Agenda packet — Milpitas City Council, August 15, 2023 (part 1 of 2)

REGULAR MEETING OF THE MILPITAS

CITY COUNCIL

August 15, 2023 Milpitas City Council Agenda Page 1

AG E N D A
TUESDAY, AUGUST 15, 2023
CITY COUNCIL CHAMBERS, 455 E CALAVERAS BLVD, MILPITAS, CA 6:00 PM (CLOSED SESSION)
7:00 PM (PUBLIC BUSINESS)

For assistance in the following languages, you may call:

Đối với Việt Nam, gọi 408-586-2400
Para sa Tagalog, tumawag sa 408-586-3051
Para español, llame 408-586-3072
The City Council meeting is held in the City Council Chamber at City Hall, 455 E. Calaveras Blvd., Milpitas and via teleconference/Zoom webinar.

You may watch the Council meeting without providing public comment by accessing it via links here.

Meeting shall be livestreamed - Go to:

Facebook: https://www.facebook.com/CityofMilpitas/
YouTube: https://www.milpitas.gov/youtube
Web Streaming: https://www.milpitas.gov/webstreaming

PUBLIC COMMENT INSTRUCTIONS
Oral public comments may be provided live during the City Council meeting in person or by registering for the zoom meeting in advance. To register you will need to provide an email address (not disclosed) and a name. To minimize technical difficulties, please make sure that you have the latest version of the Zoom Application. Below is the link to register for this meeting only:
https://ci-milpitas-ca-gov.zoom.us/webinar/register/WN_pK5INxfSQ4CgyQH16hoM3g After you register a link will be sent to you to join the City Council meeting in order to give your comments. All Zoom meeting attendees who wish to speak must click on the “raise hand” icon when the Mayor calls for public comments. If participating via phone, dial *9 to use the “raise hand” feature, and when called to speak, dial *6 to unmute your phone. Your phone number will be displayed in the live meeting. The Mayor will call speakers by name to address the City Council.

All comments provided shall be limited to three minutes or less as determined by the Mayor. All members of the public will be limited to one comment per agenda item, and one comment for non-agenda items.

NOTE: If a member of the public wishes to share any presentation materials for C ouncil consideration, they must be submitted to the Clerk’s Office by email to [email protected] by 12:00 p.m. on the day of the meeting. No presentations will be accepted in person in the Council Chambers.

MILPITAS CITY COUNCIL CODE OF CONDUCT
 Be respectful and courteous (words, tone, and body language).  Model civility.
 Avoid surprises.
 Praise publicly and criticize privately.
 Focus on the issue, not the person.
 Refrain from using electronic devices while on the Council dais.  Disclose conflicts of interest and affiliations related to agenda items.  Separate governing from campaigning.
 The Council speaks with one voice after making policy on issues.  Respect the line between policy and administration.
 Council will hold one another accountable to comply with this Code of Conduct. 1 August 15, 2023 Milpitas City Council Agenda Page 2

CALL MEETING TO ORDER by Mayor and ROLL CALL by City Clerk (6:00 PM)

ADJOURN TO CLOSED SESSION
(a) PUBLIC EMPLOYEE APPOINTMENT/HIRING
Title: City Manager Recruitment Update
(b) CONFERENCE WITH LEGAL COUNSEL – Anticipated Litigation Significant Exposure to Litigation Pursuant to Government Code Section 54956.9(d)(2) Facts and circumstances related to Claim against the City. (c) CONFERENCE WITH LEGAL COUNSEL--Existing Litigation:

Pursuant to Government Code Section 54956.9(d)(1)
County Sanitation District 2-3, et al. v. City of San Jose, et al., Santa Clara Superior Court Case number 18CV325480, City as a Plaintiff.

CLOSED SESSION ANNOUNCEMENT:

Report on action taken in Closed Session, if required per Government Code Section 54957.1, including the vote or abstention of each member present.

PLEDGE OF ALLEGIANCE
INVOCATION (Councilmember Lien)
PRESENTATIONS (7:05 PM)
 Women’s Equality Day (Proclamation)
 AeroTech Club (Commendation)
 Recognition of Jayceon Carswell and Jayden Petty – USA Jr. Olympics Track & Field Events PUBLIC FORUM (7:15 PM)
Members of the public are invited to speak on any item that does not appear on today’s agenda. Comments will be limited to three minutes or less at the Mayor’s discretion. When called to speak, you are encouraged to state your name for the record.

As an item not listed on the agenda, no action can be taken, however the City Council may instruct the City Manager to place the item on a future meeting agenda.

ANNOUNCEMENT OF CONFLICT OF INTEREST AND CAMPAIGN CONTRIBUTIONS

READING OF THE CITY COUNCIL CODE OF CONDUCT

APPROVAL OF AGENDA
CONSENT CALENDAR (7:20 PM)
Consent calendar items are considered to be routine and will be considered for adoption by one motion. There will be no separate discussion of these items unless a City Councilmember, member of the audience or staff requests the Council to remove an item from (or be added to) the consent calendar. Any person desiring to speak on any item on the consent calendar should ask to have that item removed from the consent calendar.

C1. Receive City Council Calendar of Meetings for August and September 2023 (Staff Contact:

Suzanne Guzzetta, City Clerk, 408-586-3001)
Recommendation: Receive City Council Calendar of Meetings for August and September 2023.

C2. Approve City Council City Council Meeting Minutes of August 8, 2023 (Staff Contact: Suzanne Guzzetta, City Clerk, 408-586-3001)
Recommendation: Approve City Council Special Meeting minutes of August 8, 2023. 2 August 15, 2023 Milpitas City Council Agenda Page 3

C3. Receive the Preview List of Anticipated Items for the Next Regular City Council Meeting (Staff Contact: Suzanne Guzzetta, City Clerk, 408-586-3001)
Recommendation: Receive the list of anticipated agenda items for the next regular City Council meeting.

C4. Receive and Review the List of Agenda Items Requested by City Councilmembers (Staff Contact: Suzanne Guzzetta, City Clerk, 408-586-3001)
Recommendation: Review the list of items that have been requested by City Councilmembers and provide direction to staff as necessary. No substantive discussion about any specific item shall occur and the City Council shall hold all debate about the item until it is scheduled as a full agenda item.

C5. Consider the Recommendation from Mayor Montano for Appointments to City Commissions and Declare an Unscheduled Vacancy (Contact: Mayor Montano, 408-586-3024) Recommendation: (1) Receive the recommendation from Mayor Montano and approve appointments to City Commissions; and (2) Declare an unscheduled vacancy on the Community Advisory Commission and direct the City Clerk to post the notice of unscheduled vacancy.

C6. Approve Report of Actions Taken by the City Manager During the City Council Summer Recess from June 20 through August 8, 2023 (Staff Contact: Ashwini Kantak, Assistant City Manager, 408-586-3056)
Recommendation: Approve report of actions taken by the City Manager during the City Council Summer Recess from June 20 through August 8, 2023.

C7. Authorize and Approve Travel to Sacramento, CA, for Mayor Carmen Montano, Vice Mayor Evelyn Chua, and Acting City Manager Ned Thomas to Attend the League of California Cities Annual Conference and Expo to be Held on September 20-22, 2023, for a Combined Estimated Total Not-to-Exceed Amount of $6,750.00 and Appoint Mayor Carmen Montano as the City’s Voting Delegate and Vice Mayor Evelyn Chua as the City’s Alternate Voting Delegate (Staff Contact: Ashwini Kantak, Assistant City Manager, 408-586-3053) Recommendation: (1) Authorize and approve travel to Sacramento, CA, for Mayor Carmen Montano and Vice Mayor Evelyn Chua to attend the Annual Conference of the League of California Cities scheduled on September 20 – 22, 2023, for a combined estimated total not-to-exceed amount of $4,500.00 budgeted under the Individual Elected Official allocation for Conferences / Meetings / Trainings; (2) Authorize and approve travel to Sacramento, CA, for the Acting City Manager Ned Thomas to attend the Annual Conference of the League of California Cities scheduled on September 20 – 22, 2023, for a total estimated amount of $2,250.00 budgeted under the City Manager’s Office for Conferences / Meetings / Membership; and (3) Appoint Mayor Carmen Montano as the City’s voting delegate and Vice Mayor Evelyn Chua as the alternate voting delegate for the 2023 Annual Conference.

C8. Approve and Authorize the City Manager to Execute a Stormwater Management Facilities Operation and Maintenance Agreement between the City of Milpitas and Alps Lodging 2, Inc. for the Springhill Suites Hotel Project at 1201 Cadillac Ct. (Staff Contact: Roberto Alonzo, Principal Civil Engineer, 408-586-3316)
Recommendation: Approve and authorize the City Manager to execute a Stormwater Management Facilities Operation and Maintenance Agreement between the City of Milpitas and Alps Lodging 2, Inc. for the Springhill Suites Hotel Project at 1201 Cadillac Ct. 3 August 15, 2023 Milpitas City Council Agenda Page 4

C9. Authorize the City Manager to Negotiate and Execute Amendment No. 1 to Master Agreement with Santa Clara Valley Water District for Flood Protection Improvements within Lower Calera Creek, Lower Penitencia Creek, and Lower Berryessa Creek for up to $650,000.00; Authorize Reimbursement to the Santa Clara Valley Water District for City Improvements Completed as part of the Flood Protection Work, Project No. 3452; and Approve Budget Appropriation of $145,692 from the Sewer Infrastructure Replacement Fund, and $505,170.00 from the Water Fund Project No. 7100 Aging Water System/Seismic Improvement into Project No. 3452 (Staff Contact: Matt Cano, Deputy City Manager/Interim City Engineer, 408-586-3012) Recommendation: (1) Authorize the City Manager to negotiate and execute Amendment No. 1 to Master Agreement with Santa Clara Valley Water District for Flood Protection Improvements within Lower Calera Creek, Lower Penitencia Creek, and Lower Berryessa Creek for up to $650,000.00; (2) Authorize reimbursement to the Santa Clara Valley Water District for City improvements completed as part of the Flood Protection Work, Project No. 3452; and (3) Approve budget appropriation of $145,692.00 of the Sewer Infrastructure Replacement Fund, and $505,170.00 from the Water Fund Project No. 7100 Aging Water System/Seismic Improvement into Project No. 3452.

C10. Authorize the Acting City Manager to Execute the Fee Reimbursement Agreement for Transit Area Specific Public Facilities and Public Improvements at the 308 Sango Court Project by Milpitas Pacific Associates, L.P.; and Approve Budget Appropriation in the Amount of $153,000.00 to the Non-Departmental Operating Budget in the TASP Fund (Staff Contact:

Roberto Alonzo, Principal Civil Engineer, 408-586-3316) Recommendation: (1) Authorize the City Manager to execute the Fee Reimbursement Agreement for Transit Area Specific Public Facilities and Public Improvements at the 308 Sango Court Project by Milpitas Pacific Associates, L.P.; and (2) Approve budget appropriation in the amount of $153,000.00 to the non-departmental operating budget in the TASP fund.

C11. Receive and Review the FY 2022-23 Annual Report of Sole Source Contracts (Staff Contact:

Lauren Lai, Finance Director, 408-586-3111)
Recommendation: Receive and review the FY 2022-23 Annual Report of Sole Source Contracts.

C12. Adopt a Resolution Approving the City of Milpitas Investment Policy for Fiscal Year 2023-24 (Staff Contact: Lauren Lai, Finance Director, 408-586-3111) Recommendation: Adopt a resolution of the City of Milpitas approving the Investment Policy for FY 2023-24.

C13. City of Milpitas Mutual Aid Assistance Agreement with City of Fremont (Staff Contact: Jason Schoonover, Fire Chief, 408-586-2811)
Recommendation: Adopt a resolution authorizing the City Manager to execute the Mutual Aid Assistance Agreement with the City of Fremont for Emergency Response Services.

C14. Adopt a Resolution Authorizing the City Manager to Execute Blanket Purchase Orders and Purchase Agreements with National Auto Fleet Group and Mission Valley Ford San Jose for a Combined Amount Not-to-Exceed $1,200,000.00 and Approve Sole Source with Mission Valley Ford San Jose (Staff Contact: Christian Di Renzo, Public Works Director, 408-586-2602) Recommendation: Adopt a resolution authorizing the City Manager to execute blanket purchase orders and purchase agreements with National Auto Fleet Group and Mission Valley Ford San Jose for a combined amount not-to-exceed $1,200,000.00 and execute purchase agreements and approve sole source with Mission Valley Ford San Jose.
4 August 15, 2023 Milpitas City Council Agenda Page 5

C15. Receive an Update on the Emergency Repairs to the HVAC System and Equipment at City Hall and at the Public Works/Information Technology/Police Department Buildings and Determine that the Condition Continues to Constitute an Emergency (Staff Contact: Christian Di Renzo, Public Works Director, 408-586-2602)
Recommendation: (1) Receive an update on the emergency repairs to the HVAC system and equipment at City Hall and at the Public Works/Information Technology/Police Department Buildings; and (2) Determine by a four-fifths vote that the condition continues to constitute an emergency.

C16. Approve Three Youth Advisory Commission 2023 Scholarship Recipients (Staff Contact: Renee Lorentzen, Recreation and Community Services Director, 408-586-3409) Recommendation: Approve three Youth Advisory Commission Community Service Scholarships of $600.00 each for a total amount of $1,800.00.

COMMUNITY DEVELOPMENT (7:30 PM)

17. Receive Staff Report and Presentation; Provide Direction on the Options Related to the Development and/or Disposition of the Parcels Located at 1432–1488 South Main Street (Staff Contact: Ashwini Kantak, Assistant City Manager, 408-586-3053) Recommendation: Receive staff report and presentation; provide direction on purchase of 1432-1446 S. Main Street (Parcel 1) from the Housing Authority, and on options related to the parcels located at 1452-1488 S. Main Street (Parcels 2 and 3).

COMMUNITY SERVICES AND SUSTAINABLE INFRASTRUCTURE (9:00 PM)

18. Receive Report from the Convention on the Elimination of All Forms of Discrimination Against Women (CEDAW) Community Task Force (Staff Contact: Renee Lorentzen, Recreation and Community Services Director, 408-586-3409)
Recommendation: (1) Receive a report with the recommendations from the CEDAW Task Force; and (2) Consider the need for additional work by the CEDAW Task Force, or provide direction to sunset the Task Force on August 31, 2023.

ANNOUNCEMENTS AND FUTURE AGENDA ITEMS (9:30 PM)
Members of the City Council or City Manager may make brief announcements at this time. Members of the City Council may also suggest future agenda items. For future agenda items, the City Council shall not debate the topic or engage in discussion but shall simply state a “yes” or “no” as whether to move the item forward. If a majority of the City Council agrees to move the item forward, the City Manager shall place the item on a future agenda.

ADJOURNMENT (9:35 PM)

KNOW YOUR RIGHTS UNDER THE OPEN GOVERNMENT ORDINANCE
Government’s duty is to serve the public, reaching its decisions in full view of the public. Commissions and other City agencies exist to conduct the people’s business. This ordinance assures that deliberations are conducted before the people and City operations are open to the people’s review. For more information on your rights under the Open Government Ordinance or to report a violation, contact the City Attorney’s office at Milpitas City Hall, 455 E. Calaveras Blvd., Milpitas, CA 95035 e-mail:[email protected] / Phone: 408-586-3040

The Open Government Ordinance is codified in the Milpitas Municipal Code as Title I Chapter 310 and is available online at the City’s website www.milpitas.gov by selecting the Milpitas Municipal Code link.

5 August 15, 2023 Milpitas City Council Agenda Page 6

Materials related to an item on this agenda submitted to the City Council after initial distribution of the agenda packet are available for public inspection at the City Clerk’s office at Milpitas City Hall, 3rd floor 455 E. Calaveras Blvd., Milpitas and on City website. City Council agendas and related materials can be viewed online: www.milpitas.gov/government/council/agenda_minutes.asp (select meeting date)

APPLY TO SERVE ON A CITY COMMISSION
Commission application forms are available online at www.milpitas.gov or at Milpitas City Hall.

Contact the City Clerk’s Office at 408-586-3001 for more information.

If you need assistance, per the Americans with Disabilities Act, for any City of Milpitas public meeting, please call the City Clerk at 408-586-3001 or send an e-mail to [email protected] prior to the meeting. You may request a larger font agenda.

