10, Title XI of the Milpitas Municipal Code Relating to Non-Residential Building Heights (Staff Contact:

Ned Thomas, Planning Director, 408-586-3273)
Category: Public Hearings-Community Development
Meeting Date: 9/20/2022
Recommendations: (1) Conduct a public hearing and move to close the hearing following comments.
(2) City Attorney shall read aloud title of the Ordinance. (3) Move to waive the first reading beyond the title and introduce an Ordinance amending sections of Chapter 10 of Title XI of the Milpitas Municipal Code relating to Non-Residential Building Heights and determine that the Municipal Code amendment is exempt from environmental review under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15183 (Projects Consistent with a General Plan) and 15061(b)(3) (Common Sense Exemption).

Background
The proposed ordinance provides greater clarity and guidance regarding standards for maximum height for non-residential buildings in three of the city’s commercial zones: General Commercial (C2), Highway Services (HS) and Town Center (TC). The Zoning Ordinance does not currently state the maximum allowable height for buildings in these zones – the Commercial Zone Development Standards table (Table XI-10-5.03- 1) shows the maximum height for primary buildings in these zones as “None.”

In practice, the heigh t of proposed new buildings or modifications to existing buildings in these zones is reviewed and determined through the Site Development Permit process; however, the lack of specific standards for building height creates uncertainty not only for project applicants, but also for property owners and residents in the vicinity of proposed development sites. It could also put the Planning Commission in a difficult and complicated position if an applicant were to propose a very tall building that was significantly out of scale with its surroundings and not consistent with the context of the surrounding area, because the Zoning Ordinance does not currently provide clear guidance as to how an appropriate building height should be determined or what factors should be considered as part of this decision.

To rectify these circumstances, Planning staff proposes to add a specific maximum height (by right) of 35 feet or three stories for primary buildings in the General Commercial, Highway Services, and Town Center zones as standards in the Commercial Zone Development Standards table. For properties in these zones that are located within 500 feet of the boundary of a Single Family Residential (R1) or One and Two-Family Residential (R2) zone, the building height would be limited to 30 feet or 2.5 stories, consistent with the maximum height in those residential zones.

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2 In addition, staff proposes to allow additional building height through discretionary review in the Industrial Park (MP), General Commercial (C2), and Town Center (TC) – up to 75 feet or six stories – with a Conditional Use Permit (CUP) (note: this provision would not apply to properties located within 500 feet of the boundary of a low-density residential zone (R1 or R2)). The Zoning Ordinance currently allows additional height beyond three stories or 35 feet, with no maximum height specified, in the MP and TC districts with approval of a CUP. The proposed ordinance would add C2 to the zones where additional height may be conditionally permitted and set the 75-foot/six-story maximum). Specific new findings that would apply to a CUP requesting building height in excess of the by-right standard are also included in the proposed amendments.

The Planning Commission considered the proposed ordinance for Zoning Code Amendments at its meeting on June 8, 2022. Following public comment, the Planning Commission requested that staff make minor changes to the Zoning Code Amendments to further limit non-residential building heights within 100 feet of the boundary of a low -density residential zone (R1 or R2) to two stories or 30 feet , and then unanimously adopted Resolution 2 2-006 (Attachment B) recommending that the City Council adopt the proposed Ordinance (with the suggested changes).

On June 14, 2022, the City Council held a discussion about the draft zoning amendments relating to non - residential building heights. Members of the Council supported the Planning Commission’s recommendations and directed staff to revise the draft zoning amendments accordin gly, and to bring forth the proposed Ordinance to the City Council for formal action and adoption.

On August 9, 2022, the City Council held a public hearing to solicit public comment on the proposed zoning ordinance amendment. The Council approved the fir st reading of the Ordinance and it was subsequently scheduled for a second reading and adoption at the following City Council meeting on August 16, 2022. At that meeting, Mayor Tran requested that adoption of the proposed zoning ordinance amendment be postponed to a future meeting and directed staff to meet with members of the Milpitas Involved Citizens (MIC) neighborhood group to review the proposed amendment and resolve any concerns.

Changes to Draft Ordinance Based on Discussions with MIC Staff met with MIC members at City Hall on August 26, 2022, to discuss the proposed zoning ordinance text amendment. Staff and MIC members agreed on the following minor modifications to the draft amendment:
 Increase the buffer zone, where parcels are not eligible for additional discretionary building height with approval of a CUP, from the original proposal of 100 feet to a minimum of 500 feet.  Relocate existing language in the zoning ordinance allowing ad ditional discretionary height with approval of a Conditional Use Permit (CUP) to the Notes column of Table XI-57.04-1 in MMC Section XI-57.04 “Conditional Use Permits and Minor Conditional Use Permit.” Format the relocated terms as two additional findings that must be made for approval of a CUP for additional discretionary height.

The two additional findings are: 1) that the building will not create a “dominating visual prominence” that is incongruent with the neighborhood, and; 2) the building meets all other applicable development standards for the site where it is located.
 Correct a typographical error in the footnotes of Table XI-10-57-04.1 to reference the correct footnote.

Overview of Draft Ordinance
The proposed ordinance includes amendments to the following sections of the Zoning Code (Title XI, Chapter 10 of the Milpitas Municipal Code):

Commercial Zone General Development Standards (XI -10-5.03): The Commercial Zone Development Standards table (Table XI-10-5.03-1) would be amended to add a maximum height of 35 feet or three stories for primary buildings in the General Commercial (C2), Highway Services (HS), and Town Center (TC) zones (except for properties within 100 feet of an R1 or R2 residential zone, where the maximum building height would be 30 feet or two stories) . The maximum primary building height in the Neighborhood Commercial 216
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3 (C1) zone is also proposed to be changed from 35 feet or 2.5 stories to 35 feet or three stories, for consistency with the standards for other commercial zones.

Footnote number 1 to the development standards table would apply to both the C2 and TC zones, and the existing footnote text would be amended to reference the provisions in the Commercial Zone Special Development Standards and Conditional Use Permit section s of the Zoning Code that allow for additional primary building height subject to a CUP. The proposed buffer would be 500 feet rather than 100 feet.

Commercial Zone Special Development Standards (XI-10-5.04): A new Subsection (D) would be added and would include language outlining guidance on criteria the Planning Commission should consider when reviewing a request for additional building height pursuant to a CUP. The proposed criteria focus on site - specific conditions and design elements such as the widt h of the right -of-way of the principal street; the proximity of the subject site to low-or medium-density residential districts R1, R2, and R3; building setbacks as they relate to the proposed building height beyond 35 feet; and upper story building step -backs. These criteria are intended to provide clear and objective direction about the factors that should inform a decision about a CUP application for additional building height.

Conditional Use Permits and Minor Conditional Use Permits (XI -10-57.04): As noted above, Table XI -10-

57.04-1 in the Conditional Use Permits section of the Zoning Code currently includes a provision allowing for consideration of additional building height beyond 35 feet or three stories in the MP and TC zoning districts.

The proposed ordinance would make the provision also applicable in the C2 zone and would amend it to add a maximum building height standard of 75 feet or six stories with a CUP (except that the provision for a discretionary increase in building height with a CUP would not apply to properties within 500 feet of an R1 or R2 residential zone).

A note would also be added to the table referencing the criteria discussed above (in Subsection XI-10-5.04) that apply to requests for a CUP for excess building height and the specific findings for approval for this type of CUP, which appear below in Table XI -10-57.04-2 in this subsection. The findings would be amended to eliminate the existing language related to “exceptional architecture and aesthetic merit,” which is highly subjective, and to add new, more subjective findings related to the proposed building’s compatibility with the surrounding area. The proposed new findings would consider factors such as the design, location, size, and bulk of the proposed building; the transition in scale between the proposed building and structures in adjacent residential districts; shadow impacts of the proposed building on adjacent parcels, public sidewalks, and public open spaces; the building does not create a dominating visual prominence that is incongruent with the scale and character of the neighborhood; and the building must meet all other development standards for the site where it is located.

Definitions (XI-10-2.03): As part of the proposed zoning amendments for non-residential building heights, a minor amendment is included to the definition of the term “Floor Area Ratio” (FAR). The language allowing for increased FAR with approval of a Use Permit would be deleted. The purpose of this proposed change is twofold: first, to eliminate potential conflicts and confusion that may arise if a project applicant were to file a request for additional height and additional FAR (which are related but different); and second, because such a provision for a discretionary increase to the maximum allowed FAR would be more appropriately located as part of development standards elsewhere in the Zoning Code, rather than as part of the definition of the term FAR.

Through the process of preparing these proposed zoning amendments, staff has discussed th e issue of discretionary increases to maximum FAR, and whether and how the City’s Zoning Code should address them. Typically, when a jurisdiction allows for a discretionary increase in allowable FAR, it is used as an incentive, so the City receives somethi ng in return from the project (e.g. affordable housing, public open space, or other public amenities, etc.). Staff determined that for the sake of simplicity, for now the provision for increased FAR should be eliminated from the Zoning Code, and the issue should be revisited in more detail as part of the forthcoming comprehensive zoning update.

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4 Policy Alternative:

Alternative: Do not adopt the ordinance amending regulations for non-residential building heights in Title XI, Chapter 10 of the Municipal Code. There would continue to be no stated maximum height for primary buildings in the C2, HS, and TC zones. When a development application is submitted, any building height could theoretically be proposed, and Planning staff would review and make a determ ination about appropriate building height as part of the Site Development Permit review process.

Pros: Continuation of status quo (no new regulations for the City or developers to follow; maximum flexibility in interpreting development standards for commercial building height).

Cons: Lack of clarity and predictability for Planning staff and developers; lack of clear criteria or findings on which the Planning Commission may base a decision about building height.

Reason not recommended: It is to the City’s advantage to have clear and specific standards and review procedures pertaining to building height in commercial areas. Because the Zoning Code does not currently provide clear guidance as to how to determine what building height would be appropriat e for a specific context, there is a risk that an applicant could propose an excessively tall building that would be significantly out of scale with its surroundings, and that may create negative impacts on adjacent properties related to shadows and solar access, views, and/or general neighborhood character and compatibility. In such a case, Planning staff and the Planning Commission may not have a strong and defensible foundation on which to base a decision requiring the applicant to reduce the building height.

Fiscal Impact:

The proposed zoning ordinance amendments will establish a maximum height for buildings in three of the city’s commercial zones: General Commercial (C2), Highway Services (HS) and Town Center (TC). This change in development regulations will have no fiscal impact on the City.

California Environmental Quality Act:

The proposed text amendments to the Milpitas Municipal Code are exempt from environmental review under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Sections 15183 (Projects Consistent with a General Plan) and Section 15061(b)(3) (Common Sense Exemption).

The proposed ordinance would result in the adoption of new development standards for building height as well as review criteria and findings for approval for discretionary increases in building height. It would provide City staff and the Planning Commission with specific tools to use to ensure that the scale and design of new development is compatible with surrounding areas and does not create adverse effects on other properties.

These regulations would help to promote good development that fits well with its surroundings and relates well to other buildings in the area and public spaces in terms of size and design. Therefore, it can be seen with certainty that there is no possibility that the ordinance in question would have a significant effect on the environment; accordingly, the ordinance is exempt from CEQA review.

Recommendations:
1) Conduct a public hearing and move to close the hearing following comments. 2) City Attorney shall read aloud title of the Ordinance. 3) Move to waive the first reading beyond the title and introduce Ordinance 38.846 amending sections of Chapter 10 of Title XI (Zoning) of the Milpitas Municipal Code relating to Non-Residential Building Heights and determine that the Municipal Code amendment is exempt from California Environmental Quality Act pursuant to CEQA Guidelines Sections 15183 (Projects Consistent with a General Plan) and 15061(b)(3) (Common Sense Exemption.

Attachments:

A) Draft Ordinance No. 38.846
B) Planning Commission Resolution No. 22-006
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Item # 19.

PLEASE NOTE:

This copy of Ordinance No. 38.846 is a “redlined” version for your convenience. Text additions are designated by an underline and text deletions are designated with a strikethrough.

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2 Ordinance No. XX.XXX

REGULAR

NUMBER: 38.846
TITLE: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF MILPITAS AMENDING SECTIONS OF CHAPTER 10 OF TITLE XI OF THE MILPITAS MUNICIPAL CODE TO

MODIFY AND ADD REGULATIONS RELATING TO MAXIMUM HEIGHTS FOR

NON-RESIDENTIAL BUILDINGS IN CERTAIN COMMERCIAL ZONES, AND

MAKING FINDINGS OF CEQA EXEMPTION

HISTORY: This Ordinance was introduced (first reading) by the City Council at its meeting of ____________________, upon motion by_________________________ and was adopted (second reading) by the City Council at its meeting of _______________, upon motion by ____________________________. The Or dinance was duly passed and ordered published in accordance with law by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

ATTEST: APPROVED:

________________________________ __________________________ Wendy Wood, City Clerk Rich Tran, Mayor

APPROVED AS TO FORM:

________________________________
Michael Mutalipassi, City Attorney

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RECITALS AND FINDINGS:

WHEREAS, the City of Milpitas, California (the “City”) is a municipal corporation, duly organized under the constitution and laws of the State of California; and WHEREAS, California Government Code Section 65800 et seq. authorizes the adoption and administration of zoning laws, ordinances, rules and regulations by cities as a means of implementing the General Plan; and
WHEREAS, clear and specific zoning regulations, including development standards and findings for project approval, are important elements in a municipal government’s process of encouraging and approving high-quality development projects that are compatible with surrounding areas; and WHEREAS, the City’s Zoning Ordinance, Chapter 10 of Title XI of the Milpitas Municipal Code, does not currently include standards for the maximum height of primary buildings in the General Commercial (C2), Highway Services (HS), or Town Center (TC) zoning districts; and WHEREAS, the City wishes to enact appropriate regulations applying to the maximum height of primary buildings in the C2, HS, and TC zones, and further to conditionally allow additional building height in the C2 and TC zones, when such buildings are appropriately located and well designed to avoid negative impacts on surrounding properties and public spaces; and WHEREAS, the City has prepared a Zoning Amendment (“Amendment”) to the City’s Municipal Code, including Section 2.03 (“Definitions”), Section 5.03 (“Commercial Zone General Development Standards”), Section 5.04 (“Commercial Zone Special Development Standards”), and Section 57.04 (“Conditional Use Permits and Minor Conditional Use Permits”), of Title XI, Chapter 10–Zoning; and WHEREAS, on June 8, 2022, the Planning Commission for the City of Milpitas held a lawfully noticed public hearing to solicit public comment and consider the proposed Amendment, take public testimony, and make a recommendation to the City Council on the project; and WHEREAS, on June 14, 2022, the City Council of the City of Milpitas held a study session to consider the proposed Amendment and to provide comments and direction to Planning Department staff; and WHEREAS, on August 9, 2022, the City Council of the City of Milpi tas held a lawfully noticed public hearing to solicit public comment, take public testimony, and consider the proposed Amendment; and WHEREAS, on August 16, 2022, the City Council postponed adoption of the proposed Amendment and directed staff to meet with member of the Milpitas Involved Citizens neighborhood group to review the proposed Amendment, answer questions, and resolve any concerns; and WHEREAS, on September 20, 2022, the City Council of the City of Milpitas held a second lawfully noticed public hearing to solicit public comment, take public testimony, and consider a modified version of the proposed Amendment: and
WHEREAS, this ordinance is exempt from the California Environmental Quality Act, Public Resources Code Section 21000, et seq. (“CEQA”), each as a separate and independent basis, pursuant to CEQA Guidelines Section 15183 (projects consistent with the General Plan) and Section 15061(b)(3) (no possibility of significant environmental effect).

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NOW, THEREFORE, the City Council of the City of Milpitas does ordain as follows:

SECTION 1. RECORD AND BASIS FOR ACTION
The City Council has duly considered the full record before it, which may include but is not limited to such things as the City staff report, testimony by staff and the public, and other materials and evidence submitted or provided to the City Council. Furthermore, the recitals set forth above are found to be true and correct and are incorporated herein by reference.

SECTION 2. CALIFORNIA ENVIRONMENTAL QUALITY ACT
Based on its review of the entire record, including the staff report, public comments and t estimony presented to the Planning Commission and City Council, and the facts outlined below, the City Council hereby finds and determines that this ordinance is categorically exempt from the California Environmental Quality Act (“CEQA”) under CEQA Guideli nes, § 15061(b)(3), also known as the “common sense exemption”, which exempts from CEQA any project where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment. A “signific ant effect on the environment” means a substantial, or potentially substantial, adverse change in any of the physical conditions within the area affected by the project.

This ordinance would enact new building height regulations for non-residential development in the General Commercial (C2), Highway Services (HS), and Town Center (TC) zoning districts. Since there are currently no maximum building heights specified in the development standards for these zones, the ordinance would cre ate and apply new standards that are more specific and robust that those that currently govern new development. In addition, new regulations are proposed that would apply in circumstances where a project applicant proposes a greater building height than th e 35 feet or three stories that is allowed by right in the C2 and TC zones. These draft standards would encourage good design and improve project compatibility with surrounding areas, thereby eliminating or mitigating potential negative effects. Therefore, it can be seen with certainty that there is no possibility that this Ordinance would have a significant effect on the environment; accordingly, this Ordinance is exempt from CEQA review.

Moreover, the City Council hereby finds that the introduction and ad option of this Ordinance is categorically exempt from CEQA pursuant to CEQA Guidelines Section 15183 (Projects Consistent with a Community Plan, General Plan, or Zoning). Section 15183 of the CEQA Guidelines provides that projects that are consistent with a Community Plan, General Plan or Zoning for which an EIR has been certified “shall not require additional environmental review, except as might be necessary to examine whether there are project -specific significant effects which are peculia r to the proje ct or its site.” These proposed zoning amendments serve to implement policies and guidelines in the Community Design Element of the Milpitas General Plan because they would add development standards, design criteria, and findings for approval for non-residential buildings to ensure that any proposed building that is taller than the maximum height allowed by right is designed to fit in well with existing neighborhood context and to minimize impacts on surrounding properties. Therefore, the proposed Amendment is consistent with the General Plan. Therefore, the proposed Amendment is consistent with the General Plan and is exempt from CEQA pursuant to Section 15183 of the CEQA Guidelines.

Accordingly, this Ordinance is exempt from CEQA review pursuant to Sectio ns 15061(b)(3) and 15183 of the CEQA Guidelines, each as a separate and independent basis.

SECTION 3. GENERAL PLAN CONSISTENCY
The Community Design Element of the City’s General Plan includes policies and guidelines that require development projects to (1) incorporate context -sensitive design approaches, respecting and responding to the 222
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scale and character of adjacent land uses as well as surrounding neighborhoods; and to (2) reinforce desirable design elements of the surrounding area, such as scale and se tback patterns. This zoning Amendment would set maximum by-right height for primary buildings in three commercial zoning districts, where no maximum height standards are currently stated. The proposed zoning changes provide specific and detailed guidance about how a request for additional conditionally permitted height should be evaluated and what factors should form the basis of a decision on such a request. Moreover, the Amendment include s well-crafted language for findings for approval of conditional requests for additional building height, which would serve to ensure that contextual factors (e.g. neighborhood scale and width of primary street right -of-way) and project -specific design fact ors (such as building setbacks and upper story building step-backs) are considered as part of development projects involving taller buildings in commercial areas. In this way, the proposed Amendment would serve to implement several policies of the General Plan.

SECTION 4. AMENDMENT OF MILPITAS MUNICIPAL CODE TITLE XI, CHAPTER 10, SECTION 2
Title XI, Chapter 10, Section 2 ( Definitions ), Subsection XI -10-2.02 ( General Definitions ) of the Milpitas Municipal Code is hereby amended to read as follows:

XI-10-2.03 Definitions

"Floor Area Ratio (FAR)" is defined for nonresidential Zoning Districts as the maximum permitted ratio of gross floor area to site area and is calculated as follows:

FAR = Total of Gross Floor Area for All Structures on Site Site Area

Increases above the maximum permitted FAR for any district can be allowed with approval of a Use Permit by the Planning Commission. This can be considered when the applicant can demonstrate that the proposed development will (1) generate low peak-hour traffic; (2) will not create a dominating visual prominence. Examples of such uses include wholesaling, distribution and hospitals. In each case where an increase in the maximum permitted FAR has been allowed, all other development standards for the site must be met.

SECTION 5. AMENDMENT OF MILPITAS MUNICIPAL CODE TITLE XI, CHAPTER 10, SECTION 5
Title XI, Chapter 10, Section 5 ( Commercial Zones and Standards ), Subsection XI-10-5.03 ( Commercial Zone General Development Standards ) of the Milpitas Municipal Code is hereby amended to read as follows:

XI-10-5.03 Commercial Zone General Development Standards The following minimum requirements shall be observed, except where increased for conditional uses.

The minimum requirement shall be one of the following for the district classification as designated on the zoning map.

Table XI-10-5.03-1
Commercial Zone Development Standards
Standard CO C1 C2 HS TC
Lot Area,
minimum
None None 10,000 s.f. Fronting
major street
None.
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6 Ordinance No. XX.XXX

(4 or more
lanes): 1.5 ac.

Fronting all
other streets
(two lanes):
20,000 s.f.

Lot Width,
minimum
None None 100 ft. Fronting
major street:
250 ft.

Fronting all
other streets:
125 ft.

None
Front Yard
Setback,
minimum
10 ft. 20 ft. 0 ft. Major street:
50 ft.

All other
streets: 0 ft.
20 ft.
35 ft. along E.

Calaveras
Blvd.

Side Yard
Setback
(Interior),
minimum
10 ft. 0 ft.
15 ft. when
abutting R
District
0 ft.
15 ft. when
abutting R
District
0 ft.
15 ft. when
abutting R
District
0 ft.
15 ft. when
abutting R
District
Street Side
Yard
Setback,
minimum
10 ft. 0 ft. 0 ft. 0 ft. 20 ft.
35 ft. along E.

Calaveras
Blvd.

Rear Yard
Setback,
minimum
10 ft.

When abutting
residential, not
less than R
District
required
setback
0 ft.
15 ft. when
abutting R
District
0 ft.
15 ft. when
abutting R
District
0 ft.
15 ft. when
abutting R
District
0 ft.
15 ft. when
abutting R
District
Building
Height,
maximum

Primary
building
35 ft. or 3
stories
35 ft. or 2.53
stories
None 35 ft. or
3 stories1,2
None35 feet
or 3 stories2
None1 35 feet
or 3 stories1,2
Accessory
building
25 ft. or 2
stories
25 ft. or 2
stories

Parking Refer to
Section 53,
Off Street
Parking, of
this Chapter.

Lot
Coverage
None None None None None
Floor Area
Ratio

0.50 0.35 0.50 0.50 0.85
Landscaping None None None 25% of front
yard setback
All required
setback areas
and the ends
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7 Ordinance No. XX.XXX

of each
parking
aisle23

1 Refer to Subsections XI-10-5.04(D) and XI-10-57.04(C)(1), Applicability, of this Chapter for additional requirements. 2 For properties that are located within 500 feet of the boundary of a Single Family Residential (R1) or One and Two-Family Residential (R2) zone, the maximum height of a primary building shall be limited to 30 feet or 2.5 stories. 23 The Planning Commission shall determine the size of the planters through site and architectural review.

Title XI, Chapter 10, Section 5 ( Commercial Zones and Standards ), Subsection XI-10-5.04 ( Commercial Zone Special Development Standards ) of the Milpitas Municipal Code is hereby amended to read as follows:

XI-10-5.04 Commercial Zone Special Development Standards A. All Zones.

1. Areas for Collecting and Loading Recyclable Materials. There shall be provided areas for collecting materials in accordance with Subsection 54.12, Areas for collecting and loading recyclable materials, of this Chapter.

2. All outdoor storage areas of such things as trash and materials shall be within a completely enclosed building or behind a visually obscure solid wall or tight board fence a minimum six (6) feet in height and shall not be located within any front or street side yard setback area.

3. Such uses, operations or products shall not be objectionable due to odor, dust, smoke, noise, vibration or other similar causes.

B. TC Zone.

1. Setbacks for Residential Projects. Except for the Calaveras Boulevard setback, all other setbacks shall be determined through a Site Development Permit.

C. Neighborhood Commercial (C1) Zone. Thrift stores shall comply with each of the following standards:

1. Signage prohibiting dumping of merchandise during non -business hours shall be installed in conspicuous locations to the satisfaction of the Planning Director indicating penalties and fines for such activity. Signage shall include daytime collection hours for donated goods.

2. A designated area inside the building shall be established for the receipt, sorting and processing of goods. Donated goods shall be accepted only inside the building and during regular business hours; no donated goods shall be left outside. Loading and unloading must take place in a designated area that shall be cleared, cleaned and maintained before closing of business each day.

3. The storefront windows shall be permanently maintained as displays of merchandise in a professional and attractive manner (i.e., unsightly clothing racks and displays shall not be placed adjacent to the windows).

4. Any goods or materials left outside of the store overnight shall be removed immediately upon the thrift store opening the next business day.

5. Outdoor storage or display of donated goods or merchandise shall not be permitted.

6. The subject property shall be maintained free of trash, debris, any all other goods at all times.

7. Thrift stores shall not be located closer than one thousand (1000) feet from another thrift store. 225
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8 Ordinance No. XX.XXX

D. General Commercial (C2) and Town Center (TC) Zones.

1. In deciding whether to grant a request for additional building height through the Conditional Use Permit process pursuant to Section XI-10-57.04(C)(1), the Planning Commission shall consider site conditions, design elements, and other factors including but not limited to (a) width of right- of-way of principal street; (b) proximity of the site to low- or medium-density residential districts (R1, R2, and R3); (c) building setbacks in relation to proposed building height in excess of 35 feet; and (d) upper story step-backs.

SECTION 6. AMENDMENT OF MILPITAS MUNICIPAL CODE TITLE XI, CHAPTER 10, SECTION 57
Title XI, Chapter 10, Section 57 ( Applications ), Subsection XI -57.04 ( Conditional Use Permits and Minor Conditional Use Permits ) of the Milpitas Municipal Code is hereby amended to read as follows:

XI-10-57.04 Conditional Use Permits and Minor Conditional Use Permits A. Purpose and Intent.

1. The purpose and intent of the Conditional Use Permit process is to provide a review of l and uses which would not otherwise be permitted as a matter of right in a zoning district because of their nature, have an impact on the surrounding environment and for the determination of whether or not the proposed use is appropriate for its proposed location.

The Conditional Use Permit process is intended to encourage uses to be located in a manner that is:
a. Consistent with the City's zones;
b. Sensitive to community and neighborhood identity; and c. Minimizes impacts to adjacent uses, including t raffic flow; circulation; safety for vehicular and pedestrian traffic; imposition of noises, odors and health and safety hazards upon nearby residential area; provision of adequate light, air and reasonable access; securing safety from fire and other dange rs; prevent overcrowding of land; facilitating adequate provision for transportation and in general, to promote the public health, safety, peace, morals, comfort and welfare; prevention of neighborhood deterioration and blight; the objectives of zoning and planning in the community and the effect upon the City's general welfare of this proposed use in relation to surrounding uses and the community. Review of a use may require the consideration of site plan issues related to the use, as well.

2. It is the p urpose of the Minor Conditional Use Permit process to provide for the streamlined review of uses that may have an impact on the surrounding environment and require discretionary review, but due to their nature, scale or location, do not require discretionary consideration by the full Planning Commission. Either the Zoning Administrator or Planning staff has the authority to review Minor Conditional Use Permits. The Minor Conditional Use Permit process has as its purpose the same goals for uses described for the Conditional Use Permit process above.

B. Authority.

1. Conditional Use Permits. The Planning Commission has the authority to approve Conditional Use Permits, subject to concurrent review and appeal provisions of Section XI -10-64, Development Review Process, of this Chapter.

2. Minor Conditional Use Permits. M inor Conditional Use Permits may be approved either by the Zoning Administrator or administratively by Planning staff. 226
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9 Ordinance No. XX.XXX

a. Review by the Zoning Administrator. The Zoning Administrator has the authority to approve Minor Conditional Use Permits for those uses listed in the use tables of the Zoning Ordinance.

Such approvals shall be subject to the concurrent review and appeal provisions of Section XI- 10-64, Development Review Process, of this Chapter.
b. Review by Planning staff. Planning staff has the author ity to administratively approve Minor Conditional Use Permits for those uses listed in the use tables of the Zoning Ordinance. Such approvals shall be subject to concurrent review and appeal provisions of Section XI -10-64, Development Review Process, of this Chapter. Planning staff-level issued Minor Conditional Use Permits shall not require a public hearing or notice.

C. Applicability.

1. Conditional Use Permits. Conditional Use Permits are required as indicated by the use tables in Residential, Mixed Us e, Commercial, Industrial, Institutional, Park and Open Space, and other land use districts of this Chapter. Conditional Use Permits are also required for the following requests:

Table XI-10-57.04-1
Use/Modifications As provided for in: Notes
Height
Height. For buildings that exceed three
stories or 35 feet, up to a maximum of
six stories or 75 feet, within the MP,
C2, and TC districts.

Table XI-10-7.03-1, Industrial Zone
Development Standards and Table XI-
10-5.03-1 Commercial Zone
Development Standards
See Table XI-10-

57.04-2 and Section
XI-10-5.04(D)(1)

See footnote 1
Height. For buildings that exceed six
stories or 85 feet within the -OO
overlay district up to a maximum of
eight stories or 115 feet in height.

Section XI-10-12.02, Gateway Office
(-OO) Overlay District

Height. Permit in R2 and R3 districts,
schools, hospitals, sanitariums,
institutions, churches and other similar
uses allowed under the use regulations
of this Chapter, to be erected to a
height not exceeding six stories or 75
feet, provided, that the front and side
yard requirements for such buildings in
the "R3" District are complied with.

Non-conforming
Nonconforming buildings and
structures
Section XI-10-56.02(C), Additions to,
enlargements and moving of
nonconforming buildings and
structures
See footnote 12
Nonconforming uses, change of use Section XI-10-56.03, Nonconforming use of buildings and structures

Parking
Parking location Section XI-10-53.13(A), Location of
Parking

Tandem parking Section XI-10-53.07(D), Tandem
Parking Spaces and Section XI-10-

53.13(B), Parking Space Size

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10 Ordinance No. XX.XXX

Parking Structures Section XI-10-53(H)(4), Parking
Structures

Temporary Uses and Structures
Temporary buildings and structures Section XI-10-13.11(H), Temporary Uses and Structures.

Other
Certain industrial uses within
commercial districts
Table XI-10-5.02-1, Commercial Zone
Uses.

Exceptions to performance standards See the zoning districts use standards in XI-10-05, Residential Zones, XI-10-
06, Mixed Use Zones, and XI-10-07,
Industrial Zones.

Lot width reduction
Wireless telecommunications facilities Section XI-10-13.09, Wireless Telecommunications Facilities, of this
Chapter, for specific standards and
exempted facilities.

1 Properties that are located within 500 feet of the boundary of a Single Family Residential (R1) or One and Two-Family Residential (R2) zone shall not be eligible for a request for a Conditional Use Permit to allow height exceeding the maximum standard for primary buildings as shown in Table XI-10-5.03-1 – Commercial Zone Development Standards. 12 In addition, the cumulative floor area included in all such additions or enlargements since the adoption of Ord. No. 38.760 (September 17, 2002) shall not exceed thirty (30%) percent of the floor area contained in said building or structure. Floor area, for the purposes of this Subsection, shall include all habitable space associated with a residential use and shall mean gross floor area associated with any non-residential use. These criteria are established so as not to prolong the life of the original building or structure.
a. Other Uses. The Planning Commission may, after a public hearing, permit the following uses in districts from which they are prohibited by this Chapter where such uses are deemed essential or desirable to the public convenience or welfare and are in harmony with the various elements or objectives of the General Plan.

However, any of the following uses which are marked with an asterisk shall not be allowed in the designated Hillside Combining District.
i. Helicopter pads for medical evacuation purposes.
ii. Development of natural resources (excluding the drilling for or producing of oil, gas or other hydrocarbon substances) together with the necessary buildings, apparatus, or appurtenances incident thereto.
iii. Library or museum, public.
iv. Park, playground, or recreational or community center. v. Public utility and public service use or structure.
vi. Radio or television transmitter.
vii. Reverse vending machines or mobile recycling units except where the lot is being used for residential purposes.

2. Minor Conditional Use Permits. Minor Conditional Use Permits are required as indicated by the use tables in Residential, Mixed Use, Commercial, Industrial, Institutional, Park and Open Space, and other land use districts of this Chapter.

D. Submittal Requirements. Refer to the most recent submittal requirements required by the Planning Division.

E. Review Procedures.
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11 Ordinance No. XX.XXX

1. Conditional Use Permits.
a. The Planning Commission shall hold a public hearing on said application upon such notice as is required in Section XI-10-64, Development Review Process, of this Chapter. b. After the conclusion of the hearing, the Planning Commission may approve the application, approve it subject to such conditions as the Planning Commission may impose, or disapprove the application.
i. The Planning Commission may impose such conditions as it deems necessary to protect the best interests of the surrounding property, of the neighborhood, and as it deems in conformity with the requirements of the General Plan.

2. Minor Conditional Use Permits.
a. Review by Planning Commission Subcommittee. The Planning Commission Subcommittee shall consider a Minor Conditional Use Permit application when authorized to do so under the use tables of the Zoning Ordinance and hold a public hearin g on application upon such notice as is required in Section XI-10-64, Development Review Process, of this Chapter. i. After the conclusion of the hearing, the Planning Commission Subcommittee may approve the application, approve it subject to such conditions as the Planning Commission Subcommittee may impose, or disapprove the application. a) The Planning Commission Subcommittee may impose such conditions as it deems necessary to protect the best interests of the surrounding property, of the neighborhood, and as it deems in conformity with the requirements of the General Plan.
b) If the Planning Commission Subcommittee members disagree on a decision for a project, then the project will be placed on the agenda for Planning Commission review, with no additional fees required.
b. Review by Planning staff. The Planning Division shall administratively consider a Minor Conditional Use Permit when authorized to do so under the use tables of the Zoning Ordinance. Planning staff shall investigate as necessary to d etermine whether or not the proposed project conforms or may be conditioned to conform fully to the intent of this Chapter. No public hearing or notice shall be required for an administrative level Minor Conditional Use Permit.

If the project does not comply, a notice of correction shall be prepared and returned to the applicant.

If the applicant resubmits for review and the project still does not comply with the required regulations or is not in accordance with the approved conditions of approval, the Planning Division shall deny the application.

F. Required Findings for Conditional Use Permits and Minor Conditional Use Permits.

1. General Findings. Approval may be granted by the appropriate decision -making body, of a Conditional Use Permit or Minor Conditional Use Permit application in accordance with this Chapter if all of the following findings are made, based on the evidence in the public record:
a. The proposed use, at the proposed location will not be detrimental or injurious to property or improvements in the vicinity nor to the public health, safety, and general welfare; b. The proposed use is consistent with the Milpitas General Plan; and c. The proposed use is consistent with the Milpitas Zoning Ordinance.

In the case of a project located within a Specific Plan, the following additional finding shall be made:
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Item # 19.
12 Ordinance No. XX.XXX

d. The proposed use is consistent with the Specific Plan.

2. Specific Findings. In addition to the general findings required in Subsection (F)(1), above, specific findings shall be made prior to the approval of an application for a Conditional Use Permit for the following requests:

Table XI-10-57.04-2
Use/Modification Specific Findings
Height
Height. For buildings that exceed three (3)
stories or thirty-five (35) feet within the MP, C2,
and TC districts.

The project exhibits exceptional architecture and
aesthetic merit to warrant the excess height.

1. The design, location, size, and bulk of the
proposed building is compatible with the
existing and allowed future land uses in the
vicinity.

2. The building’s design provides an appropriate
transition in scale to structures in adjacent
residential districts.

3. The building’s design minimizes shadows on
public sidewalks, public open spaces, and
solar facilities on adjacent parcels through
step-backs at upper levels or other design
elements.

4. The building will not create a dominating
visual prominence that is incongruent with the
scale and character of the neighborhood.

5. The building meets all other development
standards for the site where it is located.

Height. For buildings that exceed six (6) stories
or eight-five (85) feet within the -OO overlay
district up to a maximum of eight (8) stories or
one hundred fifteen (115) feet in height.

The project exhibits exceptional architecture and
aesthetic merit to warrant the excess height.

Other
Certain Industrial Uses within Commercial
Districts
The site is within close proximity to industrial
uses or districts and is suitable for the type and
intensity of use that is proposed.

G. Consideration of Conditional Use Permit or Minor Conditional Use Permit Pending Zoning Amendment. Upon the close of a public hearing before the Planning Commission on the question of a Zoning Amendment to change property from one zone to another, and upon favorable report thereon by the Commission, the Commission may consider such matters and regulations as are set forth in Subsection XI-10-57.04, Conditional Use Permits and Minor Conditional Use Permits, of this Chapter.

The Commission may conditionally impose such requirements and regulations upon the subject property and use as the Commission is authorized to impose by Subsection XI-10-57.04, Conditional Use Permits and Minor Conditional Use Permits, of this Chapter, and may conditionally approve Conditional Use Permits; said requirements and regulations shall be imposed and said approval shall be granted upon the express condition that said property shall be rezoned in accordance with the specific recommendation of the Planning Commission relating to zoning and shall not take effect unless and until said property is rezoned in accordance with specific 230
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13 Ordinance No. XX.XXX

recommendation of the Planning Commission and until the Ordinance amending this Chapter in accordance with the specific recommendation of the Planning Commission shall take effect.

H. Appeals. An appeal of the action on a Conditional Use Permit or Minor Conditional Use Permit shall be reviewed in accordance with Section XI-10-64, Development Review Process, of this Chapter.

I. Modifications Requested by the Applicant. Projects shall be developed in conformity with project approvals. If the applicant wishes to modify the project, as approved, the applicant shall submit revised plans and any other applicable information to the City for review by the Planning Division.

The Planning Division staff shall make one of the following determinations regarding the request:

1. Insignificant Modifications. If the Planning Division determines that the modifications are minor, the modifications may be approved administratively.

2. Significant Modifications With or Without Public Impact or Concern. If the Planning Division determines that the modifications are significant enough to warrant discretionary review and have the potential for public impact or concern, then the modifications shall be referred to the final decision-making authority for the original project in the case of non-staff level issued permits, or to the Planning Commission in the case of staff -level issued Minor Conditional Use Permits. If the original application for a project required a public hearing, then the final decision -making authority's review of modifications shall require a public hearing, in accordance with Section XI- 10-64, Development Review Process, of this Chapter.

J. Modifications, Suspensions and/or Revocations Initiated by the City. Refer to Section XI-10-63.06, Revocation, Suspension, Modification, of this Chapter.

K. Approval Runs with the Land. The approval of a Conditional Use Permit or Minor Conditional Use Permit shall run with the land, and shall continue to be valid upon a change of ownership of the site to which it applies, unless the decision-making authority places limits on the effective time of the approval.

SECTION 7. SEVERABILITY
The provisions of this Ordinance are separable, and the invalidity of any phrase, clause, provision, or part has no effect on the validity of the remainder.

SECTION 8. EFFECTIVE DATE AND POSTING
In accordance with Section 36937 of the Government Code of the State of California, this Ordinance takes effect 30 days from the date of its passage. The City Council hereby directs the City Clerk to cause this Ordinance or a summary thereof to be published in accordance with Section 36933 of the Government Code of the State of California.
231
Item # 19.

RESOLUTION NO. 22-006

A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF MILPITAS

RECOMMENDING THAT THE CITY COUNCIL APPROVE ZONING TEXT
AMENDMENT ZA22-0002 AMENDING SECTIONS OF CHAPTER 10 - ZONING OF

THE MILPITAS MUNICIPAL CODE RELATING TO MAXIMUM HEIGHTS FOR NON-RESIDENTIAL BUILDINGS IN CERTAIN COMMERCIAL ZONES; AND

DETERMINING THE ORDINANCE TO BE EXEMPT FROM ENVIRONMENTAL REVIEW PURSUANT TO CEQA GUIDELINES SECTIONS 15061(B)(3) AND 15183

WHEREAS, the City of Milpitas, California (the “City”) is a municipal corporation, duly organized under the constitution and laws of the State of California; and

WHEREAS, California Government Code Section 65800 et seq. authorizes the adoption and administration of zo ning laws, ordinances, rules, and regulations by cities as a means of implementing the General Plan; and

WHEREAS, clear and specific zoning regulations, including development standards and findings for project approval, are important elements in a municipal government’s process of encouraging and approving high-quality development projects that are compatible with surrounding areas; and

WHEREAS, the City’s Zoning Ordinance, Chapter 10 of Title XI of the Milpitas Municipal Code, does not currently include standards for the maximum height of primary buildings in the C2 General Commercial, HS Highway Services, or TC Town Center Zoning Districts; and

WHEREAS, the City wishes to enact appropriate regulations applying to the maximum height of primary buildings in the C2, HS, and TC zones, and further to conditionally allow additional building height in the C2 and TC zones, when such buildings are appropriately located and well designed to avoid negative impacts on surrounding properties and public spaces; and

WHEREAS, the City has prepared a Zoning Amendment (“Amendment”) to the City’s Municipal Code, including Section 2.03 (“Definitions”), Section 5.03 (“Commercial Zone General Development Standards”), Section 5.04 (“Commercial Zone Special Development Standards”), and Section 57.04 (“Conditional Use Permits and Minor Conditional Use Permits”), of Title XI, Chapter 10–Zoning; and

WHEREAS, the Planning Commission makes and accepts as its own the findings set forth in this resolution; and

WHEREAS, the Planning Commission is an advisory body to the City Council; and

WHEREAS, the Planning Commission hereby finds and determines that the project is exempt from further CEQA review pursuant to CEQA Guidelines section 15061(b)(3) (common sense exemption); and
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Item # 19.

Resolution No. 22-006 Page 2
WHEREAS, as a separate and independent basis, the Planning Commission hereby finds and determines that the project is exempt from further CEQA review pursuant to CEQA Guidelines section 15183 (projects consistent with a Community Plan, General Plan or Zoning); and

WHEREAS, on June 8, 2022, the Planning Commission held a duly noticed public hearing on the subject application, at which all those in attendance were given the opportunity to speak on the Zoning Text Amendment; and

WHEREAS, the Planning Commission has considered all the written and oral testimony presented at the public hearing in making its decision; and

NOW THEREFORE , the Planning Commission of t he City of Milpitas hereby finds, determines, and resolves as follows:

SECTION 1. Recitals

The Planning Commission has duly considered the full record before it, which may include but is not limited to such things as the City staff report, testimony by staff and the public, and other materials and evidence submitted or provided to the Planning Commission . Furthermore, the recitals set forth above are found to be true and correct and are incorporated herein by reference.

SECTION 2. CEQA Finding

The Planning Commission finds, under CEQA Guidelines, Section 15061(b)(3), that this Ordinance is exempt from further environmental review because it is the adoption of an ordinance amending zoning regulations but would not permit any particular project. Therefore, it can be seen with certainty that there is no possibility that the Ordinance in question may have a significant effect on the environment; accordingly, the Ordinance is not subject to review under CEQA. As a separate and independent basis, the Project is also exempt from further environmental review pursuant to CEQA Guidelines Section 15183 (Projects Con sistent with a Community Plan or Zoning).

SECTION 3. Findings for Zoning Amendment (Milpitas Municipal Code, Subsection XI-10-57.02(G)(3))

The Planning Commission makes the following findings based on the evidence in the public record in support of Zoning Text Amendment No. ZA22-0002:

1. The proposed amendment is consistent with the General Plan.

The proposed zoning amendments are consistent with the Milpitas General Plan.

Specifically, they would serve to implement several policies in the Community Design Element that relate to good design, context -sensitive development, and compatibility of new development with surrounding areas. The amendments set maximum by-right height for primary buildi ngs in three commercial zoning districts, where no maximum height standards are currently stated. They provide specific and detailed guidance about how a DocuSign Envelope ID: F0D0646D-FCB5-4BD3-AC5A-D573016297CB 233
Item # 19.

Resolution No. 22-006 Page 3
request for additional conditionally permitted height should be evaluated and what factors should form the basis of a decision on such a request. Moreover, the amendments include well -crafted language for findings for approval of conditional requests for additional building height , which would serve to ensure that contextual factors (e.g. neighborhood scale and width of primary street right-of-way) and project-specific design factors (such as building setbacks and upper story building step-backs) are considered as part of development projects involving taller buildings in commercial areas , as demonstrated in Table 1.