6 Milpitas City Council Calendar
August 2023

Sunday Monday Tuesday Wednesday Thursday Friday Saturday

1 6:00 PM-National Night Out Citywide
Neighborhoods Events

2 1:00 PM-Santa Clara VTA Monthly
Briefing - Northeast Group (CM)
(Santa Clara)
5:30 PM-Veterans Commission (CM)
7:00 PM-Community Advisory
Commission (EC)

3 5:30 PM-Milpitas Chamber of
Commerce Board (GB)
5:30 PM-Santa Clara VTA Board of
Directors (CM)
6:00 PM- Pulte Homes
EIR/Community Meeting

4 5

6 7

8 5:30 PM-Special Council Meeting

9 7:00 PM-Silicon Valley Clean Energy
Board of Directors (EC) (Cupertino)

10 4:00 PM-Santa Clara VTA Policy
Advisory Committee (EC)
5:30 PM-Cities Assoc of SCC
Legislative Action Committee (CM)
6:00 PM-Youth Advisory Commission
(HL)
7:00 PM-Cities Assoc of SCC Board of
Directors (CM)

11 12

13 14
4:30 PM-Economic Development and
Trade Commission (CM)

15 6:00 PM-Closed Session
7:00 PM-City Council

16 4:00 PM-City Council Housing
Subcommittee (CM/EC)
6:00 PM-Energy and Environmental
Sustainability Commission (EC)
6:30 PM-Flag Raising Event: Indian
Independence Day Celebration (Cesar
Chavez Plaza)

17 10:00 AM-VTA Congestion Mgmt Prog
and Planning Committee (CM)
3:00 PM-VTA Safety, Security, and
Transit Planning & Operations
Committee (CM) [San Jose]

18 19

20 21
Tent: 3:00 PM-1000 Hillview Court
Stakeholder Group Meeting [location
tbd]

22 1:30 PM-Senior Advisory Commission
(CM)
6:00PM- Zoning Update Community
Workshop (Virtual)

23 12:00 PM-SC Valley Water
Commission (CM)
4:30 PM-City Council Transportation
Subcommittee (CM/EC)
7:00 PM-Planning Commission

24 11:00 AM-City Council Finance
Subcommittee (CM/EC)
1:30 PM-Emergency Operational Area
Council Meeting (CM) [San Jose]
6:00 PM- Zoning Advisory Group
25 26

27 28

29 Tent: 5:30 PM-Special City Council
Meeting – Council Handbook (location
TBD)
30 6:00 PM- Planning Commission
Special Meeting
31 July 2023

S M T W T F S
1 2 3 4 5 6 7 8
9 10 11 12 13 14 15
16 17 18 19 20 21 22
23 24 25 26 27 28 29
30 31
September 2023

S M T W T F S
1 2
3 4 5 6 7 8 9
10 11 12 13 14 15 16
17 18 19 20 21 22 23
24 25 26 27 28 29 30

7 Item # C1.

MILPITAS CITY COUNCIL CALENDAR
September 2023

Sunday Monday Tuesday Wednesday Thursday Friday Saturday

1 2

3 4

CITY HOLIDAY
City Hall Closed

5 6:00 PM-Closed Session
7:00 PM-City Council

6 2:00 PM-Santa Clara VTA Monthly
Briefing - Northeast Group (CM)
(Santa Clara)
5:30 PM-Veterans Commission (CM)
7:00 PM-Community Advisory
Commission (EC)

7 5:30 PM-Santa Clara VTA Board of
Directors (CM)
5:30 PM-Milpitas Chamber of
Commerce Board (GB)
5:30 PM-Cities Association of SCC:

Legislative Action Committee (CM)
7:00 PM-Cities Association of SCC:

Board of Directors (CM)

8 9

10 11
4:30 PM-Economic Development and
Trade Commission (CM)

12 13
4:30 PM-City Council Finance
Subcommittee (CM/EC)
7:00 PM-Planning Commission
7:00 PM-Silicon Valley Clean Energy
Board of Directors (EC) (Cupertino)

14 Tent: Special Council Meeting
[time and location tbd]
4:00 PM-Santa Clara VTA Policy
Advisory Committee (EC)
4:00 PM-Treatment Plant Advisory
Committee (CM) (San Jose)
6:00 PM-Youth Advisory Commission
(HL)
15 Tent: Special Council Meeting
[time and location tbd]

16 17

18 7:00 PM-Science, Technology, and
Innovation Commission (GB)
7:00 PM-Library and Education
Commission (EC) (Milpitas Public
Library)

19 5:00 PM-Closed Session
7:00 PM-City Council

20 6:00 PM-Energy and Environmental
Sustainability Commission (EC)

21 6:30 PM-Bay Area Water Supply
Conserv Agency (CM) (Oak Room -
San Mateo Main Library)
7:00 PM-Public Safety and
Emergency Preparedness Commission
(HL)

22 23

24 25
7:00 PM-Arts Commission (EC)

26 27
7:00 PM-Planning Commission

28 29

30 October 2023

S M T W T F S
1 2 3 4 5 6 7
8 9 10 11 12 13 14
15 16 17 18 19 20 21
22 23 24 25 26 27 28
29 30 31

August 2023

S M T W T F S
1 2 3 4 5
6 7 8 9 10 11 12
13 14 15 16 17 18 19
20 21 22 23 24 25 26
27 28 29 30 31

8 Item # C1.

SPECIAL MEETING OF THE

MILPITAS CITY COUNCIL

August 8, 2023 Milpitas City Council Minutes Page 1

M I NU TE S
TUESDAY, AUGUST 8, 2023

The City Council of the City of Milpitas convened in a Special Meeting of the Milpitas City Council on August 8 2023, in the City Hall Council Chamber, 455 E. Calaveras Blvd, Milpitas, CA, and via teleconference/ Zoom webinar.

CALL MEETING TO ORDER by Mayor and ROLL CALL by City Clerk Mayor Montano called the meeting to order at 5:31 PM. Roll Call was taken by City Clerk Guzzetta.

PRESENT: Mayor Montano, Vice Mayor Chua, Councilmembers Barbadillo, Lien and Phan.

ABSENT: None.

Councilmember Garry Barbadillo participated remotely from 5329 Thunder Ridge Circle, Rockling, CA 95765, pursuant to California Government Code Section 54953.

City Attorney Mutalipassi announced the closed session items.

The City Council adjourned to Closed Session at 5:34 PM.

ADJOURN TO CLOSED SESSION
(a) CONFERENCE WITH LABOR NEGOTIATORS
Pursuant to Government Code Section 54957.6
Agency designated representative: Nick Raisch, Human Resources Director Bargaining unit: LIUNA, UPEC (Pro-Tech, MEA, MidCon), IAFF, MPOA (b) CONFERENCE WITH LEGAL COUNSEL--Existing Litigation:

Pursuant to Government Code Section 54956.9(d)(1)
County Sanitation District 2-3, et al. v. City of San Jose, et al., Santa Clara Superior Court Case number 18CV325480, City as a Plaintiff.
(c) CONFERENCE WITH LEGAL COUNSEL—Existing Litigation
Pursuant to Government Code section 54956.9(d)(1)
Alok Jain, et al. v. City of Milpitas, et al., Santa Clara Superior Court case number 18CV325365 City as Defendant
The City Council reconvened in open session at 6:54 PM.

CLOSED SESSION ANNOUNCEMENT:

City Attorney Mutalipassi announced there was nothing to report.

PLEDGE OF ALLEGIANCE
Mayor Montano led the Pledge of Allegiance.

INVOCATION
Councilmember Lien presented the invocation.
9 Item # C2.

August 8, 2023 Milpitas City Council Minutes Page 2

PRESENTATIONS
Mayor Montano presented a proclamation in recognition of "American Muslim Appreciation and Awareness Month" and, joined by the City Council, presented Certificates of Appreciation to participants in the Main Street Graffiti Clean-Up Event.

PUBLIC FORUM
There were the following public speakers:

1. Joseph Weinstein

2. Voltaire Montemayor

ANNOUNCEMENT OF CONFLICT OF INTEREST AND CAMPAIGN CONTRIBUTIONS City Attorney Mutalipassi asked the Mayor and City Councilmembers if they had any personal conflicts of interest. By roll call, there were no conflicts of interest. City Attorney Mutalipassi asked the Mayor and City Councilmembers if they had any reportable campaign contributions. By roll call, there were no reportable campaign contributions.

READING OF THE CITY COUNCIL CODE OF CONDUCT
Mayor Montano read the Code of Conduct.

APPROVAL OF AGENDA
Motion: to approve the August 8, 2023 Special Meeting Agenda.

Motion/Second: Vice Mayor Chua / Councilmember Lien
Motion carried by the following:

AYES: Councilmembers Barbadillo, Lien, Phan, Vice Mayor Chua, and Mayor Montano NOES: None

CONSENT CALENDAR
Motion: to approve the Consent Calendar, pulling Items C2 and C7 Motion/Second: Vice Mayor Chua / Councilmember Barbadillo Motion carried by the following:

AYES: Councilmembers Barbadillo, Lien, Phan, Vice Mayor Chua, and Mayor Montano NOES: None

There were no public speakers.

1. Receive City Council Calendar of Meetings for August 2023 (Staff Contact: Suzanne Guzzetta, City Clerk, 408-586-3001)
Received the City Council Calendar of Meetings for August 2023.

2. Approve City Council City Council Meeting Minutes of June 20, 2023 (Staff Contact: Suzanne Guzzetta, City Clerk, 408-586-3001)
Pulled from Consent Calendar.

10 Item # C2.

August 8, 2023 Milpitas City Council Minutes Page 3

3. Receive the Preview List of Anticipated Items for the Next Regular City Council Meeting (Staff Contact: Suzanne Guzzetta, City Clerk, 408-586-3001)
Received the list of anticipated agenda items for the next regular City Council meeting.

4. Receive and Review the List of Agenda Items Requested by City Councilmembers (Staff Contact: Suzanne Guzzetta, City Clerk, 408-586-3001)
Reviewed the list of items that have been requested by City Councilmembers and provided direction to staff as necessary.

5. Accept Commissioner Resignations (Staff Contact: Suzanne Guzzetta, City Clerk, 408-586-3001) Accepted the resignations of Rachel Plummer and Natalie Chen from the Youth Advisory Commission, Jose Rosario and Mike Bilbao from the Community Advisory Commission, Paul Medawar from the Economic Development and Trade Commission, and Chris Salian and Vikash Venkataramana from the Energy and Environmental Sustainability Commission; and directed the City Clerk to post the notice of unscheduled vacancies.

6. American Rescue Plan Act (ARPA) Workforce Development Program Funding (Staff Contact:

Alex Andrade, Economic Development Director, 408-586-3046; and Margaret Tamisiea, Senior Special Projects Associate, 408-586-3047)
Approved an American Rescue Plan Act (ARPA) Workforce Development grant in the amount of $44,720.00 for SEMI Foundation to support hands-on learning using Science, Technology, Engineering, and Mathematics (STEM) Kits benefitting local youth in workforce development and education services.

7. Approve and Execute Amendments to the Funding Agreement with the Santa Clara Valley Transportation Authority (VTA) and Subscription and Services Agreement with RideCo for Milpitas SMART (Staff Contact: Jay Lee, Interim Planning Director, 408-586-3077) Pulled from Consent Calendar.

PUBLIC HEARINGS

8. 2023 Weed Abatement Assessments Public Hearing and Adopt a Resolution to Confirm the Assessment Report (Staff Contact: Arthur Belton, Deputy Fire Chief / Fire Marshal, 408-586- 3384)
Deputy Fire Chief / Fire Marshal Belton presented the report.

Mayor Montano opened the public hearing.

There were the following public speakers:

1. Voltaire Montemayor

Mayor Montano closed the public hearing.

Deputy Fire Chief / Fire Marshal Belton responded to questions from the City Council.

After discussion, motion: to adopt a Resolution No. 9266 confirming the 2023 Weed Abatement Assessment Report and the assessment list to be entered into the tax assessment rolls.

11 Item # C2.

August 8, 2023 Milpitas City Council Minutes Page 4

Motion/Second: Vice Mayor Chua / Councilmember Barbadillo Motion carried by the following:

AYES: Councilmembers Barbadillo, Lien and Phan, Vice Mayor Chua, and Mayor Montano NOES: None

ITEMS PULLED FROM CONSENT CALENDAR
C7. Approve and Execute Amendments to the Funding Agreement with the Santa Clara Valley Transportation Authority (VTA) and Subscription and Services Agreement with RideCo for Milpitas SMART (Staff Contact: Jay Lee, Interim Planning Director, 408-586-3077) Recommendation: (1) Approve amendments to the funding agreement with the Santa Clara Valley Transportation Authority (VTA) and subscription and services agreement with RideCo for Milpitas SMART related to changing the program from a hub-and-spoke to a point-to-point service model; and (2) Authorize the City Manager to execute the amended agreements.

Acting City Manager Thomas introduced the item. Interim Planning Director Lee presented the report and responded to questions from the City Council.

Vice Mayor Chua asked for staff to look into extending service hours, explore options for free ridership including cost to the city and how it would be funded, and to include that information with the Milpitas SMART presentation scheduled for September.

There were the following public speakers:

1. Voltaire Montemayor

After discussion, motion: to approve amendments to the funding agreement with the Santa Clara Valley Transportation Authority (VTA) and subscription and services agreement with RideCo for Milpitas SMART related to changing the program from a hub-and-spoke to a point-to-point service model; and to authorize the City Manager to execute the amended agreements.

Motion/Second: Councilmember Lien / Vice Mayor Chua
Motion carried by the following:

AYES: Councilmembers Barbadillo, Lien and Phan, Vice Mayor Chua, and Mayor Montano NOES: None

C2. Approve City Council Meeting Minutes of June 20, 2023 (Staff Contact: Suzanne Guzzetta, City Clerk, 408-586-3001)
Councilmember Phan asked that the consensus polled for future agenda items more clearly reflect the decision made in the meeting minutes.

After discussion, motion: to approve City Council meeting minutes of June 20, 2023.

Motion/Second: Councilmember Lien / Vice Mayor Chua
Motion carried by the following:

AYES: Councilmembers Barbadillo, Lien and Phan, Vice Mayor Chua, and Mayor Montano NOES: None

ANNOUNCEMENTS AND FUTURE AGENDA ITEMS
Vice Mayor Chua congratulated staff for the success of the Retro Milpitas event. She asked that Acting City Manager Thomas look into the former Teen Center building at the Sports Center and what it would take to convert it to an indoor pickleball court. By unanimous consensus, the item was approved to move forward. 12 Item # C2.

August 8, 2023 Milpitas City Council Minutes Page 5

Councilmember Lien asked to agendize a closed session item to discuss the claim of the former Milpitas City Manager. Acting City Manager Thomas noted that the item is currently scheduled for a Closed Session discussion at the next Council meeting.

Mayor Montano also recognized the Retro Milpitas event.

Councilmember Barbadillo asked for staff to ensure that the discussion of the claim for the former Milpitas City Manager appears on the next agenda per Councilmember Lien’s request and Acting City Manager Thomas’ response.

ADJOURNMENT
Mayor Montano adjourned the meeting at 8:13 PM.

Draft meeting minutes submitted by City Clerk, Suzanne Guzzetta

13 Item # C2.

TENTATIVE CITY COUNCIL AGENDA ITEM LIST
as of 8/10/2023

September 5, 2023 – Regular Meeting

CLOSED SESSION
 Labor Relations

INVOCATION (Councilmember Barbadillo)

PRESENTATION
 National Suicide Prevention Week (Proclamation)
 National Preparedness Month (Proclamation)

CONSENT CALENDAR

1. Receive City Council calendar for September 2023 (City Clerk)

2. Approve City Council Meeting minutes of August 15, 2023 and August 29, 2023 (City Clerk)

3. Preview list of items for September 19, 2023 (City Clerk)

4. Councilmember Request List (City Clerk)

5. Commission Appointments (City Clerk)

6. Operations & Maintenance Agreement for 355 Sango Court (Engineering)

7. Trail Maintenance Agreement for 355 Sango Court (Engineering)

8. Landscape Maintenance Agreement for 355 Sango Court (Engineering)

9. Report on Emergency HVAC Repairs (Public Works)

PUBLIC HEARINGS

10. Consolidated Action Plan Evaluation Report (CAPER) (Housing)

COMMUNITY DEVELOPMENT

11. Milpitas SMART Discussion (City Manager and Planning)

12. Permanent Local Housing Allocation and State Housing Funds (Housing)

14 Item # C3.

MILPITAS CITY COUNCIL

AGENDA ITEM REQUESTS
Request
No. Topic Submitted by:

Date
Requested
STATUS and/or DATE scheduled on City
Council meeting agenda:
1 Look into what would be needed to convert the
unused Teen Center space at the Sports Center to
an indoor pickleball court. Chua 8/8/2023
This item will be preliminarily reviewed by the
City Manager's Office in August 2023. Any
potential next steps will be determined
following this preliminary review.
2 At the next Council meeting, to bring back the
ARPA Workforce Development Program funded
STEM kits for consideration. Montano 6/20/2023
Approved by City Council at the August 8,
2023 meeting.
3 Consider a Safe Parking Program to find
businesses and churches that would allow the
unhoused to sleep in their cars and vans Montano 6/20/2023 This item will be discussed at the next
Council prioritization meeting.

Request
No. Topic Submitted by:

Date
Requested
STATUS and/or DATE scheduled on City
Council meeting agenda:
4 Human Resources Director to conduct a job fair
specific to the job openings at City Hall Chua 5/2/2023 June 2023 update: Staff is evaluating
synergies with existing Economic
Devlopemnt activities and endeavors to
which recruiting efforts can be incorporated
and creates space for multiple events
throughout the year increasing overall
exposure to local talent
5 Satellite Consulate Office Montano 2/28/2023
Approved to move forward at the June 2023
Quarterly City Council Workplan Items
Prioritization Session on 6/20/23.
6 Have the City look into the possibility of a Citywide Senior Discount Barbadillo 2/7/2023
Approved to move forward at the June 2023
Quarterly City Council Workplan Items
Prioritization Session on 6/20/23.
7 City Manager to look into defining either a
standalone teen center or updating information to
indicate the Senior Center also functions as a Teen
Center Chua 9/20/2022
June 2023 update: A Teen Center Survey
has been released and is currently gathering
responses. It is anticipated that data on the
use of the center and/or its programs relative
to it's proximity to home and/or school, and
the type of programming desired will provide
the input needed for the resolution to this
request. Discussed at February 2023
Quarterly City Council Workplan Items
Prioritization Discussion; Approved to move
forward during Prioritization Discussion on
2/7/23.

OPEN ITEMS

ACTIVE ITEMS
NOTE: Deferred and Completed Items are not listed15
Item # C4.