Table 1: General Plan Consistency

Policy Conformance
Community Design Element
Policy CD 1-1(B):

Require development projects
to…incorporate a context-sensitive
design approach that considers the
scale and existing and desired character
of adjacent uses and the surrounding
neighborhood or district.

The proposed zoning amendments would
allow additional building height in some
commercial zones (C2 and TC) subject to
a CUP – up to 35 feet or three stories
more than what is currently permitted by
right. It is very important to ensure that
proposed development projects
involving taller buildings are designed to
respect and fit well with the existing area
context and to maximize compatibility
with surrounding buildings, streets , and
open spaces.

These zoning amendments are drafted to
include specific and detailed guidance
about how a request for additional
building height should be considered.

The criteria and findings for review and
approval focus on context sensitivity
(e.g. transitions to nearby lower -density
residential areas, size, and scale of
proposed buildings in relation to
surrounding streets and buildings) and
design treatments that minimize or avoid
shadows or other negative impacts on
surrounding properties.

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Resolution No. 22-006 Page 4
Policy Conformance
Community Design Element
Policy CD 2-2:

Continue to develop and implement
design standards and guidelines for
residential, non -residential, and
infrastructure development…to provide
design and site planning
approaches….and site planning criteria
that will add de sign excellence, visual
quality and interest to the community.

The proposed amendments would add
design standards for non -residential
development to the Zoning Code,
allowing for additional discretionary
building height (where appropriate).

These draft standards emphasize good
design for taller buildings and would
encourage buildings that are well -
designed in relationship to their
surroundings, which would enhance the
visual quality of the built environment.

Community Design Element
Policy CD 3-3:

Ensure that new development and
redevelopment reinforces desirable
elements of its neighborhood, district, or
center, including architectural style,
scale, and setback patterns.

The proposed amendments, including
development standards, design criteria
for taller buildings, and findings for
approval for discretionary additional
building height, are intended to promote
compatible building scale and encourage
new development that fits well with the
surrounding neighborhood or district.

Community Design Element
Policy CD 5-1:

Design new development to reflect the
character of the predominant existing
character of the same type in the
surrounding area through the regulation
of lot size, street frontage, height,
building scale, siting/setb acks, and
building orientation.

While the proposed amendments would
conditionally allow for greater building
heights than are currently allowed by
right in certain commercial zoning
districts, the underlying goal and purpose
of the draft changes is to address building
height and scale as they relate to and
affect the character of the surrounding
area. By tying approval of a request for
discretionary additional building height
to consideration of site -specific
conditions such as street frontage,
setbacks, a nd the scale and height of
adjacent structures, the proposed
amendments seek to maintain and protect
the character of existing non -residential
areas as well as that of adjacent
residential areas.

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Item # 19.

Resolution No. 22-006 Page 5

2. The proposed amendment will not adversely affect the public health, safety and welfare.

The proposed zoning amendments are intended to promote the public interest by ensuring that proposed taller commercial buildings have minimal or no negative impacts on adjacent neighborhoods and commercial districts in t erms of scale, bulk, shadows, etc.

Requiring proposed new buildings with height exceeding the maximum allowed by right (35 feet or three stories) to respond well to the context of surrounding development, and to incorporate design solutions that help them fit in well with adjacent areas, will not result in adverse effects on public health, safety, or welfare.

SECTION 4: Planning Commission Action

The Planning Commission of the City of Milpitas hereby adopts Resolution No. 22-006 recommending that the City Council adopt Zoning Text Amendment ZA 22-0002 based on the above Findings. The Planning Commission also recommended that the City Council consider adding a provision to the proposed text amendments to limit the height of buildings located within 100 feet of a lower-density residential neighborhood to two stories or 30 feet, which is consistent with the maximum permitted height of buildings in the City’s lower-density residential zoning districts (R1 and R2) . In addition, the Planning Commission recommended that discretionary approval of additional building height in the C2, HS and TC zones (i.e., with approval of a CUP) should not apply within 100 feet of any boundary with a R1 or R2 residential zone.

PASSED AND ADOPTED at a regular meeting of the Planning Commission of the City of Milpitas on June 8, 2022.

Bill Chuan, Planning Commission Chair

DocuSign Envelope ID: F0D0646D-FCB5-4BD3-AC5A-D573016297CB Jun-10-2022
236
Item # 19.

Resolution No. 22-006 Page 6
TO WIT:

I HEREBY CERTIFY that the following resolution was duly adopted at a regular meeting of the Planning Commission of the City of Milpitas on June 8, 2022, and carried by the following roll call vote:

COMMISSIONER AYES NOES ABSENT ABSTAIN
Mercedes Albana
Dipak Awasthi
Bill Chuan
Larry Ciardella
Alexander Galang
Sonia Medina-Ashby
Zeya Moshin

DocuSign Envelope ID: F0D0646D-FCB5-4BD3-AC5A-D573016297CB 237
Item # 19.

CITY OF MILPITAS

AGENDA REPORT
(AR)

Item Title: Draft FY 2021-2022 Community Development Block Grant’s (CDBG) Consolidated Annual Performance and Evaluation Report (CAPER) (Staff Contact: Alex Andrade, Director of Economic Development, 408-586-3046; Robert Musallam, Housing and Neighborhood Services Administrator, 408-586-3275)
Category: Public Hearings-Community Development
Meeting Date: 9/20/2022
Recommendation:

1. Open the public hearing, hear testimony, then move to close the public hearing.

2. Approve the draft FY 2021-2022 Community Development Block Grant (CDBG) Consolidated Annual Performance and Evaluation Report (CAPER).

3. Authorize the City Manager, or designee, to make any necessary changes and to submit the approved draft FY 2021-2022 CAPER to the U.S. Department of Housing and Urban Development (HUD) to comply with CDBG requirements.

BACKGROUND:

Every September, the Consolidated Annual Performance and Evaluation Report (CAPER) is required to be submitted to the U.S. Department of Housing and Urban Development (HUD). The CAPER summarizes the accomplishments of the past funding cycle and the progress towards the priority needs and goals identified in the Consolidated Plan. The 2021-2022 CAPER describes the City’s activities for FY 2021-2022 and the accomplishment toward meeting the priority needs and goals from the 2017-2022 Consolidated Plan (Attachment A). The CAPER further describes actual expenditures and outcomes relative to the targets in the FY 2021-2022 Annual Action Plan. This CAPER is the fifth and last progress report for the 2017-2022 Consolidated Plan that was approved by the City Council in 2017.

ANALYSIS:

In FY 2021-2022, CDBG allocations comprised of the City’s original formula allocation of $682,977, CDBG- CV allocation of $582,236, and prior year unused funds in the amount of $17,027.45. In total, the City allocated $1,282,240.45 to 16 organizations for a total of 21 activities.

The CAPER identifies some of the major accomplishments in 2021-2022:
 Catholic Charities Long Term Care Ombudsman Program made 312 unduplicated visits to Milpitas residents in long-term care.
 Child Advocates of Silicon Valley served and connected 7 Milpitas foster children youth and children to Court Appointed Special Advocates.
 Filipino American Chamber of Commerce provided direct aid to 15 microenterprises in Milpitas.  LifeMoves-Villa Shelter provided shelter and intensive care management services to 21 Milpitas residents.
 LifeMoves-Meal Delivery served “grab and go” meals to 21 homeless Milpitas.  Lighthouse of Hope Counseling Center provided 7 Milpitas residents with counseling and psychological support.
 The Milpitas Senior Center (Technology) assisted 3 Milpitas seniors who need continued support and education in technology to help bridge the digital divide.  Next Door Solutions to Domestic Violence provided 47 residents, who were victims of domestic violence, supportive services and emergency shelter.
 Next Door Solutions to Domestic Violence (Capital-Shelter) provides Milpitas survivors of Domestic abuse with a safe shelter to reside. Repairs to the flooring at the Shelter Next Door were completed and 238 Item # 20.

will allow future Milpitas residents to have safe shelter, food, and support services.  The Health Trust Meals on Wheels Program provided 3,281 hot meals to 19 homebound, low-income seniors. Additionally, they completed 469 wellness checks for Milpitas seniors.  Project Sentinel handled 7 fair housing cases and 24 individuals benefitted from fair housing services.  Pragnya provided support to 132 children, youth, and adults from the Special Needs community.  Rebuilding Together Silicon Valley made housing repairs for 24 Milpitas households.  Senior Adults Legal Assistance provided free legal services to 22 qualified Milpitas seniors.  Silicon Valley Independent Living Center provided housing services for persons with disabilities to 71 individuals.
 Silicon Valley Independent Living Center served 280 Milpitas residents through the Rent Relief Program.
 Sourcewise provided 66 nutritious home‐delivered meals to vulnerable Milpitas seniors who have been impacted by the pandemic.
 Terrace Gardens Senior Housing replaced the existing kitchenette.  Terrace Gardens Senior Housing provided meal delivery services to 148 residents in lieu of community dining, due to the COVID-19 pandemic.
 YWCA Silicon Valley provided supportive services and emergency shelter to 56 victims of domestic violence. Additionally, they responded to 65 crisis calls via the 24-hour crisis line and served 147 persons with crisis counseling identified by the Milpitas Police Department.  YWCA Silicon Valley partnered with MUSD to create a domestic violence prevention curriculum for MUSD students that served 457 students through their Building Healthy Relationships program.

As anticipated, some CDBG subgrantees experienced a residual impact on their ability to meet program objectives in Fiscal Year 2021-2022 due to the COVID-19 pandemic. Reasons include residents being wary of in-person programming and capacity restrictions to facilities. Although in-person workshops saw a decrease in participation, virtual workshop participation numbers grew. In Fiscal Year 2021-2022, the Milpitas Senior Center supported seniors in technological training virtually, rather than in person as done in previous years.

Although the impacts of the COVID-19 pandemic are still being felt in our community, several subgrantees far exceeded the expected outcomes for Fiscal Year 2021-2022. The outcomes presented indicate to our municipality that at-risk populations continue to have an increased need for services. Throughout the program year, our subgrantees demonstrated great flexibility, care, and support through their continued efforts to provide essential services to our most vulnerable Milpitas residents.

POLICY ALTERNATIVE(S):

Not applicable.

FISCAL IMPACT:

There is no fiscal impact to the City budget other than staff time related to this item.

California Environmental Quality Act (CEQA):

The actions being considered have no potential for causing a significant effect on the environment and are exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15061(b)(3).

RECOMMENDATION:

1. Open the public hearing, hear testimony, then move to close the public hearing.

2. Approve the draft FY 2021-2022 Community Development Block Grant (CDBG) Consolidated Annual Performance and Evaluation Report (CAPER).

Attachment:

Attachment A: Draft FY 2021-2022 CAPER
239
Item # 20.

CAPER 1
OMB Control No: 2506-0117 (exp. 06/30/2018)
Attachment A
City of Milpitas
Consolidated Annual Performance and Evaluation Report (CAPER) FY 2021-2022

TABLE OF CONTENTS

CR-05 - Goals and Outcomes ....................................................................................................... 2

CR-10 - Racial and Ethnic composition of families assisted ........................................................ 9

CR-15 - Resources and Investments 91.520(a) ......................................................................... 10

CR-20 - Affordable Housing 91.520(b) ...................................................................................... 14

CR-25 - Homeless and Other Special Needs 91.220(d, e); 91.320(d, e); 91.520(c) .................. 17

CR-30 - Public Housing 91.220(h); 91.320(j) .................................................................................

CR-35 - Other Actions 91.220(j)-(k); 91.320(i)-(j) ..........................................................................

CR-40 - Monitoring 91.220 and 91.230 ..................................................................................... 25

CR-45 - CDBG 91.520(c) ............................................................................................................. 25

240
Item # 20.

CAPER 2
OMB Control No: 2506-0117 (exp. 06/30/2018)
CR-05 - Goals and Outcomes
Progress the jurisdiction has made in carrying out its strategic plan and its action plan.

91.520(a)

Below is a description of the progress the City of Milpitas has made in achieving the goals outlined in the Fiscal Year 2021-2022 Annual Action Plan. The City achieved the majority of its annual goals and is on track to meet most of the five-year goals outlined in the Consolidated Plan (2017-2022). The following goals are the basis for the activities approved and funded in the Fiscal Year 2021-2022 Annual Action Plan:

 Maintain and Preserve Existing Housing
 New Affordable Housing
 Affordable Housing Rental Rehabilitation
 Community Funding/Public Services
 Public services for low- and moderate-income residents at risk of eviction  Fair Housing
 Public Services for Children and Youth
 Public Services for Seniors
 Public services for Domestic Violence Support
 Public Improvements including accessibility and improving public facilities  Assist Microenterprises and Small Businesses
 Explore the use of HUD Section 108 Loan Guarantee Program

Below highlights the funded organizations' accomplishments:
 Catholic Charites’ Long Term Care Ombudsman Program advocates for the rights of seniors and disabled residents in long-term care facilities and made 312 unduplicated visits to Milpitas residents in long-term care.
 Child Advocates of Silicon Valley is the only agency in the County that provides court- appointed volunteers (CASA) to each foster child. Child Advocates of Silicon Valley served and connected 7 Milpitas foster children youth and children to CASAs.  Filipino American Chamber of Commerce provided hands-on training to 15 Milpitas small businesses on how to create and/or revamp their websites and create marketing strategies.
 LifeMoves-Villa Shelter provides shelter and intensive care management services to Milpitas Residents across its facilities in Santa Clara County. Completed repairs and rehabilitation to the Villa Shelter facility allowed LifeMoves to serve 21 Milpitas residents.
 LifeMoves-Meal Delivery served “grab and go” meals to 21 homeless Milpitas residents during the pandemic to reduce the risk of virus transmission.  Lighthouse of Hope Counseling Center provides counseling, psychological support, and education to the Milpitas community. Lighthouse of Hope served 7 Milpitas residents.  The Milpitas Senior Center (Technology) assisted 3 Milpitas seniors who need 241
Item # 20.

CAPER 3
OMB Control No: 2506-0117 (exp. 06/30/2018)
continued support and education in technology to help bridge the digital divide.  Next Door Solutions to Domestic Violence provided 47 residents supportive services and emergency shelter to victims of domestic violence.
 Next Door Solutions to Domestic Violence (Capital-Shelter) provides Milpitas survivors of Domestic abuse with a safe shelter to reside. Repairs to the flooring at the Shelter Next Door were completed and will allow future Milpitas residents to have safe shelter, food, and support services.
 Project Sentinel is contracted to handle fair housing and tenant-landlord cases. Project Sentinel handled 7 fair housing cases for the year, and 24 individuals benefitted from fair housing services.
 Pragnya provided support to 132 children, youth, and adults from the Special Needs community by creating social-emotional connections and preventing further isolation due to COVID-19.
 Rebuilding Together Silicon Valley preserves affordable housing by providing safety, energy efficiency, accessibility repairs, and improvements to qualified low-income homeowners. Rebuilding Together made housing repairs for 24 Milpitas households.  Senior Adults Legal Assistance provided free legal services to 22 qualified Milpitas seniors.
 Silicon Valley Independent Living Center provided housing services for persons with disabilities to 71 individuals.
 Silicon Valley Independent Living Center served 280 Milpitas residents through the Rent Relief Program.
 Sourcewise provided 66 nutritious home‐delivered meals to vulnerable Milpitas seniors who have been impacted by the pandemic.
 Terrace Gardens Senior Housing is an affordable housing rental apartment for seniors. Terrace Gardens met its goal of rehabilitating the existing kitchenette.  Terrace Gardens Senior Housing provided meal delivery services to 148 residents in lieu of community dining, due to the COVID-19 pandemic.
 The Health Trust’s Meals on Wheels Program provided 3,281 hot meals to 19 homebound, low-income seniors. Additionally, they completed 469 wellness checks for Milpitas seniors.
 YWCA Silicon Valley provided supportive services and emergency shelter to 56 victims of domestic violence. Additionally, they responded to 65 crisis calls via the 24-hour crisis line and served 147 persons with crisis counseling identified by the Milpitas Police Department.
 YWCA Silicon Valley partnered with MUSD to create a domestic violence prevention curriculum for MUSD students. 457 students were served through their Building Healthy Relationships program.

242
Item # 20.

CAPER 4
OMB Control No: 2506-0117 (exp. 06/30/2018)
Comparison of the proposed versus actual outcomes for each outcome measure submitted with the consolidated plan and explain, if applicable, why progress was not made toward meeting goals and objectives. 91.520(g)

As anticipated, some CDBG subgrantees experienced a residual impact on their ability to meet program objectives in Program Year 2021 due to the COVID-19 pandemic. Reasons include residents being wary of in-person programming and capacity restrictions to facilities. Both YWCA (MUSD Partnership) and LifeMoves-Meal Delivery reported challenges due to capacity restrictions. Reduced capacity at certain facilities continued post-pandemic to promote social distancing and a safe, hygienic environment. Although in-person workshops saw a decrease in participation, virtual workshop participation numbers grew. In Program Year 2021, the Milpitas Senior Center supported seniors in technological training virtually, rather than in person as done in previous years.

Although the impacts of the COVID-19 pandemic are still being felt in our community, several subgrantees far exceeded the expected outcomes for Program Year 2021. The outcomes presented indicate to our municipality that at-risk populations continue to have an increased need for services. Throughout the program year, our subgrantees demonstrated great flexibility, care, and support through their continued efforts to provide essential services to our most vulnerable Milpitas residents.

Categories, priority levels, funding sources and amounts, outcomes/objectives, goal outcome indicators, units of measure, targets, actual outcomes/outputs, and percentage completed for each of the grantee’s program year goals.

243
Item # 20.

CAPER 5
OMB Control No: 2506-0117 (exp. 06/30/2018)
Goal Category Source /
Amount Indicator Unit of
Measure
Expected
– Strategic
Plan
Actual –
Strategic
Plan
Percent
Complete
Expected
–
Program
Year
Actual –
Program
Year
Percent
Complete
Maintain and
Preserve Existing
Housing
Affordable
Housing
Non-Homeless
Special Needs
$500,000
Owner-
occupied units
rehabilitated or
improved
Household
housing unit 38 156 411% 22 24 109%
New Affordable
Housing
Affordable
Housing $100,000 Rental units
constructed
Units
Constructed 100 100 100% n/a n/a n/a
Affordable Housing
Rental
Rehabilitation
Non-housing
community
development $300,000
Rental units
rehabilitated
Units
rehabilitated 148 1295 875% 148 148 100%
Community
Funding/Public
Services
Homeless
Non-Homeless
Special Needs
$125,000
Number of
persons
assisted
Persons
assisted 1145 2554 223% 235 231 98%
Public services for
low- and
moderate-income
residents at risk of
eviction
Non-homeless
special needs
Homeless
$391,400 Homelessness
Prevention
Persons
assisted 225 521 232% 250 280 112%
Fair Housing
Affordable
Housing
Non-homeless
special needs
$50,000
Number of
persons
assisted
Persons
assisted 16 197 1231% 20 20 100%
Public Services for
Children and Youth
Non-homeless
special needs
Non-housing
community
development
$75,000
Number of
persons
assisted
Persons
assisted 175 2083 1190% 507 464 92%
244
Item # 20.

CAPER 6
OMB Control No: 2506-0117 (exp. 06/30/2018)
Table 1 - Accomplishments – Program Year & Strategic Plan to Date | Sections labeled TBD will be reported on the FY20-21 CAPER

Public Services for
Seniors
Non-homeless
special needs
Non-housing
community
development
$75,000
Number of
persons
assisted
Persons
assisted 120 1985 1654% 350 570 163%
Public services for
Domestic Violence
Support
Non-homeless
special needs $50,000
Number of
persons
assisted
Persons
assisted 50 393 786% 80 103 129%
Public
Improvements
including
accessibility and
improving public
facilities
Non-housing
community
development
$80,000
Number of
persons
assisted with
improved
access to a
facility or
infrastructure
benefit
Persons
assisted 5000 102 2% 28 29 104%
Assist
Microenterprises
and Small
Businesses
Non-housing
community
development
$200,000 Businesses
assisted
New
Businesses
assisted
38 53 139% 10 15 150%
Explore the use of
HUD Section 108
Loan Guarantee
Program
Affordable
Housing
Homeless
Non-housing
community
development
n/a n/a n/a n/a n/a n/a n/a n/a n/a
245
Item # 20.

CAPER 7
OMB Control No: 2506-0117 (exp. 06/30/2018)
Assess how the jurisdiction’s use of funds, particularly CDBG, addresses the priorities and specific objectives identified in the plan, giving special attention to the highest priority activities identified.

In June 2020, the City Council substantially amended the Consolidated Plan to address key priorities City residents needed as a result of the COVID-19 pandemic. The CDBG priorities are as follows:
• Maintain and Preserve Existing Housing
• New Affordable Housing
• Affordable Housing Rental Rehabilitation
• Community Funding/Public Services
• Public services for low- and moderate-income residents at risk of eviction • Fair Housing
• Public Services for Children and Youth
• Public Services for Seniors
• Public services for Domestic Violence Support
• Public Improvements including accessibility and improving public facilities • Assist Microenterprises and Small Businesses
• Explore the use of HUD Section 108 Loan Guarantee Program

The City established three new priorities: (1) Public services for low- and moderate-income residents at risk of eviction, (2) assist microenterprises and small businesses, and (3) explore the use of HUD section 108 loan guarantee program.

The City was able to achieve most of its goals outlined in the 2021 Annual Action Plan (AAP) through the CDBG formula and CDBG-CV3 funding. The City received a total of $1,282,240.45 for Program Year 2021. CDBG formula funds for Program Year 2021 totaled $682,977, CDBG- CV3 funds totaled $582,236, and unused CDBG formula funds for Program Year 2019 totaling $17,027.45. In total, 1,876 persons were assisted in this fiscal year. Out of the 1,876 Milpitas residents served, 570 were seniors, which makes up 30% of the population served; 464 were children and youth, which makes up 25% of the population served; and 103 were survivors of domestic violence, which makes up 5% of the population served.

A high emphasis on providing public services for the Milpitas senior population resonates City- Wide. Six public service allocations totaling $166,500 were approved benefiting seniors who are aging in place with long-term care, hot meals, housing search assistance, and services that help bridge the digital divide and free legal services. Additionally, Terrace Gardens, an 100% affordable senior housing development was allocated $11,000 in CDBG funding for necessary capital improvements to the property. About 14% of total CDBG funds were allocated to serving the Milpitas senior population.