MILPITAS CITY COUNCIL

AGENDA ITEM REQUESTS
Request
No. Topic Submitted by:

Date
Requested
STATUS and/or DATE scheduled on City
Council meeting agenda:

ACTIVE ITEMS
8 Discuss converting vacant lot that was a basketball
court into a community garden at Vasona and
Adobe Montano 8/16/2022
Staff conducted a survey of residents within
an 800 foot radius from Adobe Ave., asking
for feedback on potential recreational
improvements to the area. Notification was
sent via postcard to individual homes,
NextDoor, Facebook, and Instagram. The
survey was out for 3 weeks and 43 responses
were received. Of those received, 16
identified themselves as living in the Adobe
Ave/Vasona St. Neighborhood. The majority
of residents currently use Adobe Ave to walk
to school (Curtner Elementary) and as a
pedestrian trail for fitness. Survey takers
responded most favorably to turning the area
into a parklet with some benches and
greenery, followed by interest in a community
garden. Residents indicated some concern
over new uses of the area creating a noise
and loitering issue in the neighborhood.

Staff will present consolidate responses to
the Mayor and City Council to receive further
direction at the September 2023 priority
setting meeting.
9 City Manager look into implementing a workshop for
small businesses on the bidding process for
projects in the city Chua 8/9/2022
June 2023 update: Staff was scheduled to
provide a report to the Economic
Development and Trade Commission on
June 12, 2023 however that meeting with
postoned due to lack of quorum. Staff will
present to the Commission in August 2023.

Further analysis on options and alternatives
to connect more local and local small City of
Milpitas businesses to our procurement
processes will continue through 2023.

Discussed at February 2023 Quarterly City
Council Workplan Items Prioritization
Discussion; Approved to move forward during
Prioritization Discussion on 2/7/23
10 Quarterly or Monthly crime statistics on Homekey
Project Chua 6/7/2022 Quarterly reports to City Council are ongoing. 11 Memorial Plaque in honor of youth skateboarder
that passed away Montano 6/7/2022
This request was approved as part of the
FY23-24 Budget. Staff will begin working with
the family in Fall 2023.
12 Funding to hire a consultant for the Sunnyhills
Historical Designation on a state level Tran 6/7/2022
Based on staff research, the best way to try
for a Historical District Designation is at the
National Level. This can be wrapped into the
approved CIP for the Historical Resources
Plan update or through grant consultant
California Consulting. Request will be
included with the Historic Resources Master
Plan project approved as part of the 2023-
2027 Capital Improvement Program.

NOTE: Deferred and Completed Items are not listed16
Item # C4.

MILPITAS CITY COUNCIL

AGENDA ITEM REQUESTS
Request
No. Topic Submitted by:

Date
Requested
STATUS and/or DATE scheduled on City
Council meeting agenda:

ACTIVE ITEMS
13 Explore the policy for locking mechanisms on
shopping carts for large commercial businesses Tran 4/19/2022 June 2023 update: No change in status.

Prior updates: MMC V-13-140 Mandatory
Plan to Prevent Cart Removal includes
requirement for physical measures to prevent
cart removal however V-13-120 provides an
exemption for cart owner that agrees to enter
into a contract with a City-designated retrieval
service. Staff suggestion to Council is to
review this exemption and repeal it which
would require all cart owners to have physical
measures to prevent cart removal. Business
outreach was conducted to grocery store
operators in Q2 of 2022 to inquire about
shopping cart removal and theft. Grocery
stores contacted were Ocean Supermarket,
Seafood City Supermarket, Chung Chou City,
Milpitas Grocery Outlet, and 99 Ranch
Market.
14 Explore an ordinance or policy to reduce thefts and
increase security in the commercial retail parking
areas Chua 4/5/2022
June 2023 update: Security measures can
be mandated for new or renevating
development projects but cannot be
mandated for existing businesses. The Police
Department has taken action to partner with
existing businesses, including McCarthy
Ranch and the shopping center at Barber
Lane with regard to educaton and deterance,
including placement of signage and cameras.
15 Request for Crossing Guards at McCandless and
Montague Expressway and review wages for
Crossing Guards Montano 4/5/2022
Info Memos were sent to the City Council on
6/13/2022 and 1/27/2023. At the January 31st
budget study session, Council voted to move
to a contract model; Staff is in the middle of a
citywide traffic study, which includes school
aged pedestrian counts around schools in the
City including the McCandless and Montague
Expressway intersection.
16 Evaluate reopening the childcare center with a non-
profit organization running the center Montano 2/1/2022 No additional funds required to complete the
internal review. Internal review can be done
by late 2023. Approved during Spring
Quarterly City Council Workplan Items
Prioritization Discussion on 5/03/2022.
17 Requested an appropriation in an amount not to
exceed $250,000 to procure a contract to address
the streetlights that are pending fieldwork. Tran 2/1/2022 At this time, staff has sufficient Council
approved resources to address the remaining
streetlight outages; however, will bring
relevant actions for Council consideration, if
needed.
18 Staff to look into mural Art on Great Mall Parkway
on the VTA owned Light rail pillars Montano 11/16/2021
Staff has identified a potential location on
Great Mall Parkway and is solidifying the
workplan for installation.

NOTE: Deferred and Completed Items are not listed17
Item # C4.

MILPITAS CITY COUNCIL

AGENDA ITEM REQUESTS
Request
No. Topic Submitted by:

Date
Requested
STATUS and/or DATE scheduled on City
Council meeting agenda:

ACTIVE ITEMS
19 Request for the City to make the temporary third-
party food deliver fee caps permanent and add
additional provisions for enforcement Phan 11/16/2021
June 2023 update: The City Attorney's Office
has prepared a confidential memorandum
regarding potential legal issues and
implementation of a food delivery cap. As
stated in that memorandum, should the
Council wish to move forward with a cap, the
next step will be to authorize the retention of
a consultant to determine if a factual basis
exists to support the need for a further food
delivery cap.
20 Have a picture of Albert Vogel Sr. put up in the
Senior Center Montano 10/19/2021
June 2023 update: The approved CC request
included to add Maria Lemery and Albert
Vogel to the Mural at the Senior Center. Staff
has spoken to the artist and confirmed that
additional images would not fit with the
existing piece. However, due to the location
of the current mural, additional mural panels
featuring additional people could be added to
the senior center entry way. Staff received
interest from Mayor Montano to add Joanne
Sousa to this request.
21 Include a bust of Maria Lemire on the Mural in front of the Senior Center Montano 8/17/2021
June 2023 update: The approved CC request
included to add Maria Lemery and Albert
Vogel to the Mural at the Senior Center. Staff
has spoken to the artist and confirmed that
additional images would not fit with the
existing piece. However, due to the location
of the current mural, additional mural panels
22 Staff to create a plan on how to increase the
number of local businesses doing business with the
City Chua 4/6/2021
Staff is tracking this local business
participation item as part of Council Priority
Item 3 in Group 1 on this list; At 8/9/2021
Council meeting, Council voted that this item
may have to come back for additional
discussion because there may be some legal
considerations.
23 Staff to provide information on a landmark policy for the City of Milpitas Tran 3/16/2021
June 2023 update: Request is being
included with the Historic Resources Master
Plan project approved as part of the 2023-
2027 Capital Improvement Program.
24 Amendment to the existing ordinance for third-party
food delivery vendor services to prohibit regulatory
response fees Phan 2/16/2021
June 2023 update: The City Attorney's Office
has prepared a confidential memorandum
regarding potential legal issues and
implementation of a food delivery cap. As
stated in that memorandum, should the
Council wish to move forward with a cap, the
next step will be to authorize the retention of
a consultant to determine if a factual basis
exists to support the need for a further food
delivery cap.
25 Consider Community Museum and Park on Main St. Phan 8/20/2019 to Rules Subcommittee 8/23/2019. Moved to
Specific Plan Community Conversation
events.

NOTE: Deferred and Completed Items are not listed18
Item # C4.

CITY OF MILPITAS

AGENDA REPORT
(AR)

Item Title: Consider the Recommendation from Mayor Montano for Appointments to City Commissions and Declare an Unscheduled Vacancy (Contact: Mayor Montano, 408-586-3024)
Category: Consent Calendar-Leadership and Support Services Meeting Date: 5/16/2023
Recommendation: (1) Receive the recommendation from Mayor Montano and approve appointments to City Commissions; and (2) Declare an unscheduled vacancy on the Community Advisory Commission and direct the City Clerk to post the notice of unscheduled vacancy.

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 her 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 Montano’s appointments are as follows:

Arts Commission

1. Appoint America Yulissa Chiuapilli Irineo as a non-voting student member (CHHS) with a term ending October 2026

Library and Education Advisory Commission

1. Reappoint Hellie Mateo to a term ending June 2026

2. Reappoint Ann Anderson to a term ending June 2026

Parks, Recreation and Cultural Resources Commission

1. Appoint Raghu Reddy to a term ending June 2026

Public Safety and Emergency Preparedness Commission

1. Reappoint Rosana Cacao as Alternate No. 2 with a term ending June 2026

2. Appoint Vienna Sun as a non-voting student member with a term ending June 2026

Veterans Commission

1. Appoint Connor Long as a non-voting student member with a term ending February 2025

All recommended Commissioner appointments will be reviewed and confirmed by the City Clerk’s office. 19 Item # C5.

According to the Commissioner Handbook, commissioners may only serve on one City of Milpitas Commission. The appointment of Raghu Reddy to the Parks, Recreation and Cultural Resources Commission leaves a vacancy on the Community Advisory Commission for an alternate member.

Fiscal Impact:

There is no fiscal impact associated with this item.

Recommendation:
(1) Receive the recommendation from Mayor Montano and approve appointments to City Commissions; and (2) Declare an unscheduled vacancy on the Community Advisory Commission and direct the City Clerk to post the notice of unscheduled vacancy.

Attachments:

1. Commission Applications
20 Item # C5.
21 Item # C5.

From: Ann Anderson
To: Suzanne Guzzetta
Subject: Re: Library and Education Advisory Commission - term ending Date: Wednesday, May 3, 2023 6:36:55 AM
Attachments: image003.png
image004.png
image001.png
image002.png
CAUTION: EXTERNAL SENDER
This email originated from outside the organization. Do NOT click links or open attachments unless you recognize the sender and know the content is safe. Report suspicious messages to the IT Helpdesk. yes, I would like to be reappointed to the library commission. Thank you. Ann On Tuesday, May 2, 2023 at 10:13:42 AM PDT, Suzanne Guzzetta <[email protected]> wrote:

Good Morning Ann,

Your current term with the Library and Education Advisory Commission ends in June 2023. Please let me know if you would like to be considered for reappointment to the Commission. The Mayor will likely make her recommendations either at the end of May or early June.

Thank you,

Suzanne Guzzetta, CMC
City Clerk
Phone (408) 586-3001
Email [email protected]
455 E. Calaveras Blvd., Milpitas CA 95035
www.milpitas.gov

22 Item # C5.

From: Carmen Montano
To: Suzanne Guzzetta
Subject: Fwd: Application for the Library and Education Advisory Commission Date: Thursday, August 10, 2023 7:37:28 PM
Sent from my iPad
Begin forwarded message:

From: hellie mateo <
Date: August 10, 2023 at 5:26:57 PM PDT
To: Carmen Montano <[email protected]>
Subject: Re: Application for the Library and Education Advisory Commission
CAUTION: EXTERNAL SENDER
This email originated from outside the organization. Do NOT click links or open attachments unless you recognize the sender and know the content is safe. Report suspicious messages to the IT Helpdesk.

Dear Mayor Montano,
After having served for 10 years as commissioner of the City's Library and Education Advisory Commission (LEAC), I wish to apply for reinstatement for the next term. Please consider me for the position. My goal is to be involved more actively in the LEAC's projects/programs as my way of serving our city which has been home to me and my family for the last 25 years. Thank you very much for
your support and vote of confidence.

Sincerely,
Hellie N. Mateo
On Thu, Aug 10, 2023 at 5:17 PM Carmen Montano <
[email protected]>
wrote:

HI Hellie
YOU did not miss the deadline.

Just send me a short email stating you wish to be reinstated to the library commission so I can forward it to the city clerk.

Please do so today.

Thank you,
Mayor Montano
Sent from my iPad
23 Item # C5.
> On Aug 10, 2023, at 5:04 PM, hellie mateo wrote:
>
> CAUTION: EXTERNAL SENDER
> This email originated from outside the organization. Do NOT click links or open attachments unless you recognize the sender and know the content is safe.

Report suspicious messages to the IT Helpdesk.
>
>
> Dear Mayor Montano,
>
> Thank you very much for reaching out to me personally about the LEAC position. I sincerely apologize for missing the deadline to apply for reinstatement. I hope to still be considered for the position. After working as a commissioner for the last 10 years, I feel more connected with the community now more than ever and would love to continue serving in the same capacity. >
> I filled out the online application and wish to be considered again for the position, as it’s been an honor working with the group and the City leadership, including yourself, Vice Mayor Evelyn Chua, and John Macon, among others. >
> With my warmest regards.
>
> Your public servant,
>
>
> Hellie N. Mateo
24 Item # C5.
25 Item # C5.

From: Rosana Ramelb
To: Suzanne Guzzetta; Rosana Cacao
Cc: Toni-Lynn Charlop
Subject: Re: Public Safety and Emergency Preparedness Commission - term ending Date: Tuesday, May 2, 2023 2:54:20 PM
Attachments: image001.png
image004.png
image003.png
image002.png
CAUTION: EXTERNAL SENDER
This email originated from outside the organization. Do NOT click links or open attachments unless you recognize the sender and know the content is safe. Report suspicious messages to the IT Helpdesk.

Yes I’d like to stay on the Commission.

Thank you
Sent from Yahoo Mail for iPhone
On Tuesday, May 2, 2023, 10:48 AM, Suzanne Guzzetta <[email protected]> wrote:

Good Morning Rosana,

Your current term with the Milpitas Public Safety and Emergency Preparedness Commission ends in June 2023. Please let me know if you would like to be considered for reappointment to the Commission. The Mayor will likely make her recommendations either at the end of May or early June.

Thank you,

Suzanne Guzzetta, CMC
City Clerk
Phone (408) 586-3001
Email [email protected]
455 E. Calaveras Blvd., Milpitas CA 95035
www.milpitas.gov

26 Item # C5.
27 Item # C5.
28 Item # C5.

CITY OF MILPITAS

AGENDA REPORT
(AR)

Item Title: Approve Report of Actions Taken by the City Manager During the City Council Summer Recess from June 20 through August 8, 2023 (Staff Contact: Ashwini Kantak, Assistant City Manager, 408-586-3056)
Category: Consent Calendar-Leadership and Support Services

Meeting Date: 8/15/2023
Recommendation: Approve Report of Actions Taken by the City Manager During the City Council Summer Recess from June 20 through August 8, 2023.

BACKGROUND:

On June 20, City Council approved a delegation of authority to the City Manager, or his designee, to approve and execute project related documents, including contract documents, and urgent administrative items during the City Council summer recess from the last City Council meeting held in June through August 8, 2023. This delegation of authority was granted in order to ensure continued provision of critical services and benefits, legal compliance, and timely completion of projects.

ANALYSIS:

To continue various essential services and purchases, the following contracts and/or amendments were executed by the delegation of authority to the City Manager during June 20 to August 8, 2023:

Vendor Description Amount (Fund) Reason for Urgency to Execute during Council Summer Recess.

Alice Wright Shopping Cart
Retrieval Services
$8,649
(General Fund)
Council previously approved this
shopping cart retrieval contract. The
contract was amended to increase
the contract amount due to higher
than anticipated volume and enable
prompt payment to the vendor.

Valley Water Wholesale water
purchase
$357,284
(Water Utility
Fund)
This contract was for the purchase
of wholesale water from Valley
Water and was approved by Council
as part of the adopted FY 22-23
budget resolution for contracts
exceeding $100,000. However, the
amount paid ($5,920,633) was more
than the amount authorized
($5,563,349) because of higher
Valley Water rates than appropriated
in the FY 22-23 budget. This action
authorized payment of the additional
amount of $357,284.

Total Amount $365,933
29 Item # C6.

POLICY ALTERNATIVE(S):

Not Applicable

FISCAL IMPACT:

Under the delegated authority, $365,933 was appropriated from the General Fund and Enterprise (Water Utility) Fund as part of the FY 2022-23 Adopted Budget.

California Environmental Quality Act (CEQA):

This item is not a project under the California Environmental Quality Act (CEQA) Guideline 15378(b).

RECOMMENDATION:

Approve Report of Actions Taken by the City Manager During the City Council Summer Recess from June 20 through August 8, 2023.

Attachment(s):

None
30 Item # C6.

CITY OF MILPITAS

AGENDA REPORT
(AR)

Item Title: Authorize and Approve Travel to Sacramento, CA, for Mayor Carmen Montano, Vice Mayor Evelyn Chua, and Acting City Manager Ned Thomas to Attend the League of California Cities Annual Conference and Expo to be Held on September 20-22, 2023, for a Combined Estimated Total Not-to-Exceed Amount of $6,750.00 and Appoint Mayor Carmen Montano as the City’s Voting Delegate and Vice Mayor Evelyn Chua as the City’s Alternate Voting Delegate (Staff Contact: Ashwini Kantak, Assistant City Manager, 408-586-3053) Category: Consent Calendar-Leadership and Support Services Meeting Date: 8/15/2023
Recommendation: (1) Authorize and approve travel to Sacramento, CA, for Mayor Carmen Montano and Vice Mayor Evelyn Chua to attend the Annual Conference of the League of California Cities scheduled on September 20 – 22, 2023, for a combined estimated total not-to-exceed amount of $4,500.00 budgeted under the Individual Elected Official allocation for Conferences / Meetings / Trainings; (2) Authorize and approve travel to Sacramento, CA, for the Acting City Manager Ned Thomas to attend the Annual Conference of the League of California Cities scheduled on September 20 – 22, 2023, for a total estimated amount of $2,250.00 budgeted under the City Manager’s Office for Conferences / Meetings / Membership; and
(3) Appoint Mayor Carmen Montano as the City’s voting delegate and Vice Mayor Evelyn Chua as the alternate voting delegate for the 2023 Annual Conference.