Additionally, the City allocated $62,839.45 for public service activities to benefit victims of domestic violence, $52,500 in public services for children and youth, and $56,290 to Project Sentinel to provide Fair Housing counseling to at-risk tenants in Milpitas.

246
Item # 20.

CAPER 8
OMB Control No: 2506-0117 (exp. 06/30/2018)
Through the combination of the CDBG formula and CDBG-CV3 funds, in total, 280 Milpitas residents were provided rental assistance through our partnership with the Silicon Valley Independent Living Center. A total of $327,696 was allocated to public services for low- and moderate-income Milpitas residents at risk of eviction. The total allocation makes up about 26% of the funds.

One of the many hardships small business owners in Milpitas faced was keeping their doors open for business. A total of $15,000 was allocated to reinvigorate the operations of small businesses in Milpitas. Through our partnership with the Filipino American Chamber of Commerce, 15 small businesses that fall within the LMI income limits received assistance with business mentoring and disaster planning/preparation.

247
Item # 20.

CAPER 9
OMB Control No: 2506-0117 (exp. 06/30/2018)
CR-10 - Racial and Ethnic composition of families assisted Describe the families assisted (including the racial and ethnic status of families assisted).

91.520(a)
CDBG
White 583
Black or African American 146
Asian 518
American Indian or American Native 3
Native Hawaiian or Other Pacific Islander 27
American Indian/Alaskan Native & White 2
Asian & White 1
Black/African American & White 8
A. Indian/Alaskan Native & Black/African A. 44
Other Multi-Racial 544
Total 1,876
Hispanic 242
Not Hispanic 1,634

Table 2 – Table of assistance to racial and ethnic populations by source of funds

Narrative

Table 2 depicts the accurate racial and ethnic categories of total individuals served in Program Year 2021 using the CDBG formula and CDBG-CV3 funds. A total number of 637 Milpitas residents were assisted with CV3 funds. In total, the City’s CDBG program served 1,876 individuals in Program Year 2021. Of those individuals, approximately 31% were White; 8% were Black or African American; 28% were Asian; 5% were either American Indian/American Native, Native Hawaiian/Pacific Islander, American Indian/ Alaskan Native & White, Asian and White, Black/African American and White. 29% of individuals reported as “Other Multi-Racial.” Of the 1,876 individuals served, approximately 13% were Hispanic.

248
Item # 20.

CAPER 10
OMB Control No: 2506-0117 (exp. 06/30/2018)
CR-15 - Resources and Investments 91.520(a)
Identify the resources made available
Source of Funds Source Resources Made
Available
Amount Expended
During Program Year
CDBG CDBG $682,977 $668,819

HOME HOME

HOPWA HOPWA

ESG ESG
Other Other $599,263.45 $563,342.74
Table 3 - Resources Made Available

Narrative
The attached PR26 Program Year 2021 report shows total expenditures of $685,773.98 in CDBG funds. These expenditures include Program Year 2019 unused funds reallocated for COVID-19 activities. In accordance with HUD guidance, the $17,027.45 amount in unused Program Year 2019 funds was reallocated along with the $582,236 amount in CDBG-CV3 funds totaling $599,263.45. The report does not make this distinction. Table 3 depicts the allocation breakdown as approved by HUD.

The attached PR 26 CDBG-CV3 Financial Summary Report shows total program expenditures of $944,317.43. The remaining balance of $35,829.57 will be used during Program Year 2022 through contract amendments of Program Year 2021 activities to continue providing services to Milpitas residents in Program Year 2022.

Some of the subgrantees experienced challenges in programming during Program Year 2021, that lead them to not utilize funds completely. Terrace Gardens-Meal Delivery had a remaining balance of $23,500 due to using funds for Meal Delivery only and not PPE materials as expected. The $23,500 will be used to continue the Food Boxes Program in Program Year 2022.

The Milpitas Senior Center had a remaining balance of $10,000 due to delays in setting up an agreement with a technological training organization. They instead used volunteers to assist seniors with information and communication technology training. The funds are to be used to engage with Anew Vista, a program that specializes in working with seniors in bridging the digital divide, by October 2022.

Identify the geographic distribution and location of investments Target Area Planned Percentage
of Allocation
Actual Percentage of
Allocation
Narrative
Description
City of Milpitas 100% 100%
Table 4 – Identify the geographic distribution and location of investments 249
Item # 20.

CAPER 11
OMB Control No: 2506-0117 (exp. 06/30/2018)

Narrative
The City of Milpitas has not established specific geographic target areas. The City attempts to provide resources to serve low- to moderate-income persons, citywide. 250
Item # 20.

CAPER 12
OMB Control No: 2506-0117 (exp. 06/30/2018)
Leveraging
Explain how federal funds leveraged additional resources (private, state and local funds), including a description of how matching requirements were satisfied, as well as how any publicly owned land or property located within the jurisdiction that were used to address the needs identified in the plan.

The City anticipates CDBG funds to remain constant at about the $600,000 per year level. In conjunction with this federal program, the City will receive additional funding in the form of program income – payments paid into a revolving loan fund.

In Program Year 2021, the City of Milpitas amended the Program Year 2019 Annual Action Plan (AAP) in order to utilize unused funds in the amount of $582,236. In accordance with HUD guidelines, the City allocated these funds to prevent, prepare for, or respond to the Coronavirus pandemic.

In 2020, the City of Milpitas executed a professional services agreement with the Silicon Valley Independent Living Center (SVILC) for the management of the Santa Clara County of Emergency Food and Shelter Program (EFSP) Grant for the Rent Relief Program and Utility Assistance.

Under the Program Year 2021 phase, the City of Milpitas received a grant award of $95,927 for the Rent Relief Program and utility assistance.

Under the American Rescue Plan Act (ARPA) Investment Plan, rent relief eligibility will be expanded to moderate-income residents and the City of Milpitas will now offer mortgage relief.

The program will be funded at $1,100,000, or $550,000 per year for two years through ARPA funds. The existing Rent Relief Program has helped over 300 Milpitas residents through emergency hardship relief, eviction prevention, domestic violence relocation, child and family homelessness relief, and Section 8 good faith deposits.

Since March 2021, the City of Milpitas has contracted with WeHOPE’s Dignity on Wheels program. Dignity on Wheels provides a mobile trailer with shower, laundry, restroom, and on- site case management. The case manager helps connect clients to resources and services such as identification document needs and identification renewal support. At each session, WeHOPE provides supplies that include towels, laundry pods, hair and body wash, hygiene kits, and occasional clothing donations. To date, the City has spent $71,552 of non-CDBG funding on WeHOPE’s Dignity on Wheels program which has serviced over 411 individuals.

The City of Milpitas has also allocated $200,000 to partner with the County of Santa Clara’s Office of Supportive Housing to provide homeless outreach, engagement, and street-based case management services with the goal of connecting unhoused residents of the City of Milpitas to housing and other resources. The County’s Homeless Engagement and Access Team lead the City’s homeless outreach efforts in the community and are regularly on-site at the Dignity on Wheels service location to conduct assessments and further connect clients with a countywide network of services.
251
Item # 20.

CAPER 13
OMB Control No: 2506-0117 (exp. 06/30/2018)
In coordination with the County Continuum of Care (CoC), the City is also exploring the use of Permanent Local Housing Allocation (PHLA) funds. Through the CoC, the City was allocated $609,445 in PHLA funding. The City is currently working with the CoC to determine the eligible activities and where the City could best deploy these funds, but among the eligible activities is assisting persons who are experiencing or at-risk of homelessness.

The City’s Housing Authority currently owns a commercial property located on South Main Street. One of its tenants is the Milpitas Food Pantry. The City currently assists the Food Pantry by collecting $1 per month in rent so the Food Pantry can focus on serving the most vulnerable of community members. In January 2022, the City Council directed staff to sell the parcel of land where the Food Pantry leases a space. City staff has been in communication with the Food Pantry, and other businesses, on this parcel to provide guidance and resources as the businesses look to relocate.

The City of Milpitas offers a Below Market Rate (BMR) program to assist very-low, low-, and moderate-income households in becoming homeowners. Our BMR inventory consists of dwelling units acquired through the City’s Affordable Housing Ordinance. The City’s basic eligibility requirements to participate include being a first-time homebuyer, having the ability to provide at least a 10 percent required down payment, and for a household’s income to not exceed very-low, low-, and moderate-income as defined by the California Department of Housing and Community Development (HCD). In Program Year 2021, a total of 5 BMR dwelling units (4 townhomes and 1 condominium) were sold to qualified first-time home buyers. 252
Item # 20.

CAPER 14
OMB Control No: 2506-0117 (exp. 06/30/2018)
CR-20 - Affordable Housing 91.520(b)
Evaluation of the jurisdiction's progress in providing affordable housing, including the number and types of families served, the number of extremely low-income, low-income, moderate-income, and middle-income persons served.

One-Year Goal Actual
Number of Homeless households to be
provided affordable housing units 0 0
Number of Non-Homeless households to be
provided affordable housing units 420 452
Number of Special-Needs households to be
provided affordable housing units 0 0
Total 420 452
Table 5 – Number of Households

One-Year Goal Actual
Number of households supported through
Rental Assistance 250 280
Number of households supported through
The Production of New Units 0 0
Number of households supported through
Rehab of Existing Units 170 172
Number of households supported through
Acquisition of Existing Units 0 0
Total 420 452
Table 6 – Number of Households Supported

Discuss the difference between goals and outcomes and problems encountered in meeting these goals.

The City of Milpitas continues to show progress in providing affordable housing projects and programs to residents. There are various programs in the City that aims to provide support to LMI clientele. One of the facilities that provide affordable housing is Terrace Gardens.

Terrace Gardens is a deed-restricted, very low and low-income senior housing facility. In Program Year 2021, Terrace Gardens received $11,000 to rehabilitate the kitchenette in the Community Room. The Community Room is an essential place for the staff to hold informative, fun, and teaching opportunities for low-income senior residents. With the completion of the rehab project, a total number of 148 households were supported. 253
Item # 20.

CAPER 15
OMB Control No: 2506-0117 (exp. 06/30/2018)
Another program the City offers to support residents is rent relief assistance through our partnership with the Silicon Valley Independent Living Center (SVILC). SVILC has been administering the City’s Rent Relief Program, which offers low- and moderate-income residents rental assistance to prevent eviction, avoid community displacement, and remain housed. SVILC received a total of $327,696 in funds for Program Year 2021. A total of 280 clients were served, exceeding the annual goal of serving 250 clients.

One of the goals the City has is to provide rehabilitation funding for affordable housing projects.

As part of the City’s Home Rehabilitation program, the City partners with Rebuilding Together Silicon Valley (RTSV), to provide Milpitas residents with emergency repairs for qualified low- income homeowners. The program is designed to preserve affordable housing by providing safety, energy efficiency, accessibility repairs, and improvements to qualified households. In Program Year 2021, RTSV received $173,970 in funding and this provided housing repairs for 24 Milpitas households, which exceeds the annual goal of serving 22 households.

Discuss how these outcomes will impact future annual action plans.

The goal of creating more affordable housing will continue to be a goal in future action plans.

However, the increasingly high cost of construction coupled with surging land costs have made the creation of deeply affordable housing (low, very-low, and extremely-low income) very challenging.

Include the number of extremely low-income, low-income, and moderate-income persons served by each activity where information on income by family size is required to determine the eligibility of the activity.

Number of Households Served CDBG Actual HOME Actual
Extremely Low-income 716 0
Low-income 942 0
Moderate-income 145 0
Total 1,876 0
Table 7 – Number of Households Served

Narrative Information
In Fiscal Year 2021-2022, the City of Milpitas served a total of 1,876 households. In total, 38% were considered extremely low-income; 50% were considered low-income; and 8% were considered moderate-income. The number of non-LMI households served was 73. The majority of non-LMI households were served by Catholic Charities (66 households). Catholic Charities reported an increase in phone call volume once the COVID-19 pandemic hit. Phone calls received by Milpitas residents were counted as households served by the organization.

In October 2019, the City of Milpitas initiated their Rent Relief program which provides various forms of financial relief to residents and families who have emergency housing needs. The program was established to serve low- and moderate-income residents, families with 254
Item # 20.

CAPER 16
OMB Control No: 2506-0117 (exp. 06/30/2018)
dependent children, seniors, disabled individuals, victims of domestic violence, emancipated foster youth, and any resident occupying a subsidized unit. In June 2021, City Council approved the Program Year 2021 Community Development Block Grant (CDBG) funding which allocated a total of $327,696 in rent relief funding. In August 2021, the City of Milpitas City Council expanded the rent relief program to include mortgage assistance. This program will be funded at $1,100,000, or $550,000 per year for two years through ARPA funds. 255
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CAPER 17
OMB Control No: 2506-0117 (exp. 06/30/2018)
CR-25 - Homeless and Other Special Needs 91.220(d, e); 91.320(d, e); 91.520(c) Evaluate the jurisdiction’s progress in meeting its specific objectives for reducing and ending homelessness through:

Reaching out to homeless persons (especially unsheltered persons) and assessing their individual needs.

In October 2019, the City created a Pilot Rent Relief Program and allocated $100,000 from the City’s Affordable Housing Fund to assist the City’s at-risk population to prevent eviction, and displacement, and to provide financial support for other critical housing needs. In March 2020, with the onset of the COVID-19 pandemic, the City allocated an additional $100,000 from the Affordable Housing Fund to assist those who had been affected by the pandemic and whose housing situations were at risk. With these funds, the City assisted in the prevention of 40 households and 140 Milpitas residents from potential eviction.

The City further endorsed the success of the pilot program by permanently establishing the Rent Relief Program and allocated $725,607 in CDBG funding over the last two subsequent program years (2020 and 2021). The success of this program could not be understated as over 100 families and over 300 residents were assisted with CDBG funds.

In December 2020, the City began a pilot program with Project WeHope to administer their Dignity on Wheels Mobile Shower and Laundry program in the City. The City allocated $21,372 in funding to the program and further demonstrated its commitment to providing the unhoused community with services by further allocating $50,180 to extend its existing service contract for an additional year in September 2020. The City is currently exploring another contract extension to continue the program. To date, 411 amount of presumed LMI individuals have benefited from the activity.

The City contracted with the Santa Clara County Office of Supportive Housing to provide assessment services to the unhoused via the Homeless Engagement and Assessment Team (HEAT). The HEAT team, contracted through Abode Services, provides ongoing outreach and assessment services to the unhoused community in Milpitas. An initial allocation of $200,000 was made by the Council in December 2020. An additional $100,000 was recently allocated to extend the service contract for another year. To date, 106 presumed LMI individuals have benefited from the activity.

In coordination with the County Continuum of Care (CoC), the City is also exploring the use of Permanent Local Housing Allocation (PHLA) funds. Through the CoC, the City was allocated $609,445 in PHLA funding. The city is currently working with the CoC to determine the eligible activities and where the City could best deploy these funds, but among the eligible activities is assisting persons who are experiencing or at-risk of homelessness.

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CAPER 18
OMB Control No: 2506-0117 (exp. 06/30/2018)
Addressing the emergency shelter and transitional housing needs of homeless persons The City continues to work closely with the County Continuum of Care and the Santa Clara County Office of Supportive Housing to address the emergency shelter and transitional housing needs of our homeless residents. In the next fiscal year, the City will report that they have formalized an outreach and assessment agreement with the County of Santa Clara to provide on-site case management, assessment, and referral to other services to help house our homeless population.

The City partners with LifeMoves to provide various services to our unhoused community.

LifeMoves operates 26 facilities and service sites consisting of 12 interim shelters, a drop-in center, and several permanent supportive housing sites, as well as programs such as outreach to the unsheltered homeless population, safe parking programs, and homelessness prevention emergency assistance programs. In particular, the LifeMoves Villa Shelter (Villa) provides individuals with shelter beds and other services to all residents of Santa Clara County. The Villa has 15 family units and 9 beds available for single women for an average shelter capacity of 54 individuals per night. The Villa generally serves about 250 individuals each year, about half of whom are children. The purpose of the program is to provide interim housing and supportive service for homeless families and individuals to rapidly return to stable housing and achieve long-term self-sufficiency. A total of 21 Milpitas residents were served in Program Year 2021.

The City of Milpitas also contracts with Abode Services through the County of Santa Clara’s Office of Supportive Housing to provide homeless outreach, engagement, and street-based case management services. The County’s Homeless Engagement and Access Team conduct assessments of unhoused residents and connect clients with a countywide network of services including emergency shelter and transitional housing.

Helping low-income individuals and families avoid becoming homeless, especially extremely low-income individuals and families and those who are: likely to become homeless after being discharged from publicly funded institutions and systems of care (such as health care facilities, mental health facilities, foster care and other youth facilities, and corrections programs and institutions); and, receiving assistance from public or private agencies that address housing, health, social services, employment, education, or youth needs

Milpitas does not currently have an institutional discharge policy. The City collaborates with the Santa Clara County CoC, who recently updated their Quality Assurance Standards to include a homeless discharge coordination policy.

The County CoC endeavors to provide guidance and resources to those released from institutions. The discharge policy includes access to reentry resource centers where, for example, an VI-SPIDAT could be administered. The VI-SPIDAT measures the acuity level of an individual and is used to inform what type of support or housing needs are required. It also serves as the entry point for access to other resources or supportive services, such as residential or outpatient treatment, transitional housing, or emergency shelter access. 257
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CAPER 19
OMB Control No: 2506-0117 (exp. 06/30/2018)
CDBG and City Local Funds
 Rent Relief Program: The Silicon Valley Independent Living Center has been administering the City’s Rent Relief Program, which offers low- and moderate-income residents no more than 3 months of rental assistance to prevent eviction, avoid community displacement, and to remain housed.
 Child Advocates of Silicon Valley: Child Advocates connect court appointed special advocates (CASAs) to foster children. These volunteers must make a commitment to the children for a long-term, many for his or her entire life. The consistent support of the CASA is often the only adult who has steadily remained with the child, providing crucial mentorship.
 Seniors Adults Legal Assistance (SALA): SALA is committed to providing free-legal services to seniors. Legal services that SALA provides ranges from: public benefits, long- term care, alternatives to institutionalization, elder abuse, long-term care insurance, incapacity planning, probate, simple wills and housing – related to Landlord-Tenant issues. Often, many seniors do not know his or her housing rights or sign over the will of their house without knowing, and with fixed income, many are unable to provide legal help. SALA provides legal help free of charge for these low to extremely low-income seniors.

Helping homeless persons (especially chronically homeless individuals and families, families with children, veterans and their families, and unaccompanied youth) make the transition to permanent housing and independent living, including shortening the period of time that individuals and families experience homelessness, facilitating access for homeless individuals and families to affordable housing units, and preventing individuals and families who were recently homeless from becoming homeless again

As noted above, the City contracted with the Santa Clara County Office of Supportive Housing to provide assessment services to the unhoused via the Homeless Engagement and Assessment Team (HEAT). The HEAT team, contracted through Abode Services, provides ongoing outreach and assessment services to the unhoused community in Milpitas. In Program Year 2021, a total of 106 outreach contacts were provided to unhoused individuals. The total number of unhoused enrolled into the SCC HEAT program is 98 and the number of VI-SPDAT assessments administered is 106.

The City of Milpitas also partners with WeHOPE’s Dignity on Wheels program to provide free hot showers, laundry and case management services for the unhoused Milpitas community. In Program Year 2021, a total number of 50 sessions were conducted in which 411 individuals participated. A total of 829 showers and 346 loads of laundry were provided by the program.

In Program Year 2021, LifeMoves received $100,000 to rehabilitate the Villa Shelter facility.

CAPER 20
OMB Control No: 2506-0117 (exp. 06/30/2018)
Shelter facility allowed LifeMoves to serve 21 Milpitas residents. 259
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CAPER 21
OMB Control No: 2506-0117 (exp. 06/30/2018)
CR-30 - Public Housing 91.220(h); 91.320(j)
Actions taken to address the needs of public housing
This is not applicable, there are no public housing developments in the City of Milpitas.

Actions taken to encourage public housing residents to become more involved in management and participate in homeownership
Not applicable.

Actions taken to provide assistance to troubled PHAs
Not applicable.
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CAPER 22
OMB Control No: 2506-0117 (exp. 06/30/2018)
CR-35 - Other Actions 91.220(j)-(k); 91.320(i)-(j)
Actions taken to remove or ameliorate the negative effects of public policies that serve as barriers to affordable housing such as land use controls, tax policies affecting land, zoning ordinances, building codes, fees and charges, growth limitations, and policies affecting the return on residential investment. 91.220 (j); 91.320 (i) Resolution No. 8523
The City adopted Resolution No. 8523 on February 2, 2016, which recognizes homelessness as a crucial problem in the County and will help contribute to future affordable housing projects that will house homeless.

Affordable Housing Ordinance 297
In June 2018, the City Council passed Affordable Housing Ordinance 297 which requires all new residential development projects of 10 units or more designed and intended for permanent occupancy shall construct 15% of the total number of dwelling units within the development as affordable units.

Housing Opportunity Zone
The project will establish a new ‘overlay district’ within established critical priority areas of Milpitas and complete the associated California Environmental Quality Act (CEQA) analysis to accelerate housing production in the City. The Housing Opportunity Zone (HOZ) will provide objective standards and incentives to developers to encourage and support the development of by-right, affordable, and supportive housing projects, including housing for special-needs residents.

The project would streamline housing approvals and accelerate housing production by providing clarity and certainty to developers to stimulate development in priority areas.

Incentives to developers may include reduced parking requirements, additional density bonuses beyond the State Density Bonus, increased allowable heights, streamlined permitting processes, and fee waivers.

Actions taken to address obstacles to meeting underserved needs. 91.220(k); 91.320(j) As noted above, the City contracted with the Santa Clara County Office of Supportive Housing to provide assessment services to the unhoused via the Homeless Engagement and Assessment Team (HEAT). The HEAT team, contracted through Abode Services, provides ongoing outreach and assessment services to the unhoused community in Milpitas.

Actions taken to reduce lead-based paint hazards. 91.220(k); 91.320(j) Historically, the County of Santa Clara has received funding from State’s Department of Health Service and Federal Government for Center for Disease Control to implement a Childhood Lead 261
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CAPER 23
OMB Control No: 2506-0117 (exp. 06/30/2018)
Poisoning Prevention Program. The funded programs include: community outreach screen, case management, and public education to inform low-to-moderate income and older communities.