BACKGROUND:

The League of California Cities holds its Annual Conference and Expo each September in Sacramento, California. This highly attended annual conference is scheduled for September 20 – 22, 2023. The Mayor, Vice Mayor, and Acting City Manager’s attendance at the League of CA Cities Annual Conference and Expo will allow them to engage with other elected and city officials. During this conference, attendees will have a chance to attend state-mandated training. They will learn about a wide range of topics, such as housing, infrastructure, emergency preparedness, council-city manager relations, communications, mental health issues, civic engagement, and current and trending issues in the legislature. The preliminary agenda is attached to this report.

ANALYSIS:

The City of Milpitas Travel and Expense Policy requires all travel for the elected officials and City Manager to be approved by City Council. Council approval of this request will allow Mayor Carmen Montano, Vice Mayor Evelyn Chua, and Acting City Manager Ned Thomas to garner additional knowledge from other city’s elected officials to share with their colleagues. Continued participation and attendance in league conferences also ensure that the Milpitas community is fully represented at the regional and state levels.

POLICY ALTERNATIVE(S):

Not Applicable

FISCAL IMPACT:

The estimated expenses for the Sacramento League of California Cities Annual Conference and Expo, including the registration fee, are $2,250 for each attendee. To date, Mayor Carmen Montano and Vice Mayor Evelyn Chua have not utilized their Individual Elected Official allocation of $10,000 for Conferences/Meetings/Memberships.
31 Item # C7.

Sufficient funds are available in the City Manager’s Office for Conferences/Meetings/Memberships to cover Acting City Manager’s travel expenses.

California Environmental Quality Act (CEQA):

The action is an organizational or administrative activity of the City government that will not result in direct or indirect physical changes in the environment and is not a project pursuant to Cal. Code of Regs., tit. 14, § 15378.

RECOMMENDATION:
1) Authorize and approve travel to Sacramento, CA, for Mayor Carmen Montano and Vice Mayor Evelyn Chua to attend the Annual Conference of the League of California Cities scheduled on September 20 – 22, 2023, for a combined estimated not-to-exceed amount of $4,500 budgeted under the Individual Elected Official allocation for Conferences / Meetings / Trainings; 2) Authorize and approve travel to Sacramento, CA, for the Acting City Manager Ned Thomas to attend the Annual Conference of the League of California Cities scheduled on September 20 – 22, 2023, for a total estimated amount of $2,250 budgeted under the City Manager’s Office for Conferences / Meetings / Membership; and
3) Appoint Mayor Carmen Montano as the City’s voting delegate and Vice Mayor Evelyn Chua as the alternate voting delegate for the 2023 Annual Conference.

Attachment(s):
(a) Draft conference agenda
(b) Council budget tracking
32 Item # C7.

ATTACHMENT 1
33 Item # C7.
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ATTACHMENT 2
Travel and Training FY 23-24 Budget Tracking for Council Training/Travel Event Total Remaining Balance
-$ 10,000.00$
1 Training/Travel Event Total Remaining Balance
$ - $ 10,000.00
1 Training/Travel Event Total Remaining Balance
$ - $ 10,000.00
1 Training/Travel Event Total Remaining Balance
$ - $ 10,000.00
1 Training/Travel Event Total Remaining Balance
$ - $ 10,000.00
1 FY22-23 Amount
Expended/Estimated
Mayor Montano
Councilmember Phan
Councilmember Lien
Vice Mayor Chua
Councilmember Barbadillo
FY22-23 Amount
Expended/Estimated
FY22-23 Amount
Expended/Estimated
FY22-23 Amount
Expended/Estimated
FY22-23 Amount
Expended/Estimated
ATTACHMENT 2
53 Item # C7.

CITY OF MILPITAS

AGENDA REPORT
(AR)

Item Title: Approve and Authorize the City Manager to Execute a Stormwater Management Facilities Operation and Maintenance Agreement between the City of Milpitas and Alps Lodging 2, Inc. for the Springhill Suites Hotel Project at 1201 Cadillac Ct. (Staff Contact: Roberto Alonzo, Principal Civil Engineer, 408-586-3316) Category: Consent Calendar-Community Development
Meeting Date: 8/15/2023
Recommendation: Approve and authorize the City Manager to execute a Stormwater Management Facilities Operation and Maintenance Agreement between the City of Milpitas and Alps Lodging 2, Inc. for the Springhill Suites Hotel Project at 1201 Cadillac Ct.

BACKGROUND:

On March 3, 2015, the Property Owner received entitlements from the City allowing the development of the Property, for the construction of a new five-story, 124-room hotel, emergency vehicle access, utilities, and associated offsite and onsite improvements, landscaping, irrigation, and stormwater treatment measures on a

3.00 acre site located at 1201 Cadillac Court.

The development uses Best Management Practices (BMP), Low Impact Development (LID) and Integrated Management Practices (IMP). As part of this agreement the Developer shall be responsible for maintenance and operation of all the developments bio-treatment areas.

ANALYSIS:

In accordance with State Law and the City’s Municipal Regional Stormwater NPDES Permit (“MRP”) issued by the Regional Water Quality Control Board (“RWQCB”), new development and redevelopment projects that create and/or replace 10,000 square feet or more of impervious surface are required to incorporate Low Impact Development (“LID”) post construction stormwater control measures into the project. LID control measures include, for example, bioretention areas, flow-through planters, permeable pavement, infiltration trenches and tree well filters.

MRP section C.3.h.ii.(1)(a) and Milpitas Municipal Code Title XI Chapter 16 require development project property owners meeting the 10,000 square foot threshold to execute and record a Stormwater Management Facilities Operation and Maintenance Agreement (“Agreement”) with the City for the perpetual operation, maintenance and annual inspection of LID stormwater treatment facilities.

The Springhill Suites Hotel Project uses one type of storm water treatment device; the bio-retention stormwater treatment. The developer, Alps Lodging 2, Inc, will be responsible for the perpetual maintenance and operation of the storm water treatment facilities, which will be owned by the property owners and not maintained by the City.

Alps Lodging 2, Inc., has executed the required Stormwater Management Operations and Maintenance Agreement for this Project. The Agreement requires the developer to operate and maintain the installed stormwater treatment facilities in accordance with the Municipal Regional Stormwater NPDES Permit and the developer will compensate the City to complete the required annual system inspections.

Staff recommends the City Council approve the attached Stormwater Management Agreement (Attached), which has been reviewed by the City Attorney and approved as to form and by the Acting City Engineer as to content. 54
Item # C8.

POLICY ALTERNATIVE(S):

Alternative 1: Not approve the Agreement with the City for operation, maintenance and annual inspection of stormwater treatment facilities.

Pros: None

Cons: Not approving the Agreement would cause the project to be not in compliance with the conditions of development and the City’s Municipal Code and would be prohibitive by federal and state law.

Reason for Not Recommending: To be in compliance with federal and state law, including the MRP, and to allow for the on-going maintenance and annual City Inspection of the installed stormwater treatment devices, staff recommends approval of the Agreement.

FISCAL IMPACT:

The developer will pay for the required annual maintenance and inspection of the stormwater facilities.

California Environmental Quality Act (CEQA):

On March 3, 2015, the City Council found that the project is categorically exempt from further environmental review pursuant to Section 15332 (In-Fill Development Projects) of CEQA. Execution of the Agreement is not considered a project under CEQA as there will be no direct or reasonably foreseeable indirect physical change in the environment.

RECOMMENDATION:

Approve and authorize the City Manager to execute a Stormwater Management Facilities Operation and Maintenance Agreement between the City of Milpitas and Alps Lodging 2, Inc. for the Springhill Suites Hotel Project at 1201 Cadillac Ct.

Attachment(s):

1. Stormwater Management Facilities Operation and Maintenance Agreement

2. Operation and Maintenance Plan

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CITY OF MILPITAS

AGENDA REPORT
(AR)

Item Title: Authorize the City Manager to Negotiate and Execute Amendment No. 1 to Master Agreement with Santa Clara Valley Water District for Flood Protection Improvements within Lower Calera Creek, Lower Penitencia Creek, and Lower Berryessa Creek for up to $650,000; Authorize Reimbursement to the Santa Clara Valley Water District for City Improvements Completed as part of the Flood Protection Work, Project No. 3452; and Approve Budget Appropriation of $145,692 from the Sewer Infrastructure Replacement Fund, and $505,170.00 from the Water Fund Project No. 7100 Aging Water System/Seismic Improvement into Project No. 3452 (Staff Contact: Matt Cano, Deputy City Manager/Interim City Engineer, 408- 586-3012)
Category: Consent Calendar-Community Services and Sustainable Infrastructure

Meeting Date: 8/15/2023
Recommendation:

1. Authorize the City Manager to Negotiate and Execute Amendment No. 1 to Master Agreement with Santa Clara Valley Water District for Flood Protection Improvements within Lower Calera Creek, Lower Penitencia Creek, and Lower Berryessa Creek for up to $650,000; and

2. Authorize Reimbursement to the Santa Clara Valley Water District for City Improvements Completed as part of the Flood Protection Work, Project No. 3452

3. Approve Budget Appropriation of $145,692.00 of the Sewer Infrastructure Replacement Fund, and $505,170.00 from the Water Fund Project No. 7100 Aging Water System/Seismic Improvement into Project No. 3452

BACKGROUND:

The Santa Clara Valley Water District (Valley Water) has been performing various flood protection improvements for segments of Berryessa Creek, Calera Creek, and Penitencia Creek since 2018. The flood control improvement projects are a benefit to Milpitas and will provide 100-year flood protection for homes, schools, and businesses and will maintain Federal Emergency Management Agency (FEMA) levee accreditation along the Lower Penitencia Creek east levee located between California Circle and Berryessa Creek.

Valley Water completed flood capacity improvements to Upper Berryessa Creek and portions of Lower Berryessa Creek in 2020. The construction to increase flood capacity in Lower Berryessa Creek, Lower Calera Creek, and Lower Penitencia Creek was substantially completed in 2023. Improvements included construction of approximately 8,700 feet of creek channel from the Lower Berryessa Creek confluence with Lower Penitencia Creek upstream to Calaveras Boulevard, and approximately 2,830 feet of Lower Calera Creek channel from the Union Pacific Railroad rails, 880 feet upstream of Arizona Avenue. Work will also extend approximately 1-mile from Lower Penitencia Creek/Coyote Creek confluence to San Andreas.

The Valley Water Creek Projects, No. 3452 (“Project”), is in the adopted 2023-2027 Capital Improvement Program. The Project provides for the reimbursement to the Valley Water for the cost to remove and replace City infrastructure as required by Permit for construction of the flood control work including the costs associated with upgrades and for work Valley Water has agreed to construct for the City. On February 2, 2021, the City Council approved the Master Agreement between the City and Valley Water (Attachment 1) that specifies construction milestones, agency responsibilities during the design and construction project phases, amount and process for reimbursement, project appearance and atheistic enhancements, and the acceptance of the work completed by Valley Water for the City. 154
Item # C9.

During construction of Lower Calera Creek, the contractor discovered that segments of the City’s 50-year old water main and sewer lateral servicing Milpitas Material parcel crossing under the creek channel will be in conflict with the Valley Water’s new channel improvements. The original design was to leave these pipe segments in place to be buried in concrete under the creek channel, which would have been exposed to potential damage by construction and prevent future City’s maintenance of these pipes. The City requested these pipes be replaced within protective casings to ensure longevity and provide City access for future maintenance such as to repair a leak. The original agreed cost of this change to the City was $245,862.

In December 2022, following completion of construction, a leak occurred at both ends of the new pipe where it was connected to the existing pipe. Valley Water’s estimated costs of fixing this leak is approximately $1,000,000. The work included excavation, potholing, installation of the flexible connection to the existing pipe with anchorage on the northside of the channel and connecting to the existing pipe approximately 40 feet south of the channel’s maintenance road. City staff’s recommendation on how to share in the costs for this repair is discussed further below in the analysis.

ANALYSIS:

The total cost of both the original new pipeline construction as mentioned above and repairing the leaks at the connections has been estimated by Valley Water at approximately $1,250,000. It appears the primary reason for the leak was due to the stress on the couplings of the new pipe connecting to the existing pipe which was not compatible with the design of the channel. Since Valley Water maintained overall design and construction responsibility for the project, and the City recommended the design components of the new pipe, Valley Water and City staff have agreed to recommend a cost sharing arrangement to their respective City Council and Board members. In total, City staff is recommending a contribution not to exceed $650,000, with the remainder of the costs being paid by Valley Water.

Staff is recommending the City Council approve and authorize the City Manager to negotiate and execute Amendment No. 1 to the Master Agreement to reimburse Valley Water for the replacement of the City’s water main and sewer lateral. The approval of a Budget Appropriation will be required to provide funding for reimbursement to Valley Water for Project No. 3452. Staff recommends the Council approve a Budget Appropriation to appropriate the $145,692 from the Sewer Infrastructure Replacement Fund, and $505,170 from the Water Fund Project No. 7100 Aging Water System/Seismic Improvement in the total amount of $650,000 into Project No. 3452 (Attachment 1) increasing the Project’s budget from $1,750,000 to $2,400,000.

POLICY ALTERNATIVE(S):

Alternative 1: Not authorizing the City Manager to negotiate and execute the Amendment No. 1 to Master Agreement with Valley Water for the reimbursement of the removal and replacement of the City’s water main and sewer lateral.

Pros: None

Cons: A denial would result in Valley Water potentially not fixing the leaking pipeline, which could mean that the pipeline is out of service until such time as the City could move forward with a separate project, at greater expense, to fix the pipeline.

Reason for Not Recommending: If this amendment does not move forward, this pipeline would be out of service until such time as the City is able to budget an estimated $1,000,000 or more to repair the leaks.

FISCAL IMPACT:

There are insufficient funds in Project No. 3452, Santa Clara Valley Water District Creek for the $650,000 in increased costs associated with Amendment No. 1. In order to provide sufficient funding, approval of a Budget Appropriation (Attachment 2) of $145,692 from Sewer Infrastructure Replacement Fund, and $505,170 from Water Capital Project No. 7100 Aging Water System/Seismic Improvement is required. Water project CIP7100 is funded by Water Fund, Water Capital Surcharge and Water Line Extension Fund. The CIP 7100 current 155 Item # C9.

project balance of $3.9 millioncan support this request and transfer $505,170 to CIP 3452. There is also sufficient funding in Sewer Infrastructure Replacement Fund to fund the additional appropriation of $145,692 in CIP3452.
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Item # C9.

The following is a summary of the fiscal impact:

Description
Approved
Project
Expenditures
Requested
Budget
Appropriation

Funding Source
Appropriation
Total Revised
Project Budget
CIP3452 – Santa Clara
Valley Water District
Creek Project
$1,750,000 General Gov’t CIP
Fund
$1,750,000

Sewer Lateral
Replacement
- $145,692 Sewer Infrastructure
Replacement
$145,692
Water Main
Replacement & Repair
- $505,170 CIP Project No. 7100
(Aging Water
System/Seismic
Improvement Project)
Water Line Extension
Fund
$505,170
Total $1,750,000 $650,000 - $2,400,000

California Environmental Quality Act (CEQA):

Valley Water is the project owner for the LBC, LCC and LPC Projects and Lead Agency as described by the CEQA. An Environmental Impact Report (EIR) was prepared and adopted by the District for the LBC Project on December 13, 2011. An EIR for the LCC Project was certified by the Valley Water Board of Directors in December 2011, and an addendum to the EIR was approved by the Valley Water CEO on November 19, 2018.

The LPC Project EIR was certified by the Valley Water Board of Directors on November 28, 2017.

RECOMMENDATION:

2. Authorize Reimbursement to the Santa Clara Valley Water District for City Improvements Completed as part of the Flood Protection Work, Project No. 3452

3. Approve Budget Appropriation of $145,692 of the Sewer Infrastructure Replacement Fund, and $505,170 from the Water Fund Project No. 7100 Aging Water System/Seismic Improvement into Project No. 3452

Attachment(s):

Attachment 1 Master Agreement
Attachment 2 Budget Change Form

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Agreement Approval
2/25/20 Engineering Steve Erickson FY 2020/21
Santa Clara Valley Water District - Master Agreement
SCVWD [email protected] 408-630-2615
5750 Almaden Expressway, San Jose CA
95118
Water District for Flood Protection Improvements within Lower Calera Creek, Lower Penitencia Creek, and Lower Berryessa Creek and Authorize Reimbursement to the Valley Water District for City Improvements Completed as part of the Flood Protection Work, Project No. 3452
Negotiated
$0.00
$0.00
$0.00
$0.00
2/2/20

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Master Agreement with City of Milpitas for the Removal & Construction of City Improvements, Modification to City Facilities and Work Within the City’s Right of Way in LBC, LCC, and LPC Protection and Improvement Projects Version 12/11/20
MC14555 Page 1 of 76
City Agreement No.: Valley Water Agreement No.:

Encroachment Permit No(s):

SANTA CLARA VALLEY WATER DISTRICT

MASTER AGREEMENT FOR THE REMOVAL & CONSTRUCTION OF CITY IMPROVEMENTS, MODIFICATION TO CITY FACILITIES AND WORK WITHIN CITY’S

RIGHT OF WAY INCLUDED IN THE VALLEY WATER LOWER BERRYESSA CREEK

FLOOD PROTECTION PROJECT, LOWER CALERA CREEK FLOOD PROTECTION

PROJECT AND LOWER PENITENCIA CREEK IMPROVEMENTS PROJECT This Agreement for the Removal & Construction of City Improvements, Modification to City Facilities and Work within the City’s Right of Way (“Agreement”) is entered into by the City of Milpitas, a municipal corporation (“City”), and Santa Clara Valley Water District, a special district created by the California Legislature (“Valley Water”), on 2021, (“Agreement Effective Date”), and the parties agree to the terms and conditions as set forth herein.