The project will then follow up with environmental testing, lead-based education, blood-lead testing for children, hazard reduction grants, and follow-up with monitoring and testing.

Milpitas has adopted a Lead-Based Paint Management Plan which complies with HUD-Based Paint regulations and outlines the required states of abatement and remediation for rehabilitation projects. In addition, the City publicizes and identifies lead-based hazards and older residential projects through its Code Enforcement Division and Building Department. In addition, projects undergoing rehabilitation, especially under the City’s Rehabilitation Loan Program, are supported through abatement and technical assistance on how to proceed with mitigating lead-based paint hazards.

Actions taken to reduce the number of poverty-level families. 91.220(k); 91.320(j) The City of Milpitas prioritized the needs of microenterprises during the pandemic. Under the American Rescue Plan Act (ARPA), various small Milpitas businesses received financial assistance due to the economic hardship brought on by the COVID-19 pandemic. The total available funds to be awarded for the Small Business Assistance Grant Program was $1,570,000.

A total of 343 eligible small business applications were received by the City. On April 8th, 276 grants of $5,000 ($1,380,000) and 67 grants of $1,700 ($113,900) were awarded to various microenterprises in Milpitas. This means all the business applicants deemed eligible received funds including 46 daycare centers.

Actions taken to develop institutional structure. 91.220(k); 91.320(j) The City is striving to improve intergovernmental and private sector cooperation to synergize efforts resources and develop new revenues for community service needs and the production of affordable housing. Continued collaborative efforts include:

Regular quarterly meetings between entitlement jurisdictions at the CDBG Coordinators meeting.

Meet with Regional Housing Working Group
Joint jurisdiction Request for Proposals and project review committees Coordination on project management for projects funded by multiple jurisdictions Community Development Roundtable monthly meetings with the real estate and development communities
Actions taken to enhance coordination between public and private housing and social service agencies. 91.220(k); 91.320(j)
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CAPER 24
OMB Control No: 2506-0117 (exp. 06/30/2018)
The City benefits from a strong jurisdiction and region-wide network of housing and community development partners, such as the County and the CoC. To improve intergovernmental and private sector cooperation, the City will continue to participate with other local jurisdictions and developers in sharing information and resources.

Identify actions taken to overcome the effects of any impediments identified in the jurisdictions analysis of impediments to fair housing choice. 91.520(a) The City continues to provide funding for Project Sentinel, who the City contracts for fair housing issues. Project Sentinel is a private, non-profit agency providing fair housing, tenant- landlord counseling, and dispute resolution services. Additional services include counseling, case intake, education, and outreach. Other services include HUD-certified mortgage default counseling and First-Time Homebuyer workshops are open to Milpitas residents. 263
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CAPER 25
OMB Control No: 2506-0117 (exp. 06/30/2018)
CR-40 - Monitoring 91.220 and 91.230
Describe the standards and procedures used to monitor activities carried out in furtherance of the plan and used to ensure long-term compliance with the requirements of the programs involved, including minority business outreach and the comprehensive planning requirements
At this time, the City of Milpitas does not have a documented monitoring process or procedure.

The City’s goal is to develop a monitoring plan with details on standards and procedures during the program fiscal year 2022–2023-time frame.

The City of Milpitas Housing Division maintains a high level of integrity with regard to monitoring our subgrantees. The City ensures all funded organizations comply and meet financing and programmatic requirements of HUD through our contract process. The detail and level of service that is to be performed by the subrecipients are outlined in the agreements. The terms and conditions in the agreement follow HUD regulations and are approved by our City Attorney.

As outlined in the agreements, each organization is required to submit quarterly reports of its progress in meeting the goals listed in the contract. In addition, the organization must submit invoices for reimbursements that document what services have been rendered. City staff takes the quarterly reports and reimbursement supporting documents and reviews items for any discrepancies. If any concerns or questions arise while reviewing the documents submitted by the organization, City staff will contact the organization and begin an internal investigation. The internal investigation will continue until the discrepancy is cleared.

Citizen Participation Plan 91.105(d); 91.115(d)
Describe the efforts to provide citizens with reasonable notice and an opportunity to comment on performance reports.

As described in the City’s approved Citizen Participation Plan, the CAPER was made available in the Public Library, City’s Website, City Hall, and per request via email to the public for public comment for 15 days. A public notice was published in the Milpitas Post and City website on September 2, 2022. Public notices were translated into Spanish, Vietnamese, and Simple Mandarin to further enhance communication with residents whose primary language is not English. Due to the ongoing COVID-19 pandemic, the public is encouraged to comment via email to staff.

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CAPER 26
OMB Control No: 2506-0117 (exp. 06/30/2018)
CR-45 - CDBG 91.520(c)
Specify the nature of, and reasons for, any changes in the jurisdiction’s program objectives and indications of how the jurisdiction would change its programs as a result of its experiences.

There are no changes in the objectives of the program.

Does this Jurisdiction have any open Brownfields Economic Development Initiative (BEDI) grants?
No
[BEDI grantees] Describe accomplishments and program outcomes during the last year.

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CITY OF MILPITAS

AGENDA REPORT
(AR)

Item Title: 6th Cycle Draft Housing Element (2023-2031) (Ashwini Kantak, Assistant City Manager, 408-586-3053 and Alex Andrade, Economic Development Director, 408- 586-3046)
Category: Community Development
Meeting Date: 9/20/2022
Recommendation:
1) Receive a presentation on the Draft Housing Element; 2) Receive public comments; and
3) Provide comments to be reflected in a revised Draft Housing Element to be submitted to the California Department of Housing and Community Development (HCD) for its review.

BACKGROUND:

City staff and the consultant team, Raimi & Associates, have completed the Draft Housing Element and it was posted for public review on August 30, 2022. The Draft Housing Element represents the sixth update of this document and covers the eight-year planning period from 2023 to 2031. It is one of eight State- mandated General Plan elements and is the only General Plan element subject to review and certification by a State agency – the California Department of Housing and Community Development (HCD). The purpose of the Draft Housing Element is to analyze the community’s housing needs for current and future residents across various income categories; create, update, and guide housing policy in the City; and identify locations to accommodate the City’s Regional Housing Needs Allocation (RHNA) goals.

The Housing Element update process began in December 2021 and has involved considerable community input during the preparation of the document. HCD requires the Draft Housing Element to be available for a 30-day public comment period, which will end on September 30, 2022. The document will be revised as needed to respond to public comments before it is submitted to HCD for review in early October. Additional opportunities for public input will be available before the Draft Housing Element is considered by the City Council for adoption, which is expected to occur in January 2023.

At this time, the Draft Housing Element is presented for City Council discussion only and no action will be considered until after the City receives comments back from HCD and staff and the consultant team have had an opportunity to further revise the document to respond to HCD’s comments.

On June 7, 2022, the City Council held a Study Session to receive an update of the Housing Element process. Staff and the consultant team presented the outcome of the initial phase of community engagement and findings from the background analyses to the City Council. The presentation included an overview of the housing needs assessment, constraints analysis, sites inventory methodology, fair housing assessment, and an environmental justice analysis. The City Council provided input on issues to address in the Draft Housing Element which has helped shape the organization of the document and the goals, polices, and programs.

ANALYSIS:

City staff and the consultant team will provide a presentation that covers: 1) comprehensive community engagement activities including the most recent City Council Housing Subcommittee and Planning 266 Item # 21.

Commission meetings; 2) the proposed Draft Housing Element’s goals, policies, and programs; and 3) an overview of the required Affirmatively Furthering Fair Housing (AFFH) assessment.

City Council Housing Subcommittee:

Staff and the consultant team received initial comments on the Draft Housing Element goals, policies, and program and the RHNA sites inventory at a City Council Housing Subcommittee meeting on August 22, 2022. The Subcommittee, led by Councilmembers Phan and Chua, expressed concerns about supportive housing placement and emphasized the importance of coordinating with the City’s Police and Fire Departments and the community. Additional emphasis was placed on the importance of strengthening the City’s relationships with county and federal agencies to acquire funding for low-income housing developments. The Subcommittee noted the Council’s support for legal aid and financial assistance and cautioned staff on the challenges that come with policy changes that could impact the rental housing market. Staff was requested to set specific goals and requirements for rezoning that could accommodate further state funding opportunities as well as emphasizing the importance of rezoning and balancing the residential, commercial, and industrial needs of Milpitas.

The Subcommittee conveyed interest in continuing to explore additional options for middle income housing, increasing ADU development, Prohousing Designation Program through Housing and Community Development (HCD), establishing parking maximums to promote transit-oriented housing, and promoting housing types that reduce costs (e.g., cost sharing opportunities through the reduction of transportation related infrastructure costs). Further, staff was requested to research items including low-interest loan opportunities, surplus land program, land donation options, Enhanced Infrastructure Financing Districts (EIFD), adaptive re-use, the potential to create the City’s own Housing Trust, and prefabricated homes.

The Draft Housing Element programs and actions have been revised as needed to address the Subcommittee’s comments. Attachment A itemizes these comments and the associated revisions.

Planning Commission:

On August 31, 2022, the Planning Commission was also presented a briefing on the Draft Housing Element. The meeting provided a timely opportunity to present the Commission with an overview of the community engagement process and the input received to date, the scope of the goals, policies, and programs, and the current RHNA Sites Inventory. Staff responded to questions on how the Housing Element will be implemented and how it will guide future decisions and actions to address the City’s existing and future housing needs. A representative from Housing Choices, a non-profit organization that advocates and provides supportive services for persons with developmental disabilities, spoke at the meeting to highlight the special housing needs of this population group. A letter was also submitted to staff with recommendations to address these needs. Staff has reached out to the speaker to discuss how the recommendations from Housing Choices can be reflected in the next version of the Draft Housing Element that will be submitted to HCD for review.

Community Engagement:

Community engagement for the Housing Element was conducted in three phases: Phase 1 helped to identify key housing needs, challenges, and opportunities; Phase 2 focused on generating housing ideas; and Phase 3 corresponds with the release of the Housing Element.

Phase 1 community engagement activities included:
 Stakeholder and focus group meetings on housing needs and challenges – February-March 2022  Community Workshop #1 – March 14, 2022
 Community Development Roundtable meeting – March 17, 2022  “Pop-up” event at the City’s Earth Day event – April 23, 2022  Community Survey #1 – March 9 – April 14, 2022 (62 respondents)

Phase 2 of community engagement was conducted following the City Council Study Session on June 7, 2022, and consisted of the following activities: 267
Item # 21.

 Community Development Roundtable meeting – June 16, 2022  Community Workshop #2 – June 28, 2022
 “Pop-up” events:
o Great Mall – June 25, 2022
o Milpitas Main Library – July 30, 2022
 Stakeholder interviews on environmental justice and fair housing issues  Community Survey #2 – June 24-July 31, 2022 (194 respondents)

Phase 3 of community engagement is occurring during the current 30-day public review period. The following community engagement tools and events are available now or scheduled to receive public comments:

 Online Community Survey #3 – August 31 to September 30, 2022 (link)  Online Tool for Commenting on Draft Housing Element (link)  Community Workshop #3 – September 13, 2022
 Community Development Roundtable – September 16, 2022  Great Mall Farmers’ Market Pop-Up Event – September 18, 2022  City Council Meeting –- September 20, 2022
 Santa Clara Collaborative Equity Advisory Group – September 29, 2022

The City also accommodated community engagement challenges presented by the ongoing COVID-19 pandemic. The City used digital communication channels, in-person events, and interpretation and translation support to ensure the greatest level of participation from all segments of the community. The City offered interpretation in Spanish, Vietnamese, and Mandarin during virtual workshops. And, also provided bilingual flyers and surveys during Phase 1, sharing the survey door-to-door with 171 individual units at Sunnyhills apartments.

Draft Housing Element Goals, Policies, and Programs:

The Draft Housing Element is organized around ten (10) broad housing goals that are supported by 72 specific policies. These goals and policies and further articulated through 24 actionable programs. The combined goals, policies, and programs will shape the housing work program and priorities for the City during the next eight years. The end product reflects community input received to date, findings from the background reports, and items to comply with state housing element law. Below are goals from the Draft Housing Element:

 GOAL HE-1: ADEQUATE SITES AND HOUSING PRODUCTION
Maintain adequate sites to accommodate the City’s share of the regional housing needs, including sites that are appropriate for the development of housing affordable to extremely low, very low-, low- moderate-, and above moderate-income households through appropriate land use and zoning.

 GOAL HE-2: EXISTING HOUSING RESOURCES
Maintain high-quality residential and mixed-use neighborhoods and preserve existing housing resources, including units affordable to extremely low-, very low-, low-, and moderate-income households and market rate units.

 GOAL HE-3: BARRIERS TO NEW HOUSING PRODUCTION
Continually assess the barriers to new housing production and proactively mitigate the governmental constraints to new housing development.

 GOAL HE-4: HOUSING DIVERSITY AND AFFORDABILITY
Support the development of a diverse range of housing types, including rental and ownership units, housing affordable to all economic segments of the community, and housing for individuals with special housing needs.
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 GOAL HE-5: FAIR HOUSING
Ensure equal housing opportunity for all households and equal access to housing resources.

 GOAL HE-6: CONSERVATION AND SUSTAINABLITY
Ensure a sustainable future for the City by promoting energy efficiency, reduction of greenhouse gases, and conservation in existing homes and new residential development projects through location-efficient development, green building, and utility efficiency and conservation programs.

 GOAL HE-7: SPECIAL NEEDS POPULATIONS
Support programs aimed at housing for special needs populations.

 GOAL HE-8: UNHOUSED POPULATION
Collaborate with regional agencies and organizations to support the unhoused population in Milpitas through the provision of services and supportive housing.

 GOAL HE-9: MOBILITY
Prioritize expanding affordable mobility options for lower income households and people with special needs.

 GOAL HE-10: IMPLEMENTATION CAPACITY
Allocate adequate City resources to implement programs in the Housing Element.

Fair Housing Assessment

For the 6th Housing Element Cycle, jurisdictions are required under State law (AB 686, adopted 2017) to incorporate a Fair Housing Assessment (FHA) into their Housing Element. The City’s FHA is Appendix F-2 of the Draft Housing Element. The purpose of the FHA is to provide a basis, grounded in data and community engagement, to define programs and actions that address four core fair housing issues: 1) segregation; 2) racially and ethnically concentrated areas of poverty (R/ECAPs); 3) disproportionate housing needs (including those associated with displacement); and 4) disparities in access to housing opportunities.

Affirmatively Furthering Fair Housing (AFFH) seeks to combat housing discrimination, eliminate racial bias, undo historic patterns of segregation, and lift barriers that restrict access to foster inclusive communities and achieve racial equity, fair housing choices, and opportunities for all residents. For the purposes of analyzing the City’s RHNA strategy through an AFFH lens, the Housing Element sites inventory is assessed at the tract level by neighborhood groupings. In general, the highest concentration of Housing Element sites are located in the southwestern portion of the city. These areas include a mix of high and moderate resource census tracts and do not have higher concentrations of population based on race/ethnicity and income than the city as a whole. Elsewhere in the City, parcels included in the sites inventory are more scattered, such as in Sunnyhills and North Abbott Ave. There do not appear to be significant differences in the location of parcels included in the Housing Element sites inventory based on whether they are Pipeline sites, Rezone sites, or Opportunity sites. The next section of this report provides more information on the Sites Inventory.

HCD also requires the RHNA Sites Inventory to consider strategies under AFFH. This includes ensuring that future housing units, especially for lower income households, are not disproportionately concentrated in areas with larger populations of racial/ethnic minority groups, persons with disabilities, and other members of groups protected from discrimination by the federal Fair Housing Act and the California Fair Employment and Housing Act. The City’s AFFH analysis, Appendix F of the Draft Housing Element, identifies potential barriers that could restrict access to opportunity and, conversely, identifies specific meaningful programs and actions to affirmatively further fair housing. Appendix F provides a summary of fair housing issues, an analysis of segregation patterns and disparities in access to opportunities, and an assessment of contributing factors.

AFFH goals, policies, and implementation programs are integrated into the Draft Housing Element. Goals and supporting policies that particularly address AFFH are:

 Goal HE-4: Housing Diversity and Affordability; 269
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 Goal HE-5: Fair Housing;
 Goal HE-7: Special Needs Population; and
 Goal HE-9: Mobility.

Implementation programs that address fair housing and anti-displacement include:

 Program 7: Tenant Assistance and Fair Housing Services;  Program 8: Fair Housing Enforcement, Outreach, and Education;  Program 9: Anti-Displacement;
 Program 10: Place-based Strategies for Neighborhood Improvements;  Program 11: Preservation of At-Risk Housing;
 Program 14: Rent Review Ordinance; and
 Program 22: Supportive Housing for Persons with Disabilities.

RHNA Sites Inventory:

A key component of Goal HE-1, Adequate Sites and Housing Production, is identifying sites for planned or potential housing production to meet the RHNA goals. The City must demonstrate an adequate number of sites with appropriate existing zoning or foreseeable rezoning to accommodate at least 6,713 housing units, plus additional sites and units to provide a “buffer” for lower income units. The RHNA is further differentiated by household income levels (Very Low, Low, Moderate, and Above Moderate). Figure 1 below compares the RHNA for the 6th cycle with the previous 4th and 5th cycles. The 6th cycle RHNA has increased over two-fold from the current 5th cycle.

Figure 1: City of Milpitas RHNA Numbers (4th, 5th, 6th Cycles)

The City’s sites inventory includes three categories of housing units: 1) Credits towards RHNA (which includes future Accessory Dwelling Units (ADUs) and Pipeline Projects), 2) Opportunity Sites; and 3) Rezone Sites.

Future ADUs and Pipeline Projects count as “credits” towards RHNA. Pipeline Projects include projects that have been approved, applications submitted, or those that are under construction.

 ADUs: Between 2019-2021, Milpitas permitted 31 ADUs per year on average (23, 29, and 42 respectively). Per HCD guidance, the City can count a total of 248 over the eight-year cycle (31 units * 689
421
441
936
2,487
1,004
570
565
1,151
3,290
1,685
970
1,131
2,927
6,713
V e r y L o w L o w M o d e r a t e A b o v e M o d e r a t e T o t a l 2007-14 2015-22 2023-31
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8 years) and spread across the income categories outlined above. During this period, the City has seen an uptick in both ADU applications submitted and permitted.  Pipeline Projects: The City’s current list of pipeline projects count towards 2,193 units with 123 in the very low-income category, 200 in the low-income category, 95 in the moderate-income category, and 1,775 in the above-moderate income category.

With the anticipated ADUs and Pipeline Projects, the City can accommodate 2,441 units. The City must accommodate the remaining RHNA of 4,272 units with Opportunity Sites or Rezone Sites. Opportunity Sites include vacant or underutilized sites, currently zoned for residential or mixed-use, and likely to redevelop during this eight-year planning period. Rezone Sites are potential candidates for redevelopment but would require to be rezoned to allow residential use (‘NCMU’ General Plan designation or ‘C2’ Commercial zone).

 Opportunity Sites: The City can accommodate 5,785 units with 1,091 very low-income units, 1,091 low- income units, 1,576 moderate-income units, and 2,027 above-moderate income units.  Rezone Sites: The City can accommodate 1,274 units with 225 very low-income units, 225 low-income units, 319 moderate-income units, and 478 above-moderate income units.

Combined, the City estimates up to 7,032 units in these two categories, creating a total buffer of 2,760 units (65%) and lower-income buffer of 449 units (21%) over the remaining RHNA. Figure 2 provides a summary table of the Sites Inventory.

Figure 2: Sites Inventory Summary Table

Very Low
<50% AMI
Low
50-80% AMI
Moderate
80-120% AMI
Above Mod
>120% AMI Total
RHNA 1,685 970 1,131 2,927 6,713
Credits 197 274 169 1,800 2,441
Potential ADUs 74 74 74 25 248
Pipeline Projects 123 200 95 1,775 2,193
Remaining RHNA 1,488 696 962 1,127 4,272
Opportunity Sites 1,091 1,091 1,576 2,027 5,785
Rezone Sites 225 225 319 478 1,247
Total Capacity
(Opportunity + Rezone) 1,316 1,316 1,895 2,505 7,032 Surplus (%) 449 (21%) 993
(97%)
1,378
(122%)
2,760
(65%)

Figure 3 is a Site Inventory Map showing the sizes and locations of sites identified as a proposed housing site, including Pipeline Projects (red), Opportunity Sites (orange), and Rezone Sites (yellow). Specific locations for potential ADUs are not shown on the map but are generally considered to be distributed citywide.

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Figure 3: Sites Inventory Map

Next Steps

Following the conclusion of the 30-day public comment period on September 30, 2022, staff and the consultant team will review all comments and update the draft Housing Element as needed. Depending on the number of revisions required, the goal is to submit the updated document to HCD for its review by early October 2022.

HCD requires jurisdictions to allow up to 90 days to review Draft Housing Elements. Following receipt of HCD’s comments, the document will be further revised to respond to HCD comments. It is expected that the “final” Draft Housing Element will be presented in January 2023 to the Planning Commission for a recommendation and to the City Council for possible approval before resubmittal to HCD for certification.

FISCAL IMPACT:

The Draft Housing Element review by the City Council does not have a fiscal impact. City staff will concentrate on completing the Draft Housing Element within existing resources and executed contract with the consultant.

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CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA):

This report represents ongoing work on the Milpitas General Plan Housing Element 6th Cycle Update. The presentation and discussion are not a project under the California Environmental Quality Act (CEQA). The Draft Housing Element will be evaluated for consistency with the Final Environmental Impact Report (FEIR) completed for the Milpitas General Plan Update (SCH#: 2020070348). This CEQA evaluation will be completed prior to City Council adoption of the Housing Element.

RECOMMENDATION:

1) Receive a presentation on the Draft Housing Element; 2) Receive public comments; and
3) Provide comments to be reflected in a revised Draft Housing Element to be submitted to the California Department of Housing and Community Development (HCD) for its review.