RECITALS
A. WHEREAS, Valley Water as owner of certain waterways within the City desires to construct significant flood protection improvements along Lower Berryessa Creek (“LBC”), Lower Calera Creek (“LCC”) and Lower Penitencia Creek (“LPC”) within the City of Milpitas. Such work shall include approximately 8,700 feet of channel from LBC’s confluence with LPC upstream to Calaveras Boulevard, and approximately 2,830 feet of channel from the Union Pacific Railroad up to about 880 feet upstream of Arizona Avenue on LCC. Work will also extend approximately 1-mile from Coyote Creek confluence to just downstream of San Andreas Drive on LPC. Such works are collectively referred to herein as the “Lower Berryessa Creek Flood Protection Project” (“LBC Project”), the “Lower Calera Creek Flood Protection Project” (“LCC Project”) and the “Lower Penitencia Creek Improvements Project (“LPC Project”). The LBC Project, LCC Project and LPC Project are separate projects and each will have their own contractor and project schedules. Valley Water will manage the projects during the design and construction phases including hiring contractors and construction administration;
B. WHEREAS, the LBC Project and LCC Project will provide 100-year flood protection for homes, schools, and businesses in Milpitas and LPC Project will maintain the existing Federal Emergency Management Agency (FEMA) accreditation along the east levee located between California Circle and Berryessa Creek;
C. WHEREAS the City currently owns and maintains the California Circle storm pump station, Abbott Avenue storm pump station, and Jurgens storm pump station; D. WHEREAS the City owns and maintains their public storm drain outfalls located on Valley Water-owned lands and subject to Valley Water encroachment permits along all three creeks;

n.a.A4419M
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E. WHEREAS, City is the owner of the public street right-of-way and vehicular bridges, and is the owner of certain pedestrian bridges and pedestrian trails on Valley Water-owned lands within the LBC, LCC, and LPC Project limits;
F. WHEREAS, the City currently owns and maintains certain recreational improvements on Valley Water-owned lands along Berryessa Creek;
G. WHEREAS, Valley Water and City agreed to the maintenance, repair, replacement, and use obligations of City-owned recreational improvements along LBC located on Valley Water property within the City of Milpitas (“Valley Water Property”) as described in a Joint Use Agreement entered into by the parties on September 4, 2002, attached hereto as Exhibit A (“LBC Trail Agreement”);
H. WHEREAS, more specifically, City has a cont ractual obligation under Section 4(a) of the LBC Trail Agreement to compensate Valley Water for costs to remove or replace its City-owned recreational improvements located on Valley Water Property in the event Valley Water requires such removal or replacement in order to improve, maintain, or repair Berryessa Creek in any manner for Valley Water purposes; I. WHEREAS, to facilitate the LBC Project, Valley Water has undertaken the planning, design, construction, and construction management necessary to remove and replace the City-owned recreational improvements affected by the LBC Project; J. WHEREAS, as described in Section 4(b) of the LBC Trail Agreement, the removal and replacement of the City owned pedestrian bridge and trail is required to complete the LBC Project;
K. WHEREAS, an existing City trail, landscaping, and other recreational improvements were permitted and constructed in January 7
th, 1997 on Valley Water-owned land along
Lower Penitencia Creek (Lease Agreement Joint Use, SCVWD Agreement No. A2001 (“LPC Trail Agreement”), attached hereto as Exhibit B;
L. WHEREAS, City agreed to the maintenance, repair, replacement, and use obligations of the aforementioned City-owned recreational improvements located on Valley Water property (“Valley Water Property”) as described in the LPC Trail Agreement; M. WHEREAS, City has a contractual obligation under Section 6(b) of the LPC Trail Agreement to compensate Valley Water for costs to remove or replace its City-owned recreational improvements located on Valley Water Property in the event Valley Water requires such removal or replacement in order to improve, maintain, or repair Lower Penitencia Creek in any manner for Valley Water purposes; N. WHEREAS, the City has an interest in, maintaining a portion of the City’s recreational trail between California Circle and Cascadita Terrace on the east levee and from Milmont Drive to downstream of San Andreas Drive on the west levee, where it does not unreasonably interfere with the primary use of the property to carry out Valley Water’s mission of flood protection, water resource management, and stream stewardship; O. WHEREAS, the City has desire in, constructing duckbill check valves at all of their public storm drain and pump station outfalls located within the LCC and LPC Project limits, where it does not unreasonably interfere with the primary use of the property to carry out

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Valley Water’s mission of flood protection, water resource management, and stream stewardship;
P. WHEREAS the City currently owns and maintains vehicular bridges crossing Valley Water easements along North Milpitas Boulevard, Arizona Avenue, California Circle, and Milmont Drive;
Q. WHEREAS, the City has an interest in removing blight and in enhancing the appearance of Valley Water infrastructure along City right of way; R. WHEREAS, the City has requested that Valley Water undertake certain “betterments”, which are project elements that Valley Water determines exceeds the application of standards that would otherwise apply to the construction of that element. The project elements that Valley Water has determined are a betterment, include, but are not limited to: upsize of storm drain outfalls; replacement of concrete curb, gutter and sidewalk beyond the limits required for Valley Water to complete its work in accordance with City standards; asphalt pavement replacement along the City’s public trail beyond limits required for Valley Water to complete its work, and installation of duckbill check valves at City’s storm drain outfalls; and
S. WHEREAS, Valley Water and City wish to enter into this Agreement to outline respective party obligations for the removal, replacement, reconstruction or alteration of existing City Improvements within the LBC, LCC and LPC Projects (collectively, the “City Improvement Work” and reimbursement of any funds from the City to Valley Water for any and all costs incurred by Valley Water for undertaking such construction on behalf of the City.

T. NOW, THEREFORE the parties hereto agree as follows:

1. Incorporation of Recitals
The recitals set forth above are incorporated herein by this reference.

2. California Environmental Quality Act (CEQA)
a. Valley Water is the project owner for the LBC, LCC and LPC Projects and Lead Agency as described by the California Environmental Quality Act (CEQA). An Environmental Impact Report (EIR) was prepared and adopted by the District for the LBC Project on December 13, 2011. An EIR for the LCC Project was certified by the Valley Water Board of Directors in December 2011, and an addendum to the EIR was approved by the Valley Water CEO on November 19, 2018. The LPC Project EIR was certified by the Valley Water Board of Directors on November 28, 2017.
b. City has acted as the Lead Agency and project proponent for the City Improvement Work as described by CEQA.
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3. Scope of Work
a. For the LBC Project, Valley Water will perform three different elements (described under paragraphs 3.a.(1– 3) during construction of the LBC Project as part of this Agreement.
(1) City Improvement Work: (i) storm drain outfall modifications; (ii) Berryessa Pump Station discharge pipe modification; (iii) asphalt concrete pedestrian trail improvement of Valley Water
maintenance road; (iv) raised City owned pedestrian bridge; (v) retaining walls at pedestrian ramps; (vi) asphalt concrete pedestrian ramps; and (vii) concrete pedestrian ramp structure.

Work shall be completed at City cost.
(2) City Storm Drain Outfall Replacement & Flap Gate Installation:

Valley Water has designed and installed replacements of City storm drain outfalls and flap gates along the LBC Project. For the purposes of this Agreement, the replacement of outfalls shall be defined as the functional replacement with flap gates necessary to conform to the proposed channel geometry. Work shall be completed at City cost.
(3) Additional Levee Repair Work in 2019: City understands Valley Water contractors removed and replaced levees along Lower Berryessa Creek in 2019 to correct deficiencies from this project.

The additional levee repairs occurred on Lower Berryessa Creek from May to December 2019 and included removal of City
recreational trail facilities including asphalt surfaces recently installed by Valley Water from North Milpitas Boulevard east to the City’s pedestrian bridge structure. Valley Water agrees to replace these asphalt trail surfaces in-kind at the conclusion of the levee work at City cost.
(4) Valley Water agrees to complete asphalt trail surfaces from Abel Street to North Milpitas Boulevard, and from the City’s pedestrian bridge structure to Calaveras Boulevard. City and Valley Water agree that the asphalt trail work will be completed during construction of the LCC project at City cost.
(5) Valley Water will replace existing fencing and gates along City streets and trails with black vinyl fencing. City performed a final walk at the completion of construction and issued a punch list to replace the existing fencing and gates to Valley Water in January 2020. Valley Water shall make the punch list corrections agreed to by Valley Water and City. Replacement fence work shall be completed at Valley Water cost.
b. For the LCC Project, Valley Water will:
(1) Construct standalone headwalls adjacent to North Milpitas Boulevard and Arizona Avenue in accordance with Section 3.f, including the removal and replacement of City curb, gutter,

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sidewalk, and driveway aprons to the limits required for Valley Water to complete its work and in compliance with City Standards. (2) Valley Water will modify two (2) existing 15-inch and 18-inch storm drain outfalls and install two (2) new 18-inch and 36-inch outfall pipe extensions equipped with duckbill or flapgate check valves at City’s cost.
(3) Valley Water shall perform work in accord with the set of plans that are approved by the City prior to advertisement, bid, and award of a construction contract by Valley Water. Valley Water shall perform work in accord with city encroachment permit conditions and requirements, and applicable local and state regulations and statutes for Valley Water work within the City right of way. Valley Water shall provide the City with a reasonable schedule of the intended work. City shall complete permit review and approval within 6 weeks of receipt of permit application to further the timely completion of the construction schedule. c. For the LPC Project, Valley Water will:
(1) Construct City Improvement Work, at City’s cost, including:
(a) remove and replace three (3) existing 28-inch outfalls at California Circle Pump Station with new 36-inch outfalls equipped with duckbill check valves;
(b) remove and replace two (2) existing 18-inch outfalls at Abbot Avenue Pump Station with 24-inch outfalls equipped with duckbill check valves;
(c) Modify the existing 24-inch storm drain outfall, located between Interstate 880 and California Circle, equipped
with duckbill check valve;
(d) remove and replace the existing City trail and existing irrigation adjacent to the trail with in-kind surface material and irrigation, as shown in Exhibit B.
(2) Valley Water shall construct a new access road for California Circle Pump Station, within City right of way at Valley Water cost. (3) Valley Water shall perform work in accordance with City approved plans, Encroachment Permit conditions and requirements, and all applicable local and state regulations and statutes for Valley Water work within City right of way. Valley Water shall provide the City with a reasonable schedule of the intended work.
(4) If a water shut down is required, Valley Water agrees to complete this work at night or on weekends if requested by the City to minimize outages and impacts to City residents and businesses.

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(5) LPC City Recreational Improvements Subject to The LPC Trail Agreement. All recreational improvements resulting from the LPC City Improvement Work are deemed “improvements” as that term is defined in Section 1(c) of the LPC Trail Agreement. Hence, the terms and conditions contained in the LPC Trail Agreement shall dictate the parties’ obligations with respect to the recreational improvements resulting from the LPC Projects.
(6) The City and Valley Water each desire to purchase real property and right of way from each other for the completion of their respective Capital Projects. City right of way includes Assessor’s Parcel Number (APN) 022-30-042, 022-30-041, 022-37-000, and 022-37-002 that Valley Water desires for the LPC Project. Valley Water right of way includes APN 086-37-018 that the City desires to acquire an easement from Valley Water for installation of a vehicular crossing over Penitencia East Channel. Both agencies agree to consider the transfers of right of way and will work cooperatively in the completion of the purchase agreements that will include both transactions. The City and Valley Water will present the proposed transfers of right of way to their respective elected body, council, or Board of Directors for consideration and approval within 6 months of execution of this Agreement. Neither agency’s proposed transfer of right of way shall be conditioned on the other agency’s proposed transfer of right of way.

It is understood Valley Water and City may require possession of owned parcels prior to agency approvals of the purchase agreement. The City and Valley Water agree to issue Permits for their projects within each agency respective right of way. The City’s Encroachment Permit for the LPC project will include the City’s conditional approval to construct Valley Water
improvements upon City owned land pending completion of the land transfer purchase agreement.
d. Per Valley Water’s Coyote Watershed Aesthetic guidelines, the LCC and LPC Projects design shall incorporate black vinyl coated fencing and gates along the City’s street frontage at all intersections, and portions of trails within Valley Water maintenance access roads and Lower Calera Creek and Lower Penitencia Creek facilities where shown in Exhibit D.

The black vinyl fencing will be provided at no cost to City and upon issuance of a Notice of Completion by Valley Water shall own and be maintained in kind by Valley Water. At the conclusion of construction, Valley Water staff shall coordinate to meet with City staff for the installation of City pad locks to be daisy chained with Valley Water locks at maintenance road gates.
e. City standard concrete or asphalt pavement driveway aprons shall be installed as part of the LCC and LPC Projects at all intersections of Valley Water maintenance access roads and City streets. Aprons will extend from City street to Valley Water maintenance gates.

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f. As part of the LCC Project, it is necessary for Valley Water to construct, operate and maintain two (2) new standalone headwall structures (“Structure” - see Exhibit E), adjacent to but not attached or bearing against the City’s North Milpitas Boulevard and Arizona Avenue Bridges (herein referred to as “Bridges”) for the purpose of flood protection during a 100-year event. Valley Water shall not attach new headwall structures to City bridge structures. Damage to Valley Water’s structure arising from future major repairs or improvements of the City’s bridge shall not be the responsibility of the City except to the extent such damage is caused by the City’s or its contractor’s active negligence or willful misconduct. All improvements constructed adjacent to City roadways shall comply with City standard vehicle sight distance requirements as determined by the City Engineer in accordance with Section 3.b.(3) above. Work shall be completed at Valley Water cost.
g. Community Outreach. Valley Water shall provide project outreach to the City of Milpitas community along the length of the LCC and LPC Projects prior to the start of construction. Methods of outreach acceptable to the City include notices with social media platforms, Construction Notices mailed to residents and business along the LCC and LPC Projects, and community meetings. Community outreach methods shall be provided, and proof of such outreach shall be provided to the City. Valley Water shall provide Community Outreach through dissemination of Notices of Construction to residents adjacent to the project at least 30 calendar days prior to the start of work. Valley Water shall disseminate a second construction notice approximately two-weeks prior to the start of construction. Valley Water’s Deputy Operating Officer shall coordinate with the City and provide a presentation to the City Council at least one month prior to the start of construction.
h. Valley Water shall maintain all newly installed floodwalls and retaining walls in a clean maintained appearance including graffiti removal.

4. City Design Review, Approval, and Construction Inspection a. City’s Review and Approval of Valley Water’s Design Plans and Encroachment Permit Application
(1) Waiver of Permit, Land Use, Staff Review, and Construction Inspection Fees. In accordance with the “First Amendment to the Memorandum of Understanding (MOU) between Valley Water and the City of Milpitas for Waiver of Permit, Land Use, Staff Review, and Construction Inspection Fees,” any fees by Valley Water and City for design review, permits, and construction inspection shall be waived for Designated Projects. Both the LCC and LPC Projects are designated projects listed in Exhibit B of the MOU, Items 2 and 3.
(2) City Improvement Design Review: City shall review each set of project plans and specifications presented by Valley Water within the time specified by this agreement for City review. City’s design review is limited to City Improvements to be installed and will

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include conformance with City Standards and public safety. The City will provide written approval of the City Improvement Design as shown on the project plans and specifications. The City shall complete its design review prior to Valley Water’s Board adoption of plans and specifications.
(3) Encroachment Permit. Prior to starting LCC and LPC Project construction, or any work within City right of way, Valley Water shall obtain a City Encroachment Permit that shall be signed by Valley Water and its Contractor. City agrees that the permit term shall be effective until the Project is complete and accepted by Valley Water. Valley Water’s contractor(s) shall provide copies of their Liability Insurance documents naming the City and its officers as additional insured and shall provide a Faithful Performance Bond naming the City of Milpitas as a co-obligee or dual obligee for the full value of the project.
(4) City Inspection. Valley Water shall ensure that all work completed by its Contractor(s) within City right of way or upon City owned infrastructure shall be inspected by the City’s Public Works Construction Inspector to ensure the Contractor(s) performance according to the approved plans. Valley Water and the City agree to coordinate inspections such that both Valley Water and City inspection staff are present for all permit required inspections. City agrees to provide and conduct all requested inspections promptly and shall not unreasonably delay determinations and conclusions from said inspections.
(5) Valley Water shall provide quality control testing that shall be completed by a third-party testing lab for City Improvement Work.

Both laboratory and field testing shall be provided for concrete, asphalt, and class II aggregate base to ensure the work is in compliance with Valley Water's Construction Documents and City Standards. Improvements not passing testing requirements shall be reworked by the Contractor until compliance with the project requirements.

5. Cost Sharing: Review, Approval and Payment for City Improvement Work a. In consideration of the Valley Water’s work described in Section 3.a through 3.g, City agrees to remit payment for the City Improvement Work identified in Exhibit F. Exhibit F is a Cost Estimate of City Improvement Work and Payment to Valley Water for the LBC, LCC and LPC Projects.

City will reimburse Valley Water for the total cost of Valley Water’s construction cost of the City Improvement Work as provided in an updated Exhibit F that will be based on actual bid pricing from the construction contract awarded for each respective creek project. b. Valley Water has constructed the LBC Project and included each component of the LBC City Improvement Work as separate “bid items” in order to ascertain the bidders’ proposed price for this work. Valley Water awarded the contract in July 2016 and completed the civil work in

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July 2020. The attached Exhibit F reflects the actual bid pricing from the construction contract awarded for the LBC Project and requires no further update with respect to the LBC Project.
c. Valley Water will publicly bid the LPC and LCC Projects and include each component of the LPC and LCC City Improvement Work as separate bid items in order to ascertain the bidder’s proposed price for this work. d. Valley Water agrees to provide City with notice, documentation, and plans regarding any modifications, revisions, change orders, and/or extra work required for City Improvement Work within seven (7) calendar days of Valley Water becoming aware of or initiating such matter, so City can provide direction to Valley Water, if necessary and appropriate. e. City will respond to Valley Water regarding such matters within seven (7) calendar days of receipt of such modification information and provide written direction to Valley Water, if necessary and appropriate. f. Final Accounting & Payment for LPC Project. City agrees to remit payment of 10% of the costs outlined in the updated Exhibit F, as describe above in this subsection 5.a., within 30 business days of receiving a notice from Valley Water that Valley Water has awarded a construction contract for the LPC Project. Following Valley Water’s satisfactory completion of City punchlist items for the LPC project as described in Sections 6.a to 6.e, City agrees to initially accept the constructed City improvements and remit payment of 80% of the costs outlined in the updated Exhibit F for the LPC within 30 business days of acceptance after the Upper Berryessa Creek condition in 5.h is met. At the completion of the 1-year warranty period and City’s issuance of the Notice of Final Acceptance of the work, City will remit the remaining final 10% owed of the costs outlined in the updated Exhibit F for the LPC. g. Final Accounting & Payment for LCC Project. City agrees to remit payment of 10% of the costs outlined in the updated Exhibit F for the LCC within thirty (30) business days of receiving a notice from Valley Water that Valley Water has awarded a construction contract for the LCC Project. Following Valley Water’s satisfactory completion of punchlist items for the LCC project as described in Sections 6.a to 6.e, City agrees to initially accept the constructed City improvements and remit payment of 80% of the costs outlined in Exhibit F for the LCC within 30 business days of acceptance after the Upper Berryessa Creek condition in section 5.h is met. At the completion of the 1-year warranty period and City’s issuance of the Notice of Final Acceptance of the work, City will remit the remaining final 10% owed of the costs outlined in Exhibit F for the LCC. h. Final Accounting & Payment for LBC Project. City agrees to remit final payment to Valley Water for City Improvement Work constructed as part of LBC project after City acceptance of the resolution of the outstanding claim and punchlist work associated with the Upper Berryessa Creek (UBC) Project. An amount of $41,125 shall be deducted from the payment to Valley Water to reimburse City for its cost to replace the landscape damage from the UBC Project. Final payment shall be made

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within thirty (30) business days after City’s initial acceptance of City Improvement Work constructed as part of LCC project.

6. Completion and Acceptance
a. Valley Water shall provide a “Preliminary Notice of Completion” to City within seven (7) business days after completion of the Project improvements that will be owned by the City. The LCC, and LPC Projects will have different schedules so notification will be after each Project is completed.
b. City shall conduct, and Valley Water shall permit, within ten (10) business days thereafter (the “Inspection Period”), a final inspection of the Project improvements owned by the City.
c. If City determines that the City improvements have met the requirements in the plans and specifications for the LBC, LCC or LPC Projects approved by the City, the City will, no later than thirty (30 business days after receipt of the Preliminary Notice of Completion, provide Valley Water with written notice of its acceptance of the City Improvement Work for the subject project (“Notice of Acceptance”).
d. If City reasonably determines that the City Improvement Work does not meet the requirements of the plans and specifications for the subject LBC, LCC or LPC Projects approved by the City, the City shall, no later than ten (10) business days after the close of the Inspection Period, provide Valley Water with a written enumeration of the reasons why the City Improvement Work does not comply with said plans and specifications. Any inspection items or concern identified by the City that are not a part of the approved plans or specifications or an approved change order will constitute a new request and shall not be treated as an identified City Improvement Work included in the Scope of Work of this Agreement. New requests from the City may be negotiated by the parties at Valley Water’s discretion. Any new request, unless identified to address a valid public safety concern not resulting from prior direction by the City, shall be at the City’s cost. The parties will thereafter confer within ten (10) business days to determine what additional matters should be addressed to bring the City Improvement into compliance with the plans and specifications (i.e., punchlist) for the subject LBC, LCC or LPC Projects approved by the City. Valley Water shall work with their contractor to make any agreed upon corrections as are necessary within a reasonable time that is allowed under regulatory permit conditions, as required by City Encroachment Permit to meet the terms of the plans and specifications.
e. Upon completion of the punchlist corrections, Valley Water shall again submit to City a Preliminary Notice of Completion. The process of inspection and acceptance set forth in the preceding paragraphs of this Section 6 will then apply to this subsequent Preliminary Notice of Completion and issuance of a Notice of Acceptance.

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f. Following the City’s acceptance of the City Improvement Work, a 1-year warranty period will commence for the City Improvement Work listed in Exhibit G. The 1-year warranty period will cover defects, as mutually agreed to by City and Valley Water, for City Improvement Work.

7. Record Drawings
Valley Water agrees to provide the City with electronic as-built record drawings for the projects including City Improvement Work in CAD format and PDF format within thirty (30) business days after Valley Water completes the as-built record drawings. The as-built documents may take up to 4 to 6 months to finalize after construction has completed. Upon completion of construction, Valley Water shall provide the City with two full-size sets of the contractors red-lined as-built drawings documenting all changes made during construction. Valley Water shall provide the City with two complete full-sized sets of final project record drawings including CAD files within 4-6 months after completion of construction activities.

8. Ownership of Improvements
Upon completion of the LBC, LCC and LPC Projects, the project improvements appurtenant thereto shall be the responsibility of Valley Water. The LBC, LCC and LPC Projects improves and modifies existing outfall structures as they tie-in to creek banks. Upon completion of the LBC, LCC and LPC Projects and acceptance of the outfall improvements by the City, the City shall own and maintain the newly constructed outfall structures and flap gates/check valves in perpetuity. Any utility, bridge, and other facilities which were owned by the City prior to the LBC, LCC and LPC Projects shall remain the property of the City.

The City shall own and maintain the newly constructed City Improvement Work and trail improvements along the LBC and LPC (see Exhibit G) in perpetuity.

The rights, duties, and obligations of the Parties as set forth above in Section 4.a.(1). will survive termination, expiration, and suspension of this Agreement.

9. Indemnification
In lieu of and notwithstanding the pro rata risk allocation, which might otherwise be imposed between the parties pursuant to Government Code Section 895.6, the parties agree that all losses or liabilities incurred by a party shall not be shared pro rata but, instead, Valley Water and City agree that, pursuant to Government Code Section 895.4, each of the parties hereto shall fully indemnify, defend, and hold each of the other parties, their officers, board members, employees, and agents, harmless from any claim, expense or cost, damage or liability imposed for injury (as defined in Government Code Section 810.8) occurring by reason of the negligent acts or omissions or willful misconduct of the indemnifying party, its officers, employees, contractors, or agents, under or in connection with or arising out of any work, authority, or jurisdiction delegated to such party under this Agreement. No party, nor any officer, board member, or agent thereof shall be responsible for any damage or liability occurring by reason of the negligent acts or omissions or willful misconduct of the other party hereto, its officers, board members, employees, contractors, or agents, under or in connection with or arising out of any work, authority or jurisdiction delegated to such other party under this Agreement. Further, Valley Water shall require its

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contractor(s) to indemnify, defend and save City harmless to the same extent that Valley Water is indemnified under the contract between Valley Water and its contractor(s). The obligations set forth in this paragraph will survive termination, suspension, completion and expiration of this Agreement.

10. Term and Termination
a. The term of this Agreement will commence on the Agreement Effective Date and shall terminate when the LBC, LCC and LPC Projects are completed, upon City acceptance of City Improvement Work, and receipt by Valley Water of full payment from the City for Valley Water’s reasonable costs for design, construction, and construction management on the City Improvement Work. Full payment to Valley Water from the City for Valley Water’s reasonable costs for design, construction, and construction management on the City’ Improvement Work shall be as outlined in Sections 5.f, 5.g, and 5.h. Valley Water and City may mutually agree to extend the term of this Agreement.
b. The Agreement can be terminated only upon mutual written consent upon terms acceptable to both parties. Except for breach by District of this Agreement, City shall reimburse District for its reasonable costs in performing the City Improvement Work up to the termination date of this Agreement.

11. Insurance, Bonds, Risk of Loss, Damage to City Property, and Warranty a. During construction and until acceptance of either the LBC, LPC, or LCC Project by Valley Water’s Board of Directors, Valley Water assumes and shall bear all risk of loss, injury, damage or destruction to the City property (including, without limitation, City Improvement Work and any construction work in progress, materials, improvements, machinery and equipment). Notwithstanding the foregoing, should Valley Water encounter pre-existing material reasonably believed to be toxic waste and hazardous materials which have not been rendered harmless on City- owned property, Valley Water shall immediately stop work at the affected site and shall report the condition to the City in writing. The City shall have the option of separately contracting for any services required to directly remove and/or abate the toxic wastes and hazardous materials, if required, or may request Valley Water to perform the same with its contractor at City’s cost. The work in the affected area shall not thereafter be resumed except by agreement of the City. Valley Water shall not be responsible for the cost of removal or abatement of any such pre-existing toxic wastes and hazardous materials except where the presence or further spread of such pre-existing toxic wastes or hazardous materials is attributable to Valley Water or its contractor’s acts or omissions. b. Valley Water shall be responsible for all damages to persons or property that occurs as a result of its work and the work of its contractors covered by this Agreement, except damage or injury caused by City of Milpitas’ negligence or willful misconduct. Without limiting the foregoing, Valley Water shall remedy at its expense any damage to persons or property, including City-owned or controlled real or personal property, caused by or

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resulting from the negligent acts or omissions of Valley Water, its officials, officers, contractors, consultants or agents, except damage or injury caused by City of Milpitas’ negligence or willful misconduct. The City shall notify Valley Water, in writing, within a reasonable time after the discovery of any failure, defect, or damage caused by or resulting from the acts or omissions of Valley Water, its officials, officers, contractors, consultants or agents. After being notified, Valley Water shall perform with due diligence all necessary remediation work if Valley Water determines the failure, defect, or damage was caused by Valley Water’s negligence. If Valley Water is not at fault as determined by a mutually agreed upon dispute resolution process in accordance with paragraph 12 below, Valley Water may decide to proceed with the remediation work.

Upon completion of remediation work, City shall reimburse Valley Water for that portion, if any, of the remediation work caused by City’s negligence or willful misconduct. If Valley Water is deemed to be partially at fault, and fails to promptly remedy any defect or damage; the City shall have the right to replace, repair or otherwise remedy the defect or damage, and then withhold any payment due Valley Water, but only in the amount of the cost to remedy the defect, or seek reimbursement from Valley Water to the extent that Valley Water is at fault.. In the event of any emergency constituting an immediate hazard to health, safety or property, the City may undertake at Valley Water’s expense, and without prior notice, all work necessary to correct such condition. c. Valley Water shall require its contractor(s) to procure prior to commencement of construction of the LCC and LPC Projects and maintain for the duration of the LCC and LPC Projects the following types and limits of insurance in connection with the performance of the LCC and LPC Projects by Valley Water’s contractor(s):

Coverage Type and Scope Minimum Coverage Limits
Commercial general liability coverage
(Insurance Services Office occurrence
form CG 0001), including liability
coverage for premises and operations,
explosion and collapse hazard,
underground hazard,
products/completed operations hazard,
contractual liability, use of independent
contractors, and broad form property
damage with completed operations
$5,000,000 per occurrence and in
the aggregate for general liability,
bodily injury, personal injury, and
property damage
Automobile liability (Insurance
Services Office form CA 0001, code 1,
any auto)
$5,000,000 per accident for bodily
injury, including death, and property
damage
Workers’ compensation Statutory limits required by State of California
Employers’ liability $1,000,000 per accident for bodily injury or disease
(1) Valley Water shall require its contractor(s): (1) to add the City and its officers, officials, employees, agents and authorized volunteers as additional insureds on the contractor’s commercial general

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liability (using ISO CG 20 38 for ongoing operations, as well as ISO CG 20 37 for completed operations or endorsements at least as broad) and business automobile liability policies; (2) to provide a waiver of subrogation in favor of City and its officers, officials, and employees on the contractor’s commercial general liability, business automobile liability and workers’ compensation/ employer’s liability policies; and (3) to provide all coverage under the commercial general liability and business automobile liability policies on a primary and non-contributory basis. The coverage provided by the Valley Water’s contractor shall contain no special limitations on the scope of protection afforded the City. After execution of this agreement, Valley Water shall forward a copy of its contractor’s proof of insurance on ACORD Form 25-S and all necessary endorsements required herein. Any greater levels of coverage or endorsement requested by the City shall be paid for by the City.
(2) For the LBC project that has completed construction, Valley Water’s contractor has provided coverage: (1) to add the City and its officers, employees, agents and authorized volunteers as additional insureds on the contractor’s commercial general liability and business automobile liability policies; (2) to provide a waiver of subrogation in favor of City and its officers, and employees on the contractor’s commercial general liability, business automobile liability and workers’ compensation/ employer’s liability policies; and (3) to provide all coverage under the commercial general liability and business automobile liability policies on a primary and non-contributory basis. The coverage provided by the Valley Water’s contractor shall contain no special limitations on the scope of protection afforded the City.
(3) Valley Water will require its contractor(s) to post a performance bond, letter of credit or other financial security (the “Performance Bond”) in a sum equal to a minimum 100% of the estimated cost of the applicable LCC and LPC Projects. The Performance Bond will be for the purpose of insuring the proper completion of the subject Project(s). If Valley Water’s contractor fails to complete the subject Project(s) covered by the Performance Bond in accordance with the construction contract, Valley Water agrees to diligently pursue and enforce its and the City’s remedies under the Performance Bond. For the LPC and LCC Project construction agreement, Valley Water also agrees to require its contractor and contractor’s surety to name the City as co-obligee on the Performance Bond or to add City as an obligee through a co- obligee or dual obligee rider.
d. Valley Water will require its contractor(s) to warranty all materials and workmanship furnished in the construction of the City Improvement Work for one year from the date of Valley Water’s issuance of the Notice of Completion. Valley Water shall manage and oversee the City's warranty rights related to the City Improvement Work and pursue and enforce the

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warranty for defects in workmanship or materials and require the construction contractor to repair or replace the defective work so that it complies with the City Improvement Work plans and specifications reviewed and approved by the City. Valley Water shall not be obligated to pursue any warranty rights for defects in workmanship or materials that Valley Water reasonably determines are beyond or outside the provisions of the approved plans and specifications provided that any dispute regarding the same shall be submitted to the dispute resolution process under Section 12 below.

12. Disputes
a. This Agreement requires that City and Valley Water work together in good faith to achieve the intent of this Agreement. In the event a dispute arises as to the proper interpretation of the respective obligations and responsibilities of the Parties under this Agreement, or as to any other aspect of this Agreement, City and Valley Water agree that they each will assign the appropriate individuals to meet and make good faith efforts to negotiate a resolution of the dispute.
b. If after employing this informal resolution process either City or Valley Water may request an independent, mutually agreed upon mediator to facilitate further negotiation with the costs shared equally between each Party. However, nothing herein will prevent either City or Valley Water from exercising any rights it may have to enforce the terms of this Agreement at law or in equity.

13. Assignability
Both City and Valley Water agree that each party’s responsibilities as detailed herein have been determined in their mutual best interest toward accomplishing LBC, LCC and LPC Projects completion. Without the written consent of the other, neither City nor Valley Water will assign or transfer any interest in this Agreement or any of the obligations hereunder except to contractors or consultants working directly for them. Any unauthorized attempt by City or Valley Water to assign or transfer will be void and of no effect.

14. Written Notices
Except as otherwise specifically described herein, all communications with respect to this Agreement shall be given by first class mail to the parties as follows:

Valley Water City
Rechelle Blank, P.E.

Deputy Operating Officer
Valley Water
5750 Almaden Expressway
San Jose, CA 95118
Steven Erickson, P.E.

Engineering Director/City Engineer
City of Milpitas
455 E. Calaveras Blvd.

Milpitas, CA 95035-5411
Or to such other person, addresses, or telephone numbers as the parties may designate in writing from time to time.

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15. Severance of Invalid Terms
If any term, condition or covenant of this Agreement is held by a court of competent jurisdiction to be illegal, invalid, void or unenforceable, the remaining provisions of this Agreement shall be valid and binding on Valley Water and City, unless an essential purpose of this Agreement would be defeated by the loss of the illegal, invalid, void or unenforceable provision.

16. No Implied Waiver
The waiver by either City or Valley Water of any breach of any term, covenant, or condition contained in this Agreement, or any default in the performance of any obligations under this Agreement, shall not be deemed to be a waiver of any other term, covenant, condition, or obligation. Nor shall any waiver of any incident of breach or default constitute a continuing waiver of the same.

17. Governing Law and Compliance with Laws
This Agreement shall be constructed in accordance with the laws of the State of California. In the performance of this Agreement, City and Valley Water will comply with all applicable laws, ordinances, codes and regulations of the federal, state, and local governments.

18. Venue
In the event that suit is brought by either City or Valley Water, each agrees that venue will be exclusively vested in the state courts of either the County of Santa Clara, or in the United States Court, Northern Valley Water of California, in San Jose, California.

19. Nondiscrimination
a. In the performance of the Agreement, the parties will comply with all applicable federal, state, local laws and regulations, and will not discriminate against any contractor, subcontractor, employee, or applicant for employment, in the recruitment, hiring, employment, utilization, promotion, classification or reclassification, transfer, recruitment advertising, evaluation, treatment, demotion, layoff, termination, rates of pay or other forms of compensation, and selection for professional development training (including apprenticeship), or against any other person, on the basis of sex (which includes pregnancy, childbirth, breastfeeding and medical conditions related to pregnancy, childbirth or breastfeeding), race, religion, color, national origin (including language use restrictions), ancestry, religious creed (including religious dress and grooming practices), political affiliation, disability (mental and physical, including HIV or AIDS), medical condition (cancer and genetic characteristics), genetic information, marital status, parental status, gender, age (40 and over), pregnancy, military and veteran status, sexual orientation, gender identity and gender expression, the exercise of family and medical care leave, the exercise of pregnancy disability leave, or the request, exercise, or need for reasonable accommodation.

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b. Compliance with Applicable Equal Opportunity Laws. The City’s policy must conform with applicable state and federal guidelines including the Federal Equal Opportunity Clause, “Section 60-1.4 of Title 41, Part 60 of the Code of Federal Regulations,” Title VII of the Civil Rights Act of 1964 as amended; the American’s with Disabilities Act of 1990; the Rehabilitation Act of 1973 (Sections 503 and 504); the Age Discrimination Act of 1975 (42 U.S.C. sec. 6101 et seq.); California Fair Employment and Housing Act (Government Code Section 12900 et. Seq.); California Labor Code Sections 1101 and 1102.
c. Investigation of Claims. City must designate a specific position within its organization to be responsible for assuring nondiscrimination and non- harassment as provided in this Agreement. City must investigate all complaints directed to it by District. District will refer complaints in writing and City will advise District in writing when such investigations are concluded. The scope of such investigations must include all appropriate officers, employees, and agents of the City, as well as all contractors, subcontractors, consultants, subconsultants, and material suppliers of the City. In cases where such investigation results in a finding of discrimination, harassment, or hostile work environment, City must take prompt, effective disciplinary action against the offender.

20. Ownership of Materials
Except as otherwise set forth herein, all design and construction documents related to the LBC, LPC, and LCC Project improvements developed or discovered by Valley Water or any other person engaged directly or indirectly by Valley Water to perform the services required hereunder will be and remain the property of the Valley Water. City and Valley Water will make available to the other party such other records under its control as may be reasonably required for the parties to perform under this Agreement. City and Valley Water will maintain all documents and records produced under this Agreement for a minimum period of three years, or any longer period required by law, from the date of termination or completion of this Agreement.

21. Execution in Counterparts
This Agreement may be executed in counterparts, each of which, when executed and delivered, will be deemed to be an original, and which taken together will be deemed to be one and the same instrument, and will be binding as executed.

22. No Third Party Beneficiaries
This Agreement is entered into only for the benefit of the parties executing this Agreement and not for the benefit of any other individual, entity, or person.

23. Compliance with Other Conditions
Valley Water acknowledges that the authorization contained herein is in addition to and not in lieu of any other easements, inspections, or approvals which Valley Water may need to obtain from City, from other utility providers, or from property owners with respect to its construction of the LBC, LCC and LPC Projects. In

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consideration of the numerous benefits to be gained by the City from Valley Water’s construction of City Improvement Work and LBC, LPC, and LCC Project improvements, any land use along City right of way, inspections, or approvals to be granted or conducted by the City shall be at no cost to Valley Water in accordance with the MOU as set forth in Section 4.a.(1). of this Agreement.

24. Successors and Assigns
This authorization will bind and inure to the benefit of the parties, the respective heirs, successors and assigns.

25. Exhibits
The following Exhibits are attached hereto and incorporated herein by this reference:
x Exhibit A: LBC Trail Agreement
x Exhibit B: LPC Trail Agreement
x Exhibit C: LCC and LPC City Approved Drawings for Improvement Removal and Replacement
x Exhibit D: LCC and LPC Extent of the Black Vinyl Fences x Exhibit E: LCC Headwall Structure at North Milpitas Boulevard and Arizona Avenue
x Exhibit F: Estimated Cost of City Improvement Work and Payment to Valley Water
x Exhibit G: LCC and LPC List of City Improvement Work

26. Construction of Agreement
The parties hereto acknowledge and agree that, although this Agreement has been drafted by Valley Water’s legal counsel, City has had an opportunity to review and negotiate the terms of this Agreement as well as consult with City’s own legal counsel regarding the meaning of its terms. Consequently, the doctrine that ambiguities in an agreement should be resolved against the drafting party shall not be employed in connection with this Agreement, and this Agreement shall be interpreted in accordance with its fair meaning.

27. Amendments
All modifications to this Agreement must be in writing in the form of an amendment approved by both parties.
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28. Entire Agreement
This Agreement constitutes the entire agreement between the parties pertaining to the subject matter contained therein and supersedes all prior or contemporaneous agreements, representations and understandings of the parties relative thereto, except for the LBC Trail Agreement, attached hereto as Exhibit A, and the LPC Lease Agreement Joint Use, SCVWD Agreement No.

A2001, attached hereto as Exhibit B.
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EXHIBIT A
LBC Trail Agreement

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EXHIBIT A
LBC Trail Agreement (continued)
Master Agreement with City of Milpitas for the Removal & Construction of City Improvements, Modification to City Facilities and Work Within the City’s Right of Way in LBC, LCC, and LPC Protection and Improvement Projects Version 12/11/20
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EXHIBIT B
LPC Trail Agreement

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LPC Trail Agreement (continued)
Master Agreement with City of Milpitas for the Removal & Construction of City Improvements, Modification to City Facilities and Work Within the City’s Right of Way in LBC, LCC, and LPC Protection and Improvement Projects Version 12/11/20
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EXHIBIT C
LCC and LPC City Approved Drawings for Improvement Removal and Replacement

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LCC and LPC City Approved Drawings for Improvement Removal and Replacement (continued) Master Agreement with City of Milpitas for the Removal & Construction of City Improvements, Modification to City Facilities and Work Within the City’s Right of Way in LBC, LCC, and LPC Protection and Improvement Projects Version 12/11/20
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LCC and LPC Extent of Black Vinyl Fences

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LCC and LPC Extent of Black Vinyl Fences (continued)
Master Agreement with City of Milpitas for the Removal & Construction of City Improvements, Modification to City Facilities and Work Within the City’s Right of Way in LBC, LCC, and LPC Protection and Improvement Projects Version 12/11/20
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EXHIBIT E
LCC Headwall Structure at North Milpitas Boulevard and Arizona Avenue Bridges

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EXHIBIT E
LCC Headwall Structure at North Milpitas Boulevard and Arizona Avenue Bridges (continued) Master Agreement with City of Milpitas for the Removal & Construction of City Improvements, Modification to City Facilities and Work Within the City’s Right of Way in LBC, LCC, and LPC Protection and Improvement Projects Version 12/11/20
MC14555 Page 72 of 76

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Item # C9.

Page 75 of 76 ends

EXHIBIT F
Estimated Cost of City Improvement Work and
Payment to Valley Water
Lower Berryessa Creek (LBC) Costs
Item No. Description of Item Cost
1 Pedestrian Bridge Design $73,500
2 Construction Management $67,000
3 Storm Drain Outfall Modifications $30,000
4 Berryessa Pump Station Outfall Pipe Modifications $140,000 5 Aspahlt Concrete Pedestrian Path (N. Milpitas Blvd to Pedestrian Bridge)
$96,700
6 Raised Pedestrian Bridge $120,000
7 Retaining Walls at Pedestrian Bridge $180,000
8 Pedestrian Ramps (AC and PCC) $105,000
9 Guardrailing/Handrailing Pedestrian Ramps $275,500
Total LBC Costs $1,087,700
Credit for UBC landscape damages <$41,125>
Final Payment per Section 5.h. $1,046,575
Lower Penitencia Creek (LPC) Costs
Item No. Description of Item Cost
1 Demolition/Disposal of City Trail $70,000
2 New Asphalt Pavement City Pedestrian Trail $70,000
3 Concrete Paved City Pedestrian Trial $72,000
4 Installtion of duckbill check valves for storm drain outfalls at the California Circle and Abott Ave pump stations and storm drain outfalls located upstream of Interstate 880
$80,000
Subtotal LPC Costs $292,000
15% Contingency Costs $43,800
Total LPC Costs $335,800
10% Initial Payment per Section 5.g. $33,580
80% Payment per Section 5.g. $268,640
10% Final Payment per Section 5.g. $33,580
Lower Calera Creek (LCC) Costs
Item No. Description of Item Cost
1 Modify four (4) existing storm drain outfalls and install check valves
$19,200
2 Additional Asphalt Concrete Trail at LBC $227,000
Subtotal LCC Costs $246,200
15% Contingency Costs $36,930
Total LCC Costs $283,130
10% Initial Payment per Section 5.h. $28,315
80% Payment per Section 5.h. $226,500
10% Final Payment per Section 5.h. $28,315

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Item # C9.

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EXHIBIT G
LCC and LPC List of City Improvement Work
Lower Calera Creek (LCC) Project

1. Modify two existing 15-inch and 18-inch storm drain outfalls, located between N. Milpitas Blvd and the railroad crossing, including either duckbill or flap gate check valves

2. Extend two existing 18-inch and 36-inch storm drain outfalls, located upstream of Arizona Ave, including either duckbill or flap gate check valves

3. Install approximately 4,050 feet of new asphalt pavement pedestrian trail overlain the existing levee maintenance road along Lower Berryessa Creek, Phase 2 between Calaveras Blvd and Abel St.

Lower Penitencia Creek (LPC) Project

1. Remove and replace three existing 28-inch storm drain outfalls at the California Circle Pump Station with new 36-inch outfalls equipped with duckbill check valves

2. Remove and replace two existing 18-inch st orm drain outfalls at the Abbot Ave Pump Station with new 24-inch outfalls equipped with duckbill check valves

3. Modify existing 24-inch storm drain outfall, located between Interstate 880 and California Circle, including duckbill check valve

4. Remove and replace the existing City trail and existing irrigation adjacent to the trail within in-kind surface material and irrigation

234
Item # C9.

CITY COUNCIL MEETING
Item
2/2/2021
Staff

SUMMARY OF ACTIONS
C7. APPROVE AND AUTHORIZE THE CITY MANAGER TO EXECUTE MASTER

AGREEMENT WITH VALLEY WATER DISTRICT FOR FLOOD PROTECTION

IMPROVEMENTS WITHIN LOWER CALERA CREEK, LOWER PENITENCIA

CREEK, AND LOWER BERRYESSA CREEK AND AUTHORIZE REIMBURSEMENT

TO THE VALLEY WATER DISTRICT FOR CITY IMPROVEMENTS COMPLETED AS PART OF THE FLOOD PROTECTION WORK, PROJECT NO. 3452
Approved and authorized the City Manager to execute master agreement with Valley Water District for Flood Protection Improvements within Lower Calera Creek, Lower Penitencia Creek, and Lower Berryessa Creek and authorized reimbursement to the Valley Water District for City improvements completed as part of the Flood Protection Work, Project No. 3452.

Steve Erickson
Vote: 5-0
Motion: Mayor Tran / Vice Mayor Montano

8. APPROVE AND AUTHORIZE THE CITY MANAGER TO EXECUTE THE FIRST

AMENDMENT TO THE HISTORICAL HERITAGE GRANT PROGRAM FUNDING

AGREEMENT BETWEEN THE CITY OF MILPITAS AND THE COUNTY OF SANTA CLARA FOR THE ALVISO ADOBE RENOVATION, PROJECT NO. 5055 Approved and authorized the City Manager to execute the First Amendment to the Historical Heritage Grant Program Funding Agreement between the City of Milpitas and the County of Santa Clara for the Alviso Adobe Renovation, Project No. 5055.

The following spoke during Public Comment:

1. Urvishkumar Mehta
Motion was made to approve the item as recommended by staff.

Steve Erickson
Vote: 5-0
Motion: Vice Mayor Montano / Mayor Tran
9 CONDUCT FOURTH STUDY SESSION ON THE MILPITAS METRO SPECIFIC PLAN (UPDATE OF 2008 TRANSIT AREA SPECIFIC PLAN) WITH A PRESENTATION,

DISCUSSION AND CITY COUNCIL DIRECTION ON KEY PLAN POLICIES RELATED

TO TRANSPORTATION, MOBILITY, CIRCULATION AND TRAFFIC
Received a presentation from staff
City Council provided feedback and direction on key policies for Transportation, Mobility, Circulation and Traffic to guide preparation of the Draft Milpitas Metro Specific Plan.

The following spoke during Public Comment:

1. Urvishkumar Mehta
Consultants and staff will return for another presentation during the City Council’s March 2, 2021 regular meeting. This upcoming Milpitas Metro Plan update would cover parks, trails, streetscape, and infrastructure.

Ned Thomas and
Kevin Riley
No motion made for this agenda item.
2

235
Item # C9.

Certificate Of Completion
Envelope Id: E6E84C2ED46740FF8B60450E58CA3613 Status: Completed Subject: Please DocuSign: 02-02-2021 S&A.pdf, PO - SCVWD Master Agreement.pdf, REVISED Master Agreement ...

Source Envelope:

Document Pages: 78 Signatures: 8 Envelope Originator:

Certificate Pages: 6 Initials: 1 Mirna McGaughey
AutoNav: Enabled
EnvelopeId Stamping: Enabled
Time Zone: (UTC-08:00) Pacific Time (US & Canada)
455 E Calaveras Blvd
Milpitas, CA 95035
[email protected]
IP Address: 50.59.22.2
Record Tracking
Status: Original
February 25, 2021 | 14:00
Holder: Mirna McGaughey
[email protected]
Location: DocuSign
Signer Events Signature Timestamp
Susan Barrett
[email protected]
Security Level: Email, Account Authentication
(None)
Signature Adoption: Pre-selected Style
Using IP Address: 50.59.22.2
Sent: February 25, 2021 | 14:17
Viewed: February 25, 2021 | 14:58
Signed: February 25, 2021 | 14:59
Electronic Record and Signature Disclosure:

Accepted: February 25, 2021 | 14:58
ID: d847960a-658b-4b7a-9c67-19149ff70fa1
Steve Erickson
[email protected]
City of Milpitas
Security Level: Email, Account Authentication
(None)
Signature Adoption: Pre-selected Style
Using IP Address: 24.130.143.83
Sent: February 25, 2021 | 14:59
Viewed: February 25, 2021 | 15:03
Signed: February 25, 2021 | 15:03
Electronic Record and Signature Disclosure:

Accepted: April 13, 2020 | 11:44
ID: e8919c8d-3d7d-4a9b-8ace-d7481f0ff8df
Wendy Wood
[email protected]
Security Level: Email, Account Authentication
(None)
Signature Adoption: Pre-selected Style
Using IP Address: 24.4.179.199
Sent: February 25, 2021 | 15:03
Viewed: March 1, 2021 | 08:38
Signed: March 1, 2021 | 08:41
Electronic Record and Signature Disclosure:

Accepted: March 1, 2021 | 08:38
ID: d7386c7b-994c-4159-8036-63c16f40242c
Walter C. Rossmann
[email protected]
Director Finance
City of Milpitas
Security Level: Email, Account Authentication
(None)
Signature Adoption: Uploaded Signature Image
Using IP Address: 73.158.176.148
Sent: March 1, 2021 | 08:41
Viewed: March 1, 2021 | 09:08
Signed: March 1, 2021 | 09:22
Electronic Record and Signature Disclosure:

Not Offered via DocuSign
236
Item # C9.

Signer Events Signature Timestamp
Christopher Diaz
[email protected]
Security Level: Email, Account Authentication
(None)
Signature Adoption: Pre-selected Style
Using IP Address: 74.116.243.2
Sent: March 1, 2021 | 09:22
Viewed: March 1, 2021 | 10:02
Signed: March 1, 2021 | 10:07
Electronic Record and Signature Disclosure:

Accepted: March 1, 2021 | 10:02
ID: 888021e8-8abc-49bd-a89b-667563c7e7be
Ashwini Kantak,
[email protected]
Assistant City Manager
City of Milpitas
Security Level: Email, Account Authentication
(None)
Signature Adoption: Pre-selected Style
Using IP Address: 71.202.30.72
Sent: March 1, 2021 | 10:07
Viewed: March 2, 2021 | 09:30
Signed: March 2, 2021 | 09:31
Electronic Record and Signature Disclosure:

Accepted: June 8, 2020 | 20:26
ID: f98cdde4-7f01-4783-ab98-967eec8211d9
In Person Signer Events Signature Timestamp
Editor Delivery Events Status Timestamp
Agent Delivery Events Status Timestamp
Intermediary Delivery Events Status Timestamp
Certified Delivery Events Status Timestamp
Carbon Copy Events Status Timestamp
Eva Marie Sans
[email protected]
Security Level: Email, Account Authentication
(None)
Sent: March 2, 2021 | 09:31
Viewed: March 2, 2021 | 09:36
Electronic Record and Signature Disclosure:

Not Offered via DocuSign
Rachelle Currie
[email protected]
Senior Executive Assistant
City of Milpitas
Security Level: Email, Account Authentication
(None)
Sent: March 2, 2021 | 09:31
Electronic Record and Signature Disclosure:

Not Offered via DocuSign
Rechelle Blank
[email protected]
HQ 2nd Floor
Security Level: Email, Account Authentication
(None)
Sent: March 2, 2021 | 09:31
Electronic Record and Signature Disclosure:

Not Offered via DocuSign
237
Item # C9.