Attachment:

A. City Council Subcommittee Comments and Housing Element Revisions, August 22, 2022

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ATTACHMENT A
City Council Housing Subcommittee Meeting
August 22, 2022

DRAFT HOUSING ELEMENT UPDATE
Councilmember Comments and Staff Responses

Councilmember Comment Staff Response
GOAL HE-8 and PROGRAM 22: Supportive Housing for Persons with Disabilities  Work with Santa Clara County to identify sites, and
also using the HOZ. Location of supportive housing
sites is a sensitive issue before releasing to the public because the public gets an impression of the location
of the sites.
 Recognize unintended consequences like public
safety; mitigate through community outreach;
coordinate with fire and police.

 HE Update: Added text in bold under Program 22:

Supportive Housing for persons with Disabilities:
“Analyze suitability of sites identified in the Sites
Inventory for permanent supportive housing
development and conduct community engagement
about those sites.”
 HE Program 15: Housing Opportunity Zones already
includes “Encouragement of special needs housing,
including senior living, housing for persons with
disabilities, and workforce housing “

PROGRAM 1: Adequate Sites for RHNA
 Set specific goals for rezone sites: 150% of what’s
calculated RHNA. Balance commercial and residential
for tax revenue

 HE Program 1: Adequate Sites for RHNA already
includes “By December 2024, rezone properties as
outlined in Appendix E to provide adequate sites to
accommodate the RHNA shortfall. The rezoned sites
will meet the requirements of Government Code
65583.2, including but not limited to a minimum
density of 20 units per acre (as the low end of the
density range for each zoning district), minimum site
size to permit at least 16 units on site, and zoned to
allow ownership and rental housing by right in which
at least 20 percent of the units are affordable to
lower income households.”
 HE Policy 1.9: Adequate Sites and Housing
Production already includes “Support introducing
housing and mixed-use development in older
commercial centers (located in C-2, TC, and HS
zoning districts) while balancing the importance of
preserving convenient neighborhood and
community-serving retail uses.”

PROGRAM 4: Accessory Dwelling Units (ADUs)
 ADU average is low- revisit incentives to have more
ADUs per year over the next 8 years.
 Explore subsidies for ADUs through ARPA funding?
 Also have pre-approved plans for ADUs
 Offer prefab options for constructing ADUs

 HE Program 4: ADUs already includes action- “By the
end of 2024, pre-approve building permit plans of
prototype ADU units and evaluate prefab ADUs to
simplify and streamline the permitting process for
homeowners.”

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PROGRAM 9: Anti-Displacement
 Expand on what specific measures are included. CC
will be supportive of programs that provide
resources like legal aid or monitor resources.

However, if we have specific policies that might
impact the rental market like rent stabilization. there might be some contention, so tread carefully

HE Update: Reworded text under Program 9: Anti
Displacement: “Supplement the California Tenant
Protection Act of 2019 by evaluating and enacting certain anti-displacement measures by 2028. Example measures
for exploration include:
 Targeting assistance to lower resource
neighborhoods through Project Sentinel or similar
service providers.
 Increasing fair housing awareness and proactively
monitor and enforce fair housing compliance.
 Developing and adopting relocation assistance
program.
 Expanding tenant protections, such as anti-eviction
measures.
 Expanding Rent Relief and Mortgage Protection
Program.
 Supporting a tenant resource center, including
expanding legal services and other assistance for
lower-income households.
 Implementing right to counsel in residential eviction proceedings.
 Creating a rental inspection program for apartment
buildings.”

PROGRAM 11: Preservation of At-Risk Housing
 Sunnyhills: Keep them affordable for 5 years, but
need more permanent options

 HE Update: For program 11: Preservation of At-Risk
Housing, added action “By 2026, evaluate and
identify more permanent funding options for the
Sunnyhills apartments to ensure long-term housing
stability and affordability.”

PROGRAM 16: Affordable Housing Development
 Subsidy- Explore opportunities with the Housing
Trust.
 Provide low interest loans to affordable housing
projects.
 Explore surplus Land programs- land donation
options
 Partner with the County not just for supportive
housing but also for additional funding sources

 HE Policy HE 1.7 Adequate Sites includes reference
to land donation and land trusts. Add text: “Where
feasible, explore the options for land swaps, land
transfers, land banking, or other proactive solutions
to create housing sites.”
 HE Program 20: Specific Plans already includes
“Annually pursue funding available at the local,
state, and federal levels, such as Measure A
funding.”
 HE Update: Program 16: Affordable Housing
Development: Added text “The City will also explore
alternative models of homeownership and
affordability, such as community land trusts, shared
equity programs, and collective ownership models.”

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PROGRAM 20: Specific Plans
 Land Use: Establish parking maximums
 Look at options for fee waivers or reductions for
variety of housing types. Reduce transportation
related infrastructure costs will help developers.

 HE Policy HE 1.8 Adequate Sites already includes
“Regularly review the land use designations and
zoning districts to encourage a variety of housing
types to be developed at a range of densities to
equitably serve varying household types.”
 HE Program 20: Specific Plans already includes
“Establish minimum zoning densities and maximum
parking standards. Address shared parking and
unbundled parking.”
 HE Update: Program 20: Specific Plans added action
“Explore fee deferrals or waivers for 100%
affordable housing projects in the Specific Plan
areas”

PROGRAM 21: Zoning Code Updates
 Tiny Homes- California has strict regulation and treat it like a regular home. Zoning Code doesn’t currently
include tiny homes. City Council has directed to start
a feasibility study.
 Also look at prefab homes (especially for ADUs); ODS
looks into this; remove barriers.

 HE Update: Added Policy HE 8.6 under Goal HE 8:

Unhoused Population: Conduct a feasibility study to
establish a low barrier navigation center (e.g., as a
“tiny home village”) to provide temporary housing
and case management services for the unhoused
population.
 HE Update: Program 21: Zoning Code Amendments
added action “Tiny Homes. Update the zoning or
building code to accommodate tiny homes based on
City Council directed feasibility study. Study to be
completed by 2023.”

PROGRAM 23: Large Units for Families
 Good to see focus on housing for families- Missing
middle housing resources. Explore additional options.

HE Update: Added Program 24: “Missing Middle”
Housing with amended language:
 Through Program 21: Zoning Code Amendments,
identify possible zoning ordinance changes to
further promote a mix of dwelling unit types and
sizes, particularly in high resource neighborhoods.
 Evaluate a reduced affordable housing fee and
expedited development review for missing middle
housing projects.
 Promote opportunities to create duplexes and urban
lot splits with the City’s SB 9 Toolkit.
 Integrate SB 9 Toolkit trainings in the ADU Monday
program.
 Support City participation in state financing
programs for middle-income workforce housing
developments that meet the City’s adopted Goals
and Performance Measures for these projects.

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Miscellaneous Comments
 Pursue additional State funding through Prohousing
designation.

 HE Policy 10.1 Implementation Capacity already
includes “Implement the Housing Element and other
programs to qualify the City for the Prohousing
Program, administered by the California Department
of Housing and Community Development (HCD), to
receive preference in scoring for competitive
housing, community development, and
infrastructure programs.”
 Expand toolbox to acquire affordable housing
properties-
 HE Policy 1.7 Adequate Sites includes reference to
land donation and land trusts. Add text: “Where
feasible, explore the options for land swaps, land
transfers, or land banking, or other proactive
solutions to create housing sites.”
 While not acquisition, HE includes programs or
actions to increase affordable housing sites, such as:
o Program 3: Lot Consolidation - “By the end of
2024, develop tools to facilitate and incentivize
lot consolidation.”
o Program 20: Specific Plans (Metro Specific Plan)
“Collaborate with the Valley Transportation
Authority (VTA) to develop affordable housing
on available VTA sites.”

 Explore Enhanced Infrastructure Financing Districts
(EIFD) – topic of City Council interest for a few years.

 HE Policy 10.5 Implementation Strategy: Policy to be
added to “Explore creating an Enhanced
Infrastructure Financing District (EIFD) to assist with producing new affordable housing, rehabilitating,
and conserving existing affordable housing, and
constructing supporting infrastructure and
facilities.”

 Facilitate adaptive reuse to expand Sites Inventory  HE Policy 3.7 Barriers to Housing Production already addresses adaptive reuse, but amend language as
follows: “Support the adaptive reuse, renovation, or
redevelopment of economically underutilized
properties or buildings for residential or mixed-use
development.”

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CITY OF MILPITAS

AGENDA REPORT
(AR)

Item Title: Discussion of State Funding Plan for Bike Lanes Facilities Enhancement and Homelessness Prevention and Unhoused Services (Staff Contacts: Ashwini Kantak, Assistant City Manager, 408-586-3053, Walter C. Rossmann, Deputy City Manager, 408-586-3012)
Category: Leadership and Support Services
Meeting Date: 9/20/2022
Recommendation: Receive presentation and provide feedback on the approved $2.5 Million in State Funding for Bike Lane Facilities Enhancement and Homelessness Prevention and Unhoused Services.

Background:

In March 2022, the City sent a letter (Attachment 1) to Assemblymember Alex Lee’s office, requesting one-time funding for three projects: Cardoza softball fields (up to $7 million), bike lanes facilities enhancement ($1 million), and homelessness prevention and unhoused services ($1.5 million). On June 27, Assemblymember Lee’s office informed the City that they had secured $2.5 million in one-time state funding for two of the three requests: bike lanes facilities enhancement and homeless prevention and unhoused services.

Staff is still awaiting additional information on when funds will be available, expenditure and encumbrance deadlines, and extent of flexibility with regards to programs and initiatives, within the broader funding areas.

Additionally, since the funding request was made by the City, there have been some changes such as new direction from the City Council and additional funding available from other sources for programs similar to those in the State funding request.

Thus, this staff report provides background on the two programs approved to receive the one-time funding but does not make any recommendations for the use of the funds. Based on Council input received, the availability of other funding sources, and information from the State about the one-time funding, staff will bring back recommendations to the Council in the future.

Analysis:

Bike Lanes Facilities Enhancement
The City Council adopted the Trails, Pedestrian, and Bicycle Master Plan in May 2022. The Master Plan includes recommendations to expand and improve the safety of the City’s bicycle facilities. The $1 million one- time state funding could be used for projects to expedite construction of the following bicycle facility improvements identified in the Master Plan:
 Install bike signals, enhanced intersection bike pavement markings, and bike signage to improve bicyclist safety at high-traffic signalized intersections on bike routes to schools and employment centers. Examples of intersections include Milpitas Boulevard/Jacklin Road/Abel Street, Tasman Drive/McCarthy Boulevard, or Tasman Drive/Alder Drive. The estimated cost for these improvements is $750,000.

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 Stripe new and/or enhance bike pavement markings, such as green bike lanes and buffered bike lanes, and signage per the adopted Trail, Pedestrian, and Bicycle Master Plan. The estimated cost for these improvements is $250,000.

Homelessness Prevention and Unhoused Services
The funding request under this area included supporting the continuation and expansion of the City’s mobile shower and laundry services, twice a week, for a period of 3 years ($300,000), establishing a Milpitas Resource Center as a 2-year pilot program ($500,000) and providing rent relief to vulnerable Milpitas residents ($700,000).

At the January 5, 2021, City Council meeting, Council approved the establishment of a new ad hoc Homelessness Task Force comprised of up to ten members. Its purpose was to expand resident participation in addressing homelessness issues within the City and provide solutions, feedback, and input that will contribute to improving the quality of life of the Milpitas community, neighborhoods, and residents. The Task Force held ten meetings from March 2021 through January 2022 and developed recommendations, which were presented to the City Council on February 1, 2022. The funding request to the State was based on these recommendations.

On March 1 and April 19, 2022, City Council further discussed the report and recommendations from the Homelessness Task Force. Although individual Councilmembers expressed interest in various approaches to assist the unhoused population, including expansion of mobile shower and laundry services, a day worker/resource center to assist individuals in finding work and gaining self-sufficiency, a navigation center to assist unhoused individuals with case management and wrap-around services, and a Tiny Home Village feasibility study, the Council majority only directed staff to move forward with a Tiny Homes Village feasibility study and did not direct staff to proceed with a day worker/resource center.

Based on the Homelessness Task Force’s recommendations, feedback from the City Council, and additional funding from other sources, staff have summarized the impacts of the continuation and expansion of current programs.

Mobile Shower and Laundry Services: This service began in March 2021 as a 6-month pilot program funded through the California Board of State and Community Corrections (BSCC) grant in the amount of $21,372. In September 2021, the City Council approved staff’s recommendation to continue funding weekly services for an additional 12 months, utilizing available BSCC funding, in an amount not to exceed $71,500. In September 2022, the City Council once again approved staff’s recommendation to continue funding through January 15, 2023, utilizing $15,000 in the City’s Low- and Moderate-Income Housing Fund. In total, the amount of funding for mobile shower, laundry, and case management services is $86,552. The cost per session is approximately $820.

As of June 2022, WeHOPE has provided 65 sessions to the unhoused community with shower and laundry services provided to 143 unduplicated clients. In addition to shower and laundry, clients have benefited from services provided by WeHOPE including distributing hygiene kits, clothing, snack bags, case management and/or supportive services, and assessments with the County’s Homeless Engagement and Access Team (HEAT).

Although the City’s request for State funding envisioned an expansion of the Mobile Shower and Laundry service by adding an additional day of service per week, current data indicates that only about one third of the individuals using these services are affiliated with Milpitas while the remaining two thirds come from other cities. Staff will continue to track usage data and may bring back recommendations to use a portion of the funding requested for this service to fund other programs related to homelessness prevention and unhoused services.

Rent Relief: On October 15, 2019, City Council authorized the creation of a Pilot Rent Relief Program. The program was established to serve low- and moderate-income residents, families with dependent children, seniors, disabled individuals, victims of domestic violence, emancipated foster youth, and any resident 279
Item # 22.

occupying a subsidized unit. When the COVID-19 pandemic began to impact the community in spring 2020, the City had already created the program and established processes, which provided much needed assistance to at-risk residents in Milpitas. To date, the Rent Relief Program has been funded through the Affordable Housing Fund, Community Development Block Grant, and the Santa Clara County Emergency Food and Shelter Program. A breakdown of the funding sources is provided below:

(A) Affordable Housing Fund: In October 2019, the City Council allocated $100,000 for the Pilot Rent Relief Program. The Silicon Valley Independent Living Center (SVILC) was directly selected based on Council approval to administer the program on behalf of the City. On March 3, 2020, the City Council authorized the allocation of an additional $100,000 in financial assistance to Milpitas residents and families that have emergency housing needs. With these funds, the City assisted in the prevention of 40 households and 140 Milpitas residents from potential eviction.

(B) Community Development Block Grants (CDBG): On June 23, 2020, the City Council removed “Pilot” from the name of the program and allocated $341,400 of CDBG funding to the Rent Relief Program. In 2020, SVILC served 240 Milpitas residents through the Rent Relief Program. On June 15, 2021, the City Council allocated $327,696 of CDBG funding to the Rent Relief Program. In 2021, SVILC served 280 Milpitas residents through the Rent Relief Program.

(C) Santa Clara County Emergency Food and Shelter Program (EFSP): Since 2020, the City has applied and received grant awards ($70,000 from Phase 37, $50,000 from Phase 38, and $95,927 from Phase 39) for the Rent Relief Program from the Emergency Food and Shelter Program (EFSP). SVILC is the City’s fiscal administrator for these grant funds. To date, the City has been awarded a total of $215,927 from the EFSP program.

(D) American Rescue Plan Act (ARPA): In 2021, the City Council authorized the creation of a Rent and Mortgage Relief Program funded with $1,100,000 in ARPA funds. Per Council direction, the $1,100,000 in assistance will be allocated with 75% of the funding distributed to those in need of rent relief and 25% to mortgage relief. Staff has concluded the request for proposal (RFP) process and has selected LiveStories as the administrator of the new program. Staff anticipates launching the new program in October 2022.

To date, the City has allocated $964,096 in rent relief assistance. Furthermore, there may be additional funding available as noted later in this staff report, for this program. Thus, the State funding requested for this program area may also be considered for other programs and services.

Milpitas Day Worker/Resource Center: The City’s funding request to the State outlines a 2-year pilot program for a Milpitas Day Worker/Resource Center. A day worker/resource center is intended to connect day workers to short-term jobs from residents and businesses. It would also function as a community and support center for clients with training classes and employment services. No overnight accommodations would be provided. However, as noted above, the Council did not direct staff to move forward with this Task Force recommendation. If Council wished to reconsider moving forward with this program, staff would need to bring back recommendations for additional resources since existing staff is already committed to meeting all the federal and state mandates related to housing and implementing programs funded by various grants and City funds.

Other Programs Related to Homelessness Prevention and Unhoused Services:

Unhoused Services: In February 2021, the City of Milpitas contracted with the County of Santa Clara Office of Supportive Housing for the Homeless Engagement and Access Team (HEAT). The contract established an outreach program that identifies, assesses, and refers unhoused individuals in the City of Milpitas to appropriate housing programs and services. To date, the total contracted amount is $300,000 for services through this fiscal year. Continuation of these services will require additional funding.

Tiny Homes Village Feasibility Study: In August 2022, the City of Milpitas selected a consultant to evaluate the feasibility and prepare a report on an interim Tiny Homes Village housing program for unhoused Milpitas 280
Item # 22.

residents; cost of the study is estimated at about $130,000. Any recommendations directed by the City Council for implementation will require additional funding.

Potential Program for Employee Housing: The high housing cost in Milpitas has made it difficult for local educators to live near where they work. As a result, some Milpitas teachers and staff are leaving the school district and area to live in more affordable communities. Recruiting new teachers and staff has also been difficult as they too find living in the area almost impossible to afford. The loss of educators has created a strain on the Milpitas Unified School District (MUSD). For this reason, the MUSD is urging parents to help house teachers and staff amid the affordable housing shortage in hopes of keeping teachers in the community.

Council may direct staff to explore the creation of a program specifically designed to aid MUSD teachers. This program could also be expanded to other individuals working in Milpitas that are unable to afford housing in the city or within a reasonable distance.

In addition to the programs noted above, other counties and cities have been implementing programs such as incentivizing leasing to locals, subsidizing ADUs with deed restrictions, and collaborating on a regional level to build navigation centers, provide wrap around services, and provide emergency housing. Once State funding rules have been clarified staff will bring forward additional information for Council consideration of funding.

Additional Funding Sources:

As noted earlier, subsequent to the funding request submitted to the State, additional funding related to housing has become available. As affordable housing, homelessness prevention, and unhoused services all continue to be a high priority for the City, staff wants to ensure that funding from various sources is maximized to help the Milpitas community.

Regional Early Impact Planning Grant Program (REAP): In July 2022, the Association of Bay Area Governments (ABAG) announced a suballocation award of one-hundred forty-two thousand seven-hundred eighteen dollars ($142,718) of REAP funding to the City of Milpitas. The Department of Housing and Community Development’s REAP Grant Program was created to accelerate housing production and facilitate compliance in implementing the sixth cycle of the regional housing needs assessment. The funds were requested to procure a consultant to create an Assessment of Fair Housing in preparing for the Housing Element and to partially fund Raimi and Associates as the consultant for the Housing Element.

Permanent Local Housing Allocation (PLHA): In October 2022, the City of Milpitas will be applying for the PLHA funding. PLHA funding is flexible and can be used for affordable housing development and to assist persons experiencing or who are at risk of homelessness. The City of Milpitas entitlement for 2019 and 2020 is $609,445. The estimated five-year funding (2019-2023) for the City of Milpitas is $1,431,570.

Next Steps

Based on Council input and clarity regarding the parameters of the State funding, staff will bring forward programmatic proposals and/or appropriation actions during the next few months.

Fiscal Impact:

There is no fiscal impact associated with accepting this report. Once Council provides direction on what program to fund with these monies, Finance will appropriate the monies during the FY 2022-23 mid-year council report.

California Environmental Quality Act:

The presentation and City Council feedback have no potential for causing a significant effect on the environment and are exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15061(b)(3) at this point. Further, the recommendations are also exempt under CEQA Guideline 15301 if the City Council decides to continue Dignity on Wheels mobile shower and laundry services as the proposed services by WeHOPE would likely be placed in an existing City facility, and/or CEQA 281
Item # 22.

Guideline 15311 as an accessory structure to an existing City facility. Each Guideline referenced above shall serve as an independent basis to determine the activity is exempt from CEQA.

Recommendation:

Receive presentation and provide feedback on the approved $2.5 Million in State Funding for Bike Lane Facilities Enhancement and Homelessness Prevention and Unhoused Services.

Attachment:

1. One-Time State Funding Request Letter

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Item # 22.

455 EAST CALAVERAS BOULEVARD , MILPITAS , CALIFORNIA 95035- 5479 PHONE: 408- 586- 3059, www.ci.milpitas.ca.gov

March 28, 2022

Honorable Assemblymember Alex Lee via E-mail:
1313 North Milpitas Boulevard [email protected] Suite #255
Milpitas, CA 95035

RE: City of Milpitas’ One-Time State Funding Requests

Honorable Assemblymember Lee,

Per our conversation, and on behalf of the City of Milpitas, I am requesting your support of one- time funding as part of the FY 2022-23 State budget for the following three projects.

Cardoza Park Softball Fields Improvement
The Milpitas North Valley Police Athletic League Softball League, formerly known as Milpitas North Valley Bobby Sox, has offered inclusive softball activities for 400 Milpitas youth annually for 24 years focusing on giving young girls in our community the confidence and leadership skills to succeed in life, while also being active and healthy using the fundamentals of athletics.

For most of the program’s life, it was held at the Russell Middle School Bobby Sox fields, owned the Milpitas Unified School District (MUSD). In 2021, MUSD started to renovate the Russel Middle School fields for multi-use play with a track, soccer field, and small softball field. To support the continuation of softball league activities, the City temporarily transitioned the PAL Softball Program to Dixon Landing Park Sports fields. Aside from the youth players and their families, thousands of interleague players and spectators stretching from San Lorenzo to the Central Valley, visit Milpitas for team play, scrimmages, and tournaments.

In December 2021, the City Council approved the City’s Parks Master Plan, which provides for four softball fields to ensure a permanent home for Milpitas softball activities. As part of the FY 2023-2027 Capital Improvement Program, the City Council will allocate $500,000 to fund the design of the project. The cost for construction is estimated at $7 million. The City requests support for all or a portion of the estimated construction cost.

Bike Lane Facilities Enhancement
The City Council is scheduled to approve the City of Milpitas Climate Action Plan in June 2022.

In 2019, approximately 60% of Green House Gas emissions were related to on-road vehicle traffic. To encourage greater mode shift from motorized vehicle travel, the city desires improving existing bicycle facilities to promote multi-modal nature of roadways and increase bicyclist comfort. The City maintains stripping for approximately 26 miles of bike lanes (Class II bike lanes); however, the vast majority of these lanes do not have the green-colored pavement

C ITY OF M ILPITAS

O FFICE OF M AYOR R ICH T RAN

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Item # 22.

City of Milpitas’ One-Time State Funding Requests Page 2 of 2 March 28, 2022

identifying potential areas of conflict, which are typically close to intersections, or other protective measures.

In order to support safer bicycle traffic, the City requests funding in the amount of $1,000,000.

This allocation would support upgrading existing bike lane infrastructure with green-colored pavement at intersections and through conflict areas, establish green-colored intersection bike boxes, buffered bike lanes, and/or separated bikeways marked with bollards, posts, or on-street parking.

Homelessness Prevention and Unhoused Services
Affordable Housing policies and programs and services for the unhoused are a high priority for the City Council. On March 1, 2022, the City Council provided input on the recently completed Homelessness Task Force report and individual members of the Council expressed interest in several items such as a homelessness help center, safe parking areas, prevention programs, a day worker center, a feasibility study for a navigation center, a dumpster or trash cans and expansion of the City’s mobile shower and laundry services. The City also contracts with Santa Clara County to provide outreach and assessment services to the unhoused population in Milpitas. Some of the services currently funded by the City draw upon various one-time funding sources. In order to continue to serve those at risk of homelessness and the unhoused population, the City requests funding in the amount of $1,500,000. This allocation would support continuing and expanding the City’s mobile shower and laundry services, twice a week, for a period of 3 years ($300,000), establish a Milpitas Resource Center as a 2-year pilot program ($500,000), and provide rent relief to vulnerable Milpitas residents ($700,000).

On behalf of the City of Milpitas and its residents, I appreciate your consideration and support for the three funding requests. For questions regarding these requests, please contact Ashwini Kantak, Assistant City Manager, at [email protected] or 408-586-3053 or Walter C.

Rossmann, Deputy City Manager, at [email protected] or 408-586-3012.

Sincerely,

Rich Tran, Mayor
City of Milpitas

C: Milpitas City Council
Steve McHarris, City Manager
Ashwini Kantak, Assistant City Manager
Walter C. Rossmann, Deputy City Manager
284
Item # 22.

September 20
, 2022

City Council Meeting

Presentations

Item No. 1
9:

Introduce Ord. No. 38.846 Zoning Text Amendment Relating to Non -
Residential Building Heights

Item No.
20:

Consolidated Annual Performance and Evaluation Report (CAPER) FY 2021
-
2022

Item

No.

21: 2023
-
2031 Housing Element

Item No. 22: State Funding Plan

Item No. C7:

FY 2021
-
22 4th Quarter Financial Status Report

Milpitas City Council Meeting
Item No. 19: Introduce Ord. No. 38.846
Zoning Text Amendment Relating to
Non
-
Residential Building Heights
September 20, 2022
City of Milpitas
455 E. Calaveras Blvd., Milpitas, CA 95035
www.milpitas.gov
408
-
586
-
3000

2 City Council Review and Approval
August 9, 2022
–
Introduction and 1
st
Reading
•
Council expressed support for new regulations to limit maximum building heights in the C2, TC, and HS zones
August 16, 2022
–
2 nd
Reading and Adoption
•
Council postponed adoption of zoning ordinance amendment and directed staff to resolve concerns raised by the Milpitas Involved Citizens (MIC) neighborhood group
August 25, 2022
–
Staff Meeting with MIC
•
Staff and MIC members agree upon three changes to improve the proposed zoning ordinance text amendment.

September 20, 2022
–
Introduction and 1
st
Reading
•
Re
-
introduction of modified draft ordinance amendment
3 Standards for Maximum Building
Heights with Setback Modification

Add a maximum building height of
35 feet or three
stories
in the C2, HS, and TC Town Center zones.

Allow additional discretionary building height (
up to 75
feet or six stories
) with approval of a Conditional Use
Permit (CUP) by the
Planning Commission.

Add clear and objective criteria and required findings for approval of a CUP to allow additional building height.

Limit building heights within a
500
-
foot
buffer area
adjacent to any R1 or R2 residential zone to 30 feet or

2.5 stories, consistent with standards in those zones.
4 Town Center Zone 500' Buffer

5 Jacklin Road/I
-
680 500' Buffer

6 
The design, location, size, and bulk of the proposed
building is
compatible with the existing and future
land uses
in the vicinity.

The building’s design provides an
appropriate
transition in scale
to structures in adjacent
residential districts.

The building’s design
minimizes shadows
on public
sidewalks, public open spaces, and solar facilities on
adjacent parcels through
step
-
backs at upper
levels
or other design elements.

Findings for Approval of CUP to
Allow Increased Building Height
7 Added Findings for Approval of CUP
to Allow Increased Building Height

The building will not create a dominating visual
prominence that is not consistent with the scale
and character with the surrounding
neighborhood.

The building meets all other development
standards that apply to the site where it is
located.

Note: This language is currently located in the Definitions section of the Zoning Ordinance and will be relocated
to the Findings section for clarity and consistency.
8 California Environmental Quality Act
(CEQA)
The introduction and adoption of this ordinance
amendment is not subject to review under the
California Environmental Quality Act (CEQA)
pursuant to CEQA Guidelines Section
15061(b)(3), also known as the “common sense
exemption.”
Exempt pursuant to CEQA Guidelines Section
15183 (Project Consistent with General Plan,
Community Plan, or Zoning)
9 Recommendation

Consider the exemption in accordance with
CEQA Guidelines Section 15061(b)(3)
(Common Sense Exemption) and Sections
15183 (Projects Consistent with a General Plan)

Move to waive the first reading beyond the title
and introduce Ordinance No. 38.846 amending
Sections of Chapter 10 of Title XI (Zoning) of the
Milpitas Municipal Code relating to maximum
building heights in the C2, TC, and HS zones.

City of Milpitas
455 E. Calaveras Blvd., Milpitas, CA 95035
www.milpitas.gov
408
-
586
-
3000

11 Exception
-
Density Bonus

Under State Density Bonus Law and MMC Section
XI
-
10 -

54.15, housing projects that meet the minimum
15% affordable housing requirement are eligible for
concessions and waivers from development standards

Maximum building height is a development standard
that is eligible for a waiver under the State Density
Bonus Law
Milpitas City Council Meeting
Item #20: Consolidated Annual Performance and
Evaluation Report (CAPER) FY 2021
-
2022
September 20, 2022
City of Milpitas
455 E. Calaveras Blvd., Milpitas, CA 95035
www.milpitas.gov
408
-
586
-
3000
2 Background
Community Development Block Grant (CDBG) is
administered by U.S. Department of Housing & Urban
Development (HUD)
Primarily to benefit low
-
& moderate
-
income households
FY 2021
-
2022 Annual Action Plan/CDBG funding
allocations approved by City Council on June 15, 2021

3 What is the CAPER?
Evaluates CDBG grantee performance
HUD required document
Describes the City’s activities for FY 2021
-
2022 and
accomplishments toward the goals from the 2017
-
2022 Consolidated Plan
FY 2021
-
2022 CAPER is the fifth and final progress
report for the 2017
-
2022 Consolidated Plan that was
approved by the City Council in 2017
4 FY2021
-
2022 Funding
Formula funding
-
$682,977
CDBG
-
CV
-
$582,236
Prior Year Unused Funding
-
$17,027.45
Total of $1,282,240.45 to 16 organizations for a total of 21 activities

5 Accomplishments
Maintain and Preserve Existing Housing
Rebuilding Together Silicon Valley
Housing repairs for 24 Milpitas households
Affordable Housing Rental Rehabilitation
Terrace Gardens Senior Housing
Met goal of replacing the existing kitchenette
Fair Housing
Project Sentinel
7 Fair Housing Cases
24 Milpitas residents served

6 Accomplishments
Assist Microenterprises and Small Businesses
Filipino American Chamber of Commerce
Provided direct aid to 15 microenterprises in Milpitas
Public Services For Children and Youth
Child Advocates of Silicon Valley
Connected 7 Milpitas foster youth and children to Court -
Appointed Special Advocates (CASAs)
YWCA Silicon Valley (MUSD Partnership)
Created a domestic violence prevention curriculum for
MUSD students. 457 students served through its
Building Healthy Relationships program

7 Accomplishments
Public Services for Seniors
Catholic Charities Long
-
Term Care Ombudsman Program
312 unduplicated visits to Milpitas residents in long
-
term care
Senior Adults Legal Assistance (SALA)
Provided free legal services to 22 qualified Milpitas seniors The Health Trust
Provided 3,281 hot meals to 19 homebound, low
-
income seniors
The Milpitas Senior Center
Assisted 3 Milpitas seniors who need continued support and education in technology to help bridge the digital divide
Terrace Gardens
-
Meal Delivery
Provided meal delivery services to 148 residents in lieu of community dining, due to the COVID
-
19 pandemic
Sourcewise
-
Meals on Wheels
Provided 66 nutritious home
-
delivered meals to vulnerable Milpitas seniors
who have been impacted by the pandemic
8 Accomplishments
Public Services for Domestic Violence Support
Next Door Solutions to Domestic Violence
Provided 47 residents supportive services & emergency
shelter to victims of domestic violence
YWCA Silicon Valley
Assisted 56 victims of domestic abuse
Responded to 65 crisis calls via 24
-
hour crisis line
Served 147 persons with crisis counseling identified by Milpitas PD

9 Accomplishments
Public Services for Residents at Risk of Eviction
Silicon Valley Independent Living Center (SVILC)
Served 280 Milpitas residents through the Rent Relief Program Community Funding/Public Services
Silicon Valley Independent Living Center (SVILC)
Provided housing services for persons with disabilities to 71 individuals LifeMoves
-
Meal Delivery
Served “grab and go” meals to 21 homeless Milpitas residents Pragnya
Provided support to 132 children, youth, and adults from the Special Needs community
Lighthouse of Hope Counseling Center
Provided 7 Milpitas residents with counseling
10 Accomplishments
Public Improvements
-
Accessibility & Facilities
LifeMoves
-
Villa Shelter
Completed repairs and rehabilitation to Villa Shelter facility allowing LifeMoves to serve 21 Milpitas residents
Next Door Solutions to Domestic Violence (Capital
-
Shelter)
Completed flooring repairs which allows future Milpitas residents to have safe shelter, food, and support services

11 Consolidated Plan Goals

12 Challenges/Successes
Challenges experienced in FY 2021
-
2022 :

Residents wary of in
-
person programming
Capacity restrictions to facilities
Exceeded Expectations:

All subgrantees showed great flexibility
Continued to provide essential services
Taking extra safety precautions to ensure health and
safety
13 Recommendations

1. Open the public hearing, hear testimony, then
move to close the public hearing.

2. Approve the draft FY 2021
-
2022 Community
Development Block Grant (CDBG)’s Consolidated
Annual Performance and Evaluation Report
(CAPER).

3. Authorize the City Manager, or designee, to make
any necessary changes and to submit the
approved draft FY 2021
-
2022 CAPER to the U.S.

Department of Housing and Urban Development
(HUD) to comply with CDBG requirements.

City of Milpitas
455 E. Calaveras Blvd., Milpitas, CA 95035
www.milpitas.gov
408
-
586
-
3000

Milpitas City Council
Item #21 2023
-
2031 Housing
Element
September 20, 2022

2 Meeting Objectives
Milpitas Housing Element
Review Public Draft Housing Element, including:
•
Organization
•
Goals and Programs
•
Housing Sites Inventory
Review Fair Housing Assessment
Share what we heard so far and how to comment on the Housing Element
Housing Element Requirements
Required Element of the
General Plan
Must be updated every 8 years
and certified by HCD
Currently planning for the 6th
cycle (2023
-
2031)
Statutory deadline is January
31, 2023
Plan for Regional Housing
Needs Allocation (RHNA)
3 Milpitas Housing Element
4 Public Review
Draft
Comment by September 30, 2022
Milpitas Housing Element
5 Housing Element Organization
Milpitas Housing Element
Chapter 1: Our Plan
Chapter 2: Our Conversation
Chapter 3: Our Story
Chapter 4: Our Future Housing Needs
Chapter 5: Our Housing Plan

6 7 Technical Appendices
Milpitas Housing Element

7 Draft Housing Goals
Milpitas Housing Element
HE
-
1: Adequate Sites and Housing Production
HE
-
2: Existing Housing Resources
HE
-
3: Barriers to New Housing Production
HE
-
4: Housing Diversity and Affordability
HE
-
5: Fair Housing
HE
-
6: Conservation and Sustainability
HE
-
7: Special Needs Populations
HE
-
8: Unhoused Population
HE
-
9: Mobility
HE
-
10: Implementation Capacity
8 Draft 6
th
Cycle Housing Programs
Milpitas Housing Element
#
Program Name
Description
Status
Goal
Relationship
1 Adequate Sites for RHNA
and Monitoring of No Net
Loss
Monitors sites inventory and ensure an adequate
inventory is available to the City
New
HE
‐
1, HE
‐
2, HE
‐
4 2
Replacement Housing
Requires the replacement of units affordable to
the same or lower income level as a condition of
any development on a nonvacant site
New
HE
‐
2 3
Lot Consolidation
Develops tools to encourage lot consolidation
Expand
HE
‐
1, HE
‐
3 4
Accessory Dwelling Units
Continues incentives for ADU production and
Safe ADU program
Continue
HE
‐
4 5
Neighborhood
Preservation and Code
Enforcement
Enhance neighborhood conditions by enforcing
existing codes through its Code Enforcement
Program
Continue
HE
‐
2 9
Draft 6
th
Cycle Housing Programs
Milpitas Housing Element
#
Program Name
Description
Status
Goal
Relationship
6 Housing Rehabilitation
Provide safety, accessibility, and mobility repairs
to mobile and single
‐
family homes owned by
very low‐ and low‐income households
Continue
HE
‐
2 7
Tenant Assistance and Fair
Housing Services
Utilize the services of Project Sentinel (or similar)
to provide fair housing outreach and assistance
Expand
HE
‐
5, HE
‐
8 8
Fair Housing Enforcement
Use proactive fair housing enforcement,
outreach and education to reduce the prevalence
of housing discrimination
Expand
HE
‐
2, HE
‐
5 9
Anti
‐
Displacement
Supplements California Tenant Protection Act
with additional local anti
‐
displacement measures
Expand
HE
‐
1, HE
‐
2, HE
‐
5, HE
‐
9 10
Place
‐
Based Strategies for
Neighborhood
Improvements
Focus resources to rehabilitate and/or replace
infrastructure in older or under resourced
neighborhoods
New
HE
‐
2 10
Draft 6
th
Cycle Housing Programs
Milpitas Housing Element
#
Program Name
Description
Status
Goal
Relationship
11 Preservation of At
‐
Risk
Housing
Preserve affordable housing units
Continue
HE
‐
2 12
Short
‐
Term Rentals (STRs)
Expand monitoring and enforcement efforts on
STRs
Expand
HE
‐
3 13
Mobile Home Rent Control
Implement Rent Control Ordinance to preserve
the affordability of the mobile homes
Continue
HE
‐
2 14
Rent Review Ordinance
Help resolve rent increase disputes, prohibit
discrimination based on a tenant’s source of
income, and prohibit landlord retaliation
Continue
HE
‐
4, HE
‐
5 15
Housing Opportunity
Zones
Adopt the HOZ to incentivize affordable housing
beyond the requirements of the City’s Affordable
Housing Ordinance
New
HE
‐
1, HE
‐
3, HE
‐
4 11
Draft 6
th
Cycle Housing Programs
Milpitas Housing Element
#
Program Name
Description
Status
Goal
Relationship
16 Affordable Housing
Development
Facilitate the development of affordable housing
through incentive programs
Continue
HE
‐
1, HE
‐
4 17
Affordable Housing
Ordinance
Review and amend the AHO requirements to
ensure the AHO remains effective and reflect
market conditions
Continue
HE
‐
4 18
Non
‐
Residential
Affordable Housing Impact
Fee
Update the non
‐
residential affordable housing
impact fee every five years to reflect the cost of
development
Continue
HE
‐
4 19
Below Market Rate (BMR)
Housing
Assist very
‐
low, low
‐
and moderate
‐
income
households in becoming homeowners
Expand
HE
‐
4 20
Specific Plans
Adopt and implement the Metro Specific Plan
and the Gateway
‐
Main Street Specific Plan
Continue
HE
‐
1, HE
‐
4, HE
‐
6 12
Draft 6
th
Cycle Housing Programs
Milpitas Housing Element
#
Program Name
Description
Status
Goal
Relationship
21 Zoning Code Amendments
Amend the Zoning Code to comply with the
latest state laws and reduce regulatory barriers
to residential development
New
HE
‐
1, HE
‐
3, HE
‐
4 22
Supportive Housing for
Persons with Disabilities
Collaborate with the County to identify sites and
resources for supportive housing
New
HE
‐
1, HE
‐
3, HE
‐
4, HE
‐
7, HE
‐
8 23
Large Units for Families
with Children in
Multifamily Housing
Identify possible zoning incentives for multifamily
developments that include units with three or
more bedrooms
New
HE
‐
3, HE
‐
4, HE
‐
7 24
Missing Middle Housing
Facilitate smaller
‐
scale multi
‐
unit housing and
workforce housing in lower density residential
neighborhoods
New
HE
‐
3, HE
‐
1 Regional Housing Needs Allocation
4 th
, 5
th
, and 6
th
cycles
Projected Future Housing Needs
+ Unmet Existing Housing Needs
= Higher Allocation
4 th
Cycle
2008
-
2015
5 th
Cycle
2015
-
2023
6 th
Cycle
2023
-
2031
6,713
3,290
2,487
+204%
13 Milpitas Housing Element
Sites Inventory
Pipeline Sites:

Projects that have been a
pproved, applications submitted,
or those that
are
under construction but are not expected
to receive a Certificate of Occupancy until after July 1, 2022
Opportunity Sites:

Vacant or underutilized sites, currently zoned for residential or mixed
-
use, and likely to redevelop during this eight
-
year
planning period
Rezone Sites:

Sites that are potential candidates for redevelopment but would require to be rezoned to allow residential use
(‘NCMU’ GP designation or ‘C2’ Commercial zone)
Sites Inventory
–
North

Sites Inventory
–
South

Sites Inventory
Likely Sites
Very Low
<50% AMI
Low
50 -
80% AMI
Moderate
80 -
120% AMI
Above Mod
>120% AMI
Total
RHNA
1,685
970
1,131
2,927
6,713
Credits
197
274
169
1,800
2,441
Potential ADUs
74 74
74 25
248
Pipeline Projects
123
200
95 1,775
2,193
Remaining RHNA
1,488
696
962
1,127
4,272
Opportunity Sites
1,091
1,091
1,576
2,027
5,785
Rezone Sites
225
225
319
478
1,247
Total Capacity (Opportunity +
Rezone)
1,316
1,316
1,895
2,505
7,032
Surplus (%)
449 (21%)
993 (97%)
1,378 (122%)
2,760 (65%)
Fair Housing
History and Context
Why does the Housing Element include an "Assessment
of Fair Housing" and How Did We Get Here?
19 Fair Housing Act's duty
to "affirmatively further
fair housing" (AFFH)
1968
Housing & Community
Development Act
certification requirement
1974
U.S. Department of
Housing & Urban
Development (HUD)
creates the Analysis of
Impediments to Fair
Housing Choice (AI)
requirement
1995
Assessment of Fair
Housing requirements
replaces AI
2015
Trump Administration
suspension of the
Assessment of Fair
Housing process
2018
State of California
enacts A.B. 686
2018
Trump Administration
repeals 2015 AFFH
regulation
2020
Biden Administration
restores definitions from
2015 regulation and
announces intent to
promulgate a new
regulation
2021
19 Milpitas Housing Element
Fair Housing
What topics does the Assessment of Fair Housing address? Segregation and integration
Racially and ethnically concentrated areas of poverty
Displacement
Disproportionate housing needs
Disparities in access to opportunity
Fair housing enforcement and patterns of discrimination Issues specific to persons with to persons with disabilities and residents of subsidized housing
20 Milpitas Housing Element
Fair Housing
What data and information informed the Assessment?
Data and geographic information systems
(GIS) maps from HUD and the State of
California
Data regarding City programs
Community input
Review of policies and practices
21 Milpitas Housing Element
Sites Inventory and TCAC Opportunity Area
Composite Score by Tract (2021)
Fair Housing: Takeaways and Programs
What did our analysis of all of this information tell us? Although there is segregation on the basis of race
and ethnicity in the broader region,
Milpitas
–
within its own boundaries
–
is not highly
segregated.

Most neighborhoods have similar
compositions. All are majority Asian American and
Pacific Islander.

One portion of the city, including the
southern
portion of the
North Park Victoria
–
Kennedy Dr.
neighborhood and the northern
portion of the
South Park Victoria
–
Yosemite Dr.

Neighborhood
,
has slightly higher Latino/a/x
population than other
neighborhoods and slightly
lower income levels.

Housing costs in the city and the region
are
extremely high, and Latino/a/x households,
Vietnamese households, Black households,
and persons with disabilities have experienced
the brunt of that impact
. Displacement
continues
to be a frequent result
of rising costs.