Carbon Copy Events Status Timestamp
Steve Erickson
[email protected]
City of Milpitas
Security Level: Email, Account Authentication
(None)
Sent: March 2, 2021 | 09:31
Electronic Record and Signature Disclosure:

Accepted: April 13, 2020 | 11:44
ID: e8919c8d-3d7d-4a9b-8ace-d7481f0ff8df
Witness Events Signature Timestamp
Notary Events Signature Timestamp
Envelope Summary Events Status Timestamps
Envelope Sent Hashed/Encrypted February 25, 2021 | 14:17 Certified Delivered Security Checked March 2, 2021 | 09:30 Signing Complete Security Checked March 2, 2021 | 09:31 Completed Security Checked March 2, 2021 | 09:31
Payment Events Status Timestamps
Electronic Record and Signature Disclosure
238
Item # C9.

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239
Item # C9.

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240
Item # C9.
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Item # C9.

City of Milpitas, California

BUDGET CHANGE FORM

From (Credit) To (Debit)
Type of Change

Account

Amount

Account

Amount
Check one:

 Budget
Appropriation
Budget Transfer

331 9513452153849
455 2961

401 951710014800
402 3899

331 951345293852
402 2961
$145,692
$145,692

$505,170
$505,170

455 3952
331 951345274800

401 951710093999
402 2961

402 3943
331 951345274800
$145,692
$145,692

$505,170
$505,170

Recommendation:

1. Authorize the City Manager to Negotiate and Execute Amendment No. 1 to Master Agreement with Valley Water District for Flood Protection Improvements within Lower Calera Creek, Lower Penitencia Creek, and Lower Berryessa Creek; and

2. Authorize Reimbursement to the Valley Water District for City Improvements Completed as part of the Flood Protection Work, Project No. 3452

BACKGROUND:

Valley Water have been performing various flood protection improvements for segments of Berryessa Creek, Calera Creek, and Penitencia Creek since 2018. The flood control improvement projects are a benefit to Milpitas and will provide 100-year flood protection for homes, schools, and businesses and will maintain Federal Emergency Management Agency (FEMA) levee accreditation along the Lower Penitencia Creek east levee located between California Circle and Berryessa Creek.

Valley Water completed flood capacity improvements to Upper Berryessa Creek and portions of Lower Berryessa Creek in 2020. The construction to increase flood capacity in Lower Berryessa Creek, Lower Calera Creek, and Lower Penitencia Creek were substantially completed in 2023. Improvements included construction of approximately 8,700 feet of creek channel from the Lower Berryessa Creek confluence with Lower Penitencia Creek upstream to Calaveras Boulevard, and approximately 2,830 feet of Lower Calera Creek channel from the Union Pacific Railroad rails, 880 feet upstream of Arizona Avenue. Work will also extend approximately 1-mile from Lower Penitencia Creek/Coyote Creek confluence to San Andreas.

The Santa Clara Valley Water District Creek Projects, No. 3452 (“Project”), is in the adopted 2023-2027 Capital Improvement Program. The Project provides for the reimbursement to the Valley Water for the cost to remove and replace City infrastructure as required by Permit for construction of the flood control work including the costs associated with upgrades and for work Valley Water has agreed to construct for the City.

On March 9, 2021, the City Council approved the Master Agreement between the City and Valley Water (Attachment 1) that specifies construction milestones, agency responsibilities during the design and construction project phases, amount and process for reimbursement, project appearance and atheistic enhancements, and the acceptance of the work completed by Valley Water for the City.

242
Item # C9.

ANALYSIS:

The total cost of both the original new pipeline construction as mentioned above and repairing the leaks at the connections is approximately $1,250,000. It appears the primary reason for the leak was due to the stress on the couplings of the new pipe connecting to the existing pipe which was not compatible with the design of the channel. Since Valley Water maintained overall design and construction responsibility for the project, and the City recommended the design components of the new pipe, Valley Water and City staff have agreed to recommend a cost sharing arrangement to their respective City Council and Board members. In total, City staff is recommending a contribution not to exceed $650,000, with the remainder of the $1,250,000 (and any additional costs) being paid by Valley Water.

POLICY ALTERNATIVE(S):

Pros: None

243
Item # C9.

FISCAL IMPACT:

There is insufficient funds in Project No. 3452, Santa Clara Valley Water District Creek for the cost sharing of construction with Valley Water and requires the approval of a Budget Appropriation (Attachment 2) of $145,692 from Sewer Infrastructure Replacement Fund, and $505,170 from Water Capital Project No. 7100 Aging Water System/Seismic Improvement. Water project CIP7100 is funded by Water Fund, Water Capital Surcharge and Water Line Extension Fund. The current project balance of $3.9m can support this request and transfer $505,170 to CIP3452. There is also sufficient funding in Sewer Infrastructure Replacement Fund to fund the additional appropriation of $145,692 in CIP3452.

The following is a summary of the fiscal impact:

Description
Approved
Project
Expenditures
Requested
Budget
Appropriation

Funding Source
Appropriation
Total Revised
Project Budget
CIP3452 – Santa Clara
Valley Water District
Creek Project
$1,750,000 General Gov’t CIP
Fund
$1,750,000

California Environmental Quality Act (CEQA):

City has acted as the Lead Agency and project proponent for the City Improvement Work as described by CEQA.

RECOMMENDATION:

2. Authorize Reimbursement to the Valley Water District for City Improvements Completed as part of the Flood Protection Work, Project No. 3452

Attachment(s):

Attachment 1 Master Agreement
Attachment 2 Amendment No. 1
Attachment 3 Budget Change Form

244
Item # C9.

 Check if City Council Approval required. Meeting: August 15, 2023

Requested by: Department Head: Matt Cano Date: August 8, 2023 Reviewed by: Finance Director: Lauren Lai Date:

Approved by: Acting City Manager: Ned Thomas Date:

Date approved by City Council, if required: Confirmed by:

FI/24786/V Form 30-222 (Rev. 1/92)
245
Item # C9.

CITY OF MILPITAS

AGENDA REPORT
(AR)

Item Title: Authorize the Acting City Manager to Execute the Fee Reimbursement Agreement for Transit Area Specific Public Facilities and Public Improvements at the 308 Sango Court Project by Milpitas Pacific Associates, L.P.; and Approve Budget Appropriation in the Amount of $153,000.00 to the Non-Departmental Operating Budget in the TASP Fund (Staff Contact: Roberto Alonzo, Principal Civil Engineer, 408-586-3316)
Category: Consent Calendar-Community Development
Meeting Date: 8/15/2023
Recommendation: (1) Authorize the City Manager to execute the Fee Reimbursement Agreement for Transit Area Specific Public Facilities and Public Improvements at the 308 Sango Court Project by Milpitas Pacific Associates, L.P.; and (2) Approve budget appropriation in the amount of $153,000.00 to the non-departmental operating budget in the TASP fund.

BACKGROUND:

On August 5, 2021, the City Council approved a Site Development Permit No. SD19-0014, Density Bonus Permit No. DB19-0001, Tree Removal Permit No. TR19-0029 and Environmental Assessment No. EA19-0007 to allow demolition of an existing industrial building, removal of three protected trees, and development of a multi-family residential building, up to 77 feet (six stories) in height, with up to 85 dwelling units (100% affordable), a ground-floor parking garage with up to 48 vehicles spaces, and 20,788 square feet of public and private open space on a 1.11-acre parcel located at 308 Sango Court (APN 086-36-036) within the Milpitas Metro Specific Plan area.

Projects within the TASP area are required to pay TASP Development Impact Fees (TASP Fee) to be used for design and construction of certain public facilities and improvements within the TASP area. In addition to the construction of the required TASP improvements for the project, the City requested the Developer to also replace an existing 12-inch domestic water main within an existing 10-PSUE along the western edge of the property. The location of the existing water main in relation to the final configuration of the proposed above- ground facilities for the 308 Sango Court Residential Project would make it very difficult for the City to replace the water line without incurring a significant cost in the future. The water main replacement will serve more than the Developer’s properties within the TASP Area. The developer will be reimbursed a percentage of the actual cost to replace the water main, which is estimated not to exceed $153,000 from the TASP Fund.

A Fee Reimbursement Agreement is proposed to allow for the reimbursement against the TASP Fund paid by the Developer for replacement of the existing 12” Domestic Water Main. The Fee Reimbursement Agreement has been reviewed by the City Attorney as to form.

ANALYSIS:

Staff recommends the City Council grant authorization to the City Manager to execute the Fee Reimbursement Agreement for the construction of the TASP Public Improvements. The Developer will be reimbursed for a percentage, up to 85%, of the actual cost for the construction of the new public improvements eligible for reimbursement for the design and construction of the new 12 inch domestic water main line that runs along the entire site western public service utility easement, which are estimated not to exceed $153,000.

246
Item # C10.

POLICY ALTERNATIVE(S):

Alternative 1:

Do not approve granting authorization to the City Manager to approve the Fee Reimbursement Agreement Amendment.

Pros: None

Cons: If the Fee Reimbursement Agreement is not authorized the City would have to find other means to construct the public improvements or have to construct the public improvements ourselves. The City has determined that there will be greater efficiency if the Developer replaces the new 12-inch domestic water main during the construction of their project.

Reason for Not Recommending: Granting acceptance of installed public improvements would allow the City to own and maintain the improvements and would ensure that water main infrastructure stay up to date and reduce the risk of infrastructure failure.

FISCAL IMPACT:

The fee reimbursement for the public improvements would be funded by the TASP Fee. The actual amount of the reimbursement will be based upon the actual cost for design and construction of the improvements. The estimated reimbursement amount is not to exceed $153,000. A budget appropriation is needed from the TASP Fund.

California Environmental Quality Act (CEQA):

The project entails replacement or reconstruction of existing structures and facilities where the new structure will be located on the same site as the structure replaced and will have substantially the same purpose and capacity as the structure replaced and is exempt from CEQA pursuant to Cal. Code Regs., tit. 14, § 15302. As an independent justification, the project site is located within the TASP planning area and is therefore further exempt from environmental review pursuant to CEQA Guidelines Section 15168(c), in that the project scope falls under the covered activities in the Transit Area Specific Plan EIR, SCH#2006032091 certified by the City Council on June 3, 2008.

RECOMMENDATION:

Approve budget appropriation of $153,000 to the non-departmental operating budget in the TASP fund.

Attachment(s):

Attachment 1: Fee Reimbursement Agreement
Attachment 2: Exhibit A Water Line Estimate
Attachment 3: Budget Change Form

247
Item # C10.
1 34905\14361213.2

CITY OF MILPITAS

FEE REIMBURSEMENT AGREEMENT

FOR TRANSIT AREA SPECIFIC PLAN PUBLIC FACILITIES AND

PUBLIC IMPROVEMENTS

This Fee Reimbursement Agreement for Milpitas Metro Plan Public Facilities and Public Improvements (the “Agreement”), dated as of ________, 2023, is by and between the City of Milpitas, a municipal corporation of the State of California (“City”), and Milpitas Pacific Associates, L.P. (“Developer”).

WITNESSETH:

WHEREAS, Developer is the permittee of that certain real property (APN No. 086-36-036) located at 308 Sango Court in Milpitas, California; and

WHEREAS, on August 5, 2021, the City Council conditionally approved Site Development Permit No. SD19-0014, Density Bonus No. DB19-0001, and Environmental Assessment No. EA19-0007 for an 85- unit multifamily apartment building development project located at 308 Sango Court in Milpitas, California (the “MPA Housing Project”); and

WHEREAS, City has adopted a Milpitas Metro Plan and a Transit Area Specific Plan Development Impact Fee (the “TASP Fee”) to provide funds to finance public facilities and public improvements within the Milpitas Metro area; and

WHEREAS, City has adopted a Fiscal Mitigation and Services Plan for the TASP (EPS no. 17107) in 2008, as amended in 2014, outlining the public facilities and public improvements that are to be constructed with the TASP fees (the “Financing Plan”); and

WHEREAS, the Project is in the Milpitas Metro area and subject to the TASP Fee; and

WHEREAS, the total Milpitas TASP Fee for the Project is estimated to be Three Million Four Hundred Forty-One Thousand Three Hundred Ninety-Five Dollars ($3,441,395). The project is subject to the deferral of payment of the full TASP fee amount until the Certificate of Occupancy is to be issued as provided for in Section 4 of City Council Resolution No. 9096; and

WHEREAS, in partnership with the Developer, the City has requested that the developer replace an existing water main that is long passed its recommend life cycle. The developer agrees to replace the water main requested by the City and also to pay up to a maximum of 50% of the cost for construction as their project budget allows, while the City reimburses the Developer for the remainder of the cost. A complete list of reimbursable items are shown in Exhibit A. (the foregoing being the “Improvements” and the construction documents describing the Improvements being the “Designs”). The Improvements and Designs are included in the Financing Plan and would otherwise be financed by the Milpitas TASP Fee, and which Improvements and Designs will serve more than the MPA Housing Project; and

WHEREAS, City and Developer desire to enter into this Agreement to provide for allowable reimbursement against the Milpitas TASP Fee paid by Developer for the Improvements and Designs.

NOW, THEREFORE, in consideration of the mutual promises contained herein, City and Developer hereby agree as follows:

SECTION 1. Allowable Fee Reimbursements
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Item # C10.
2 34905\14361213.2

Subject to the terms, conditions, and obligations of this Agreement, the City shall provide reimbursement to the Developer, from a portion of the Milpitas TASP Fee actually paid by Developer, in an amount based on verifiable actual costs of the Improvements and Designs pursuant to the procedure in Section 9 of this Agreement, which shall equal up to between fifty (50) and eighty five (85) percent of the actual amount paid by Developer to complete the Improvements and Designs. Under no circumstance shall the reimbursement exceed the amount of one hundred and fifty-three thousand dollars ($153,000). Under no circumstance shall the reimbursement exceed the actual amount of the TASP fee paid by the developer.

SECTION 2. Reimbursement Issuance Timing

2.1 Developer shall pay the City the full applicable Milpitas TASP Fee, prior to issuance of Certificate of Occupancy, for each residential unit at the rate in effect at that time, subject to any annual adjustment as provided for in Section 9 of City Council Resolution No. 8344.

2.2 City shall pay to Developer the reimbursement required hereunder upon Developer’s completion and City’s acceptance of the Improvements and Designs as stipulated hereinafter, including Developer’s provision of all supporting documentation for all costs in accordance with the timing specified in Section 9 below.

SECTION 3. Completion of the Improvements

3.1 Developer shall complete construction of the Improvements in accordance with the plans and specifications approved by City and in accordance with City standard construction specifications and this Agreement, and the related Improvement Agreement. All Improvements shall be completed (determined by filing of a notice of completion) prior to issuance of first certificate of occupancy for the MPA Housing project.

3.2 In the event the Improvements are not fully constructed and accepted by City as set forth herein, Developer shall be in breach of this Agreement, and in violation of the Project conditions of approval. In addition to all other legal remedies available at law or equity, City may seek reimbursement from Developer for all reimbursements provided under this Agreement including interest at the legal rate. Additionally, City may withhold any and all certificates of occupancy, building permits or any other City approval or permit relating to the Project.

SECTION 4. Inspection of Improvements

4.1 City shall at all times have access to the construction site during construction of the Improvements. Developer shall furnish City with all reasonable information necessary for ascertaining full knowledge of the Improvements with respect to the progress, workmanship and character of materials and equipment used and employed in the work contemplated herein.

4.2 Neither observation of the work by City nor failure of City to inspect the Improvements or to discover defects in material or workmanship shall relieve Developer from its obligations to complete construction in accordance with the plans and specifications approved by City and to ensure that the Improvements are free of defects in materials and workmanship.

SECTION 5. Acceptance of the Improvements
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5.1 At such time as the Developer believes that the Improvements are complete, the Developer shall provide written notice of completion to the City, requesting an inspection. Within ten (10) business days, or as mutually agreed following the date of receipt of the Developers’ written notice of completion of Improvements, the City shall conduct a final inspection of the applicable Improvements. If during the final inspection, the City determines that the Improvements have not been completed in accordance with all applicable codes, regulations, permits and approved plans, the City shall prepare a punch list of all items to be completed by the Developer and shall provide such punch list to the Developer within ten (10) business days or as mutually agreed following the final inspection.

5.2 If the City delivers such punch list to the Developer within said ten (10) business day period, or such other mutually agreed upon period, then the Developer shall undertake to repair such punch list items in a diligent manner within twenty (20) calendar days. Upon completion of the punch list work, the Developer shall request another final inspection from the City and within ten (10) business days following such written notice from the Developer, the City shall conduct another final inspection.

5.3 If the City determines that the punch list work is complete and no other deficiencies are identified, the Developer shall be deemed to have successfully completed the final inspection.

If the City determines that the punch list work is not complete, then City and Developer shall repeat the inspection/punch list procedures specified in this Section until the successful completion of the punch list work and a final inspection. At such time as Developer has successfully completed the final inspection, City shall schedule the initial acceptance of the completed Improvements within thirty (30) calendar days thereafter before the City Council.

SECTION 6. Conveyance of the Improvements

Once the Improvements are accepted by the City Council and no liens have been filed with respect to such Improvements within ninety (90) days following the date of filing the Notice of Completion for such Improvement (or if valid liens were filed during such period, such liens have been bonded around or removed prior to acceptance), the Improvements shall become the property of the City. The Developer shall take any and all actions necessary to convey to the City and vest in the City full, complete and clear title to the Improvements through the City’s initial and final acceptance procedures.

SECTION 7. Completion and Acceptance of the Designs

7.1 Developer shall perform and complete