What programs does the Housing Element
propose to address these challenges?
•
Tenant Assistance and Fair Housing Services
•
Fair Housing Enforcement, Outreach, and
Education
•
Anti
-
Displacement
•
Applying a fair housing lens across all
programs
22 Milpitas Housing Element
23 Community Engagement
As of September 14
Milpitas Housing Element
Stakeholder meetings and
roundtables
Workshops
Surveys
Pop
-
up meetings
City Council and Housing Sub
-
Committee meetings
Project website
>1,400
number of webpage
visits
9 number of
community
engagement
events
31 stakeholders
interviewed
96 meeting
participants
71 survey
participants
24 HE Release Engagement
Comment Period Ends on September 30
Milpitas Housing Element
8/22 Housing Sub
-
Committee
8/31 Planning Commission
8/31 Community Survey #3 & Interactive Housing Element Launched 9/13 Workshop #3
9/16 Community Development Roundtable
9/18 Farmers’ Market Pop
-
Up at the Great Mall
9/29 Santa Clara County Housing Collaborative Meeting
25 8/22 Housing Subcommittee
Discussion Topics
Milpitas Housing Element
Supportive housing locations
Community outreach
Rezone Sites density and capacity
Accessory Dwelling Units
•
Incentives to increase ADUs
•
Subsidies
•
Pre
-
approved plans and pre
-
fab
Anti
-
displacement measures
Preservation of at
-
risk housing
Missing Middle Housing
Affordable Housing Development
•
Expand toolbox to acquire land:

Surplus lands or land donation, land
trusts
•
Low interest loans
•
Collaborate with county for funding
sources
Specific Plans
•
Establish parking minimums
•
Fee waivers or reductions
Tiny Homes
Prohousing
Designation
EIFDs
26 8/22 Housing Subcommittee Discussion
Program Additions Already Integrated into Public Draft
Milpitas Housing Element
Discussion Topic
Program Additions
Anti
-
Displacement Policies
Program 9:

Focused potential actions to study on provision of
resources and monitoring
At
-
Risk, Affordable Housing
Preservation
Program 11:

Added action to explore sustainable sources of
funding to preserve affordable housing
Alternative Homeownership Models
Program 18:

Added action to explore alternative models of
homeownership and affordability, such as community land trusts, shared equity programs
Fee Deferrals/Waivers
Program 20:

Added action to explore fee deferrals for 100%
affordable housing projects
Tiny Homes
Program 21:

Added Tiny Homes study as an action step
Supportive Housing Engagement
Program 22:

Added engagement action step about sites
Missing Middle Housing
Program 24:

Added new program
27 8/31 Planning Commission Discussion
Milpitas Housing Element
Commission Comments
•
Location of sites in the Hillside (if any)
•
Density not conducive for low
-
income units. No sites identified.
•
Methodology to calculate site capacity
•
Supported lot consolidation
Public Comments
•
Housing Choices for Persons with Developmental Disabilities •
Integration in typical affordable housing
•
Coordination of housing with onsite supportive services •
A mix of unit sizes
•
Location near public transit
•
Deeply affordable housing
28 Community Conversation Discussion
Milpitas Housing Element
Monitor and track progress of RHNA
units and programs
Address fair housing through the Sites
Inventory
Preserve affordability of
Sunnyhills
and
Mobile Home parks
Collaborate with State, County, regional
and local organizations for additional
funding, land, and other resources
Provide incentives for affordable
housing and ADUs to reduce costs
Expand funding sources
Priority Programs
Adequate Sites to meet
RHNA
Missing Middle Housing
Accessory Dwelling Units
Preservation of At
-
Risk
Housing
Affordable Housing
Supportive Housing
Housing Rehabilitation
29 Next Steps after the Comment Period
Milpitas Housing Element
Submit revised draft to HCD for 90
-
day review
Compete CEQA analysis
Return to Planning Commission in early 2023 for recommendation to City Council
30 Recommendation
Milpitas Housing Element
Receive a presentation on the Draft Housing Element;
Receive public comments; and
Provide comments to be reflected in a revised Draft Housing Element to be submitted to the California Department of Housing and Community Development (HCD) for its review.

City of Milpitas
455 E. Calaveras Blvd., Milpitas, CA 95035
www.ci.milpitas.ca.gov 408
-
586
-
3000

32 Housing Element Update Process
Milpitas Housing Element

33 Affirmatively Furthering Fair Housing
Milpitas Housing Element
Fair Housing Outreach and Education
Housing Mobility
•
A Variety of Housing Choices
•
Ability to Age in the Community
•
Access to Services and Amenities
New Opportunities in High Resource
Areas
Place
-
Based Strategies for Neighborhood
Improvements
Tenant Protection and Anti
-
Displacement
•
Replacement of Demolished Units

SITES INVENTORY AND TCAC OPPORTUNITY
AREA COMPOSITE SCORE BY TRACT (2021)
The City’s 8
-
year plan for meeting the
housing needs of everyone in the community
Provide a variety of
housing types of all
income groups
Assist in the
development of lower
and moderate
-
income
housing
Remove constraints
to housing
Conserve and
improve existing
housing
Promote fair housing
34 Milpitas Housing Element
35 To Provide Feedback on the Housing
Element, Learn More, and Stay Involved
Milpitas Housing Element
Visit the Milpitas Housing Element website at
https://milpitashousingelement.com/
Comment directly on the Housing Element using Konveio at https://milpitashousingelement.com/engagement
-
tool/
Take the online survey at
https://bit.ly/MilpitasHESurvey3
Milpitas Housing Element team at
[email protected]

Milpitas Housing Element
36 RHNA and Sites
Inventory
What We Have
Heard So Far
Milpitas Housing Element
38 Housing Needs,
Constraints, and
Opportunities
39 Housing Need Considerations
Milpitas Housing Element
Age Composition
: The large increase in the older age groups from 2010
to 2019
indicates a potential need for more smaller units, senior housing, and assisted living facilities
in the future
Jobs
: Between 2002 and 2018, the number of jobs in Milpitas increased by 29%. Milpitas has more low
-
wage jobs than low
-
wage residents and
more high
-
wage jobs than high
-
wage residents.

This indicates that Milpitas
needs to add a wide range of housing types to meet the needs of its workforce
Household Size
: The household size distribution in Milpitas
indicates that
a range of unit sizes are needed in the City
to meet the needs of different
household sizes.
40 Housing Need Considerations
Milpitas Housing Element
Housing Stock
: Milpitas has a high percentage of single
-
family homes.

The City should
continue to encourage and facilitate Accessory Dwelling Units
(like the
Accessory Dwelling Unit (ADU) Incentive Program
and
the
Safe ADU Legalization Program)
Rents
:

Fifteen percent of renters pay more than 50 percent of their household income toward rent
. High rates of cost burden in Milpitas and
Santa Clara County are reflective of a housing shortage and high housing costs,
illustrating the need for additional housing units
, especially for
lower
-
income households.

Ownership
: The largest proportion of homes had a value in the range of $750k
-
$1M in 2019.

Home prices increased by 125.4% from 2010 to 2020
emphasizing the need for affordable housing alternatives .
41 Housing Need Considerations
Milpitas Housing Element
Special Needs
•
Milpitas has 125 unsheltered individuals and no sheltered individuals, lower than other parts of the region.
•
In Milpitas, 7.2% of residents have a disability of any kind and may require accessible housing
•

15.1% of Milpitas households are larger households with five or more people, who likely need larger housing units with three bedrooms or more
42 Housing Constraint and Opportunity
Considerations
Milpitas Housing Element
Land Use Controls
•
General Plan / Zoning:

No significant housing constraints. Town
Center (TC) and Neighborhood Commercial Mixed Use (NCMU) designations more likely to evolve as commercial sites with limited housing
•
Parking Requirements:

The parking requirements are high outside the
specific plan areas and overlay zones.

Provision for a Variety of Housing Types
•
No significant housing constraints, allows for a variety of housing types •
New programs needed to address Supportive Housing, Emergency Shelters, Farmworker/Employee housing, and Residential Care Facilities
43 Housing Constraint and Opportunity
Considerations
Milpitas Housing Element
Inclusionary Housing
•
The City of Milpitas’ Affordable Housing Ordinance (AHO) came into effect in July 2018 and requires all new residential projects with ten or more units to develop 15% of the total number of units as affordable units
Development Processes and Procedures
•
Review and approval timelines are similar to
average times taken by
other jurisdictions in Santa Clara County
•
Compared to other cities in Santa Clara County, Milpitas has higher fees per unit for single and multi
-
family developments
44 Regional Housing Constraint and
Opportunity Considerations
Milpitas Housing Element
Cost and Availability of Land:

High land values and limited availability of
land. Few property owners willing to sell or redevelop
Timing:

Delay in processing of applications or changes occurring during the processing phase of a project
Construction Costs:

High costs of construction including labor and
materials. Supply chain and labor shortages also make it challenging Mortgage and Financing:

High home prices and high down payments
can pose a constraint to home buyers. High interest rate on loans can also deter home buyers and affect the housing market
Hazards
: City at risk to geologic and seismic hazards, wildfire, flood, and sea level rise
45 Draft 6
th
Cycle Housing Programs
HE
‐
1 Adequate Sites and
Housing Production
HE
‐
2 Existing Housing
Resources
HE
‐
3 Barriers to New
Housing Production
HE
‐
4 Housing Diversity and
Affordability
HE
‐
5 Fair Housing
HE
‐
7 and HE
‐
8 Special Needs
Populations
P
‐
1 Adequate Sites for
RHNA and Monitoring of
No Net Loss
P
‐
5 Neighborhood
Preservation and Code
Enforcement
P
‐
4 Accessory Dwelling
Units
P
‐
15 Housing
Opportunity Zones
P
‐
7 Tenant Assistance
and Fair Housing Services
P
‐
21 Zoning and Building
Code Amendments
P
‐
2 Replacement
Housing
P
‐
6 Housing
Rehabilitation
P
‐
21 Zoning and Building
Code Amendments
P
‐
16 Affordable Housing
Development
P
‐
8 Fair Housing
Enforcement
P
‐
22 Supportive Housing
for Persons with
Disabilities
P
‐
3 Lot Consolidation
P
‐
10 Place
‐
Based
Strategies for
Neighborhood
Improvements
P
‐
17 Affordable Housing
Ordinance
P
‐
9 Anti
‐
Displacement
P
‐
23 Large Units for
Families with Children in
Multifamily Housing
P
‐
20 Specific Plans
P
‐
11 Preservation of At
‐
Risk Housing
P
‐
18 Non
‐
Residential
Affordable Housing
Impact Fee
P
‐
13 Mobile Home Rent
Control
P
‐
24 Missing Middle
Housing
P
‐
12 Short
‐
Term Rentals
P
‐
19 Below Market Rate
(BMR) Housing
P
‐
14 Rent Review
Ordinance
46 Examples: Technical Analysis to
Program Development
Milpitas Housing Element
Constraints Analysis
Permitting and
Processing
Procedures
Review Permitting
Requirements for
Housing
Program 21: Zoning
Code Amendments
Land Use Controls
Review
Development
Standards
Program 15:

Housing
Opportunity Zone
Program 20:

Specific Plans
Past
Accomplishments
Review
Review Existing
Programs
Establish quantified
objectives based on
past performance
Program 6: Housing
Preservation
Milpitas Housing Element
47 Phase 1 Engagement
Strengths and Successes
Affordability
•
Projects with a high
-
level of affordability, such as Sango
Court and Sunnyhills
•
ADUs allow for affordable housing to be built citywide
Rent and Homelessness Assistance
•
Rent relief program and other funds are working well and have quick turnarounds
•
Extended Stay America Conversion program
New Development
•
Transit
-
oriented
•
Main Street densification and mixed
-
use
•
Improved planning and approval
“It’s been
encouraging to see
more developers
move away from
feeing out of building
affordable units and
actually building
them. This is good
because the fees do
not always translate
to those units being
built later on.”
Milpitas Housing Element
48 Phase 1 Engagement
Weaknesses and Challenges
Housing Cost and Cost of Living
•
High overall
•
Acute impact on low
-
income people, younger generation,
people with fixed income
•
Homeownership is out of reach
Lack of Housing for Specific Groups
•
Families with children, low
-
income households, young
adults/professionals, persons with disabilities
Low Supply
•
Both for renting and for sale
Overdevelopment and Overcrowding
•
Balanced approach distributed across the city
•
Impact on infrastructure
“
My vision for housing in
Milpitas is for every person
that already lives here in
Milpitas to be able to afford
to live here. Everyone here
wants to stay in this town,
but many are feeling they
can’t afford it because all
the homes to buy are over
1 million. Rent is $2,500
and up starting for a one
-
bedroom. Many of the
people that live here help
the city keep their
businesses going but on
little wage. Many are living
paycheck
-
to
-
paycheck that
middle income has become
unrealistic for most here.”
49 Phase 2 Engagement
Policy and Program Ideas
Milpitas Housing Element
Housing Production and Sites
•
Finalize Metro Plan and Gateway
-
Main Street Specific Plan
•
Adopt Housing Opportunity Zone
•
Implement SB 9
Diverse, Affordable Housing
•
Continue ADU programs
•
Expand first
-
time homebuyers program
•
Update Affordable Housing Ordinance to not allow in lieu fees •
Consider vacancy tax, transfer tax or similar
•
Consider other housing models, e.g., community land trust, co -
housing, public
housing
“XXXX”
50 Phase 2 Engagement
Policy and Program Ideas
Milpitas Housing Element
Housing for Special Needs Groups
•
Provide incentives for housing for people with disabilities •
Support higher quality senior housing
•
Partner with supportive services providers
Housing Preservation
•
Protect mobile homes
•
Continue rent relief program
•
Create rent registry / inventory
Fair Housing
•
Expand education and outreach around reasonable accommodation and affirmative marketing
•
Increase renter protections
“XXXX”
689
421
441
936
2,487
1,004
570
565
1,151
3,290
1,685
970
1,131
2,927
6,713

VERY LOW
LOW

MODERATE
ABOVE

MODERATE
TOTAL
2007-14
2015-22
2023-31
Regional Housing Needs Allocation
4 th
, 5
th
, and 6
th
cycles
51 Milpitas Housing Element
Sites Inventory Methodology
STEP 1. Identify Likely Sites or Credits
STEP 2. Calculate “Deficit” (Remaining RHNA)
STEP 3. Identify Potential Opportunity Sites
STEP 4. Calculate Buildout
Milpitas City Council Meeting
Item # 22: State Funding Plan
September 20, 2022

2 Background
In March 2022, the City requested one
-
time State funding through
Assemblymember Alex Lee
Request for 3 projects: Cardoza softball fields (up to $7 million), bike lanes facilities enhancement ($1 million), and homelessness prevention and unhoused services ($1.5 million)
On June 27, City received notification of $2.5 million in funding for two of the three requests: bike lanes facilities enhancement and homelessness prevention and unhoused services
Staff is still awaiting details about funding and timelines Staff report and presentation provides details on the funding requests, updates on Council direction and additional funding since March, and provides information for Council consideration and input 3 Bike Lanes Facilities
Enhancement
4 Funding Request ($1,000,000)
In May 2022, the City Council adopted the Trails, Pedestrian, and Bicycle Master Plan
The Master Plan includes recommendations to expand and improve the safety of the City’s bicycle facilities
$750,000 in safety improvements such as b
ike signals, enhanced
intersection bike pavement markings, and bike signage at high -
traffic,
multi
-
lane, and large signalized intersections on bike routes to schools and employment centers
$250,000 in
enhanced pavement markings such as green and buffered
bike lanes and signage as recommended in the adopted Master Plan 5 Homelessness Prevention
and
Unhoused Services
6 Funding Request ($1,500,000)
6 Mobile Shower and Laundry Services ($300,000)
•
Continuation and expansion of the existing program
•
Services to be provided twice a week for three years
Milpitas Day Worker/Resource Center ($500,000)
•
Based on Homelessness Task Force recommendations
•
Two
-
year pilot program
•
Connect day workers to short term jobs from residents and businesses •
Support center with training classes and employment services •
No overnight accommodations
Rent Relief to Vulnerable Milpitas Residents ($700,000) •
Continuation
of existing program
7 Updates since March 2022
7 Mobile Shower and Laundry Services ($300,000 funding request) •
Program is currently funded through January 15, 2023
•
Based on recent data, only one
-
third of users are affiliated with Milpitas, two
thirds are from outside Milpitas
•
Staff will bring back recommendations based on usage data and overall funding needs for those at risk of homelessness or unhoused in Milpitas Milpitas Day Worker/Resource Center ($500,000 funding request) •
Was based on recommendations from the Homelessness Task Force •
Council did not direct staff to move forward with this Task Force recommendation •
If Council wishes to now advance this, staff will need to bring back recommendations for additional resources
8 Updates since March 2022 (contd.)
8 Rent Relief to Vulnerable Milpitas Residents ($700,000 request) •
$200,000 from Affordable Housing Fund used to prevent 40 households and 140 Milpitas residents from potential eviction
•
$669,096 in Community Development Block Grants (CDBG) funding served 240 Milpitas residents in 2020 and 280 residents in 2021
•
$215,297 in competitive grant awards from the Santa Clara County Emergency Food and Shelter Program (EFSP) for rent relief
•
$1,100,000 in American Rescue Plan Act (ARPA) funding for rent and mortgage relief •
To date, of the total $2,184,393 available for rent relief assistance, the City has allocated $964,096 or 44% to families in need
•
Additional funding is anticipated to be available for this program •
State funding requested for this program area could be potentially considered for other programs and services, if allowable under State guidelines 9 Other Programs for Consideration
9 Unhoused Outreach and Assessment
•
$300,000 in funding approved for services through September 2023 •
State funding could be considered for additional years of funding and enhanced services Tiny Homes Village Feasibility Study
•
Council directed staff to move forward on this based on Homelessness Task Force recommendation; study is currently underway
•
State funding could be considered for any recommendations that may be approved for implementation by Council
Potential Program for Employee Housing
•
Milpitas Unified School District has outlined the critical need for housing for MUSD teachers and staff
•
State funding could be considered to explore housing programs to retain MUSD and other employees working in key sectors in Milpitas
Other Programs
•
Examples of programs for other jurisdictions include leasing to locals, ADU incentives with deed restrictions, and regional level housing and services 10 Additional Funding Sources
Regional Early Impact Planning Grant Program (REAP)
•
July 2022 City received an allocation in the amount of $142,718 •
Funding used for Fair Housing Assessment and Housing Element work Permanent Local Housing Allocation (PLHA)
•
Application due in October 2022
•
PLHA funding is flexible and can be used for affordable housing development and to assist persons experiencing or who are at risk of homelessness •
The City of Milpitas entitlement for 2019 and 2020 is $609,445 •
The estimated five
-
year funding (2019
-
2023) for the City of Milpitas is $1,431,570
11 Next Steps and Fiscal Impact
Based on Council input and clarity regarding State funding parameters, staff will bring forward proposals during the next few months
No fiscal impact associated with this report
Once Council provides direction on programs, appropriation action will be incorporated into the FY 2022
-
23 mid
-
year budget
12 Recommendation
Receive presentation and provide feedback on the approved $2.5 Million in State Funding for Bike Lane Facilities Enhancement and Homelessness Prevention and Unhoused Services.

City of Milpitas
455 E. Calaveras Blvd., Milpitas, CA 95035
www.milpitas.gov
408
-
586
-
3000

Item # C7: FY 2021
-
22 4
th
Quarter Financial Status Report
2 •
Unaudited Financial Report for Quarter Ended 6/30/2022
•
General Fund

•
Financial Status Report as of 6/30/2022

•
Reserve Balances Update

•
Unanticipated Expenditure Reserve Report

•
Enterprise Funds

•
Financial Status Report as of 6/30/2022

•
Reserve Balances Update

•
Budget
, Contingency and
Reporting
Recommendations

•
Recommendation
Agenda
3 General Fund
4 General Fund Status

5 General Fund Revenues Summary

6 General Fund Expenditures Summary

1. $3.6M or 3.1% budget variance
–
one
-
me

2. $1.5M due to vacancy savings and CalPERS budgetary savings

3. $2.1M due to non
-
personnel savings (I.e. supplies, services,
etc
)
7 General Fund Reserves
Reserve
Allocation

9 General Fund Reserves
–
Per Policy & Recommendation

10 Unanticipated Expenditure in Q4

11 Utility Funds
12 Water Fund Financial Status
(in millions)
FY 21
-
22 Adopted
Budget
FY 21
-
22 Amended Budget
FY 21
-
22 Status as
of 6/30/2022
FY 21
-
22 Percent
of Amended
Budget
Revenues

31.5 31.5

31.0 98.4%
Expenditures

28.3 28.6

27.2 95.2%
Net Surplus

3.8 13
Sewer Fund Financial Status
(in millions)
FY 21
-
22 Adopted
Budget
FY 21
-
22 Amended Budget
FY 21
-
22 Status as
of 6/30/2022
FY 21
-
22 Percent
of Amended
Budget
Revenues

21.0 21.0

21.7 103.4%
Expenditures

15.1 18.0

13.3 73.8%
Net Surplus

8.4 14
Utility Fund Budget Surplus Allocation

15 FY 2021
-
22 Budget Close
-
out
Amendments
16 Budget Amendment Recommendations

1. Increase Fire General Fund (Fund 100) from Non
-
Departmental (Fund 100) budget by
$1,610,000. The budget variance is due to leave cash out and overtime, especially due to minimum staffing.

Due to the COVID pandemic, FY2021
-
22 overtime had an extraordinary level of backfill for
sick leave and/or family medical leave act (FMLA) leave.

2. Increase Building Safety from Affordable Housing Restricted Fund 216 fund balance by $57,500 due to pending REAP grant reimbursement which is anticipated in next fiscal year.

3. Increase Affordable Housing Restricted Fund 216 grant revenue and appropriation by $62,823 for the REAP grant portion expended and receivable as of 6/30/2022 17 Budget Amendment Recommendations

4. Increase Non
-
Departmental CFD 2008 (Fund 238) budget from Fund 238 fund balance budget by $223.

5. Increase Non
-
Departmental CFD 2008 (Fund 238) budget from Fund 238 fund balance budget by $12,100 for higher utility costs.

6. Increase Community Planning Fund (Fund 214) from Fund 214 fund balance budget by $13,100 due primarily to leave cash out.

7. Increase CP #6132 Sewer Master Plan Update budget by $1,132 from Fund 450 residual cost 18 Policy, Reporting
Alternatives and
Recommendation
19 Reporting Recommendation
•
These quarterly fiscal reports provide a timely update of the City’s general fund and enterprise funds.
•
For fiscal year 2021
-
22, Council requested a status report on the FY22 Council approved budgeted contracts.
•
Staff delivered this
approved budget contracts status
reports monthly through a
process that is fairly time
-
consuming and starting in fiscal year 2022
-
2, Staff
recommends pivoting that time to implementing innovations in various Finance operations and relaying upon existing reporting functions to provide efficient updates, such as these quarterly reports, mid
-
year reports, and budget
development.
20 Recommendations

1. Accept the FY 2021
-
22 Quarterly Financial Status Report for the Quarter
Ending June 30, 2022

2. Approve budget, contingency and reporting recommendations

Milpitas City CouncilSeptember 20, 2022

Milpitas City Council
September 20, 2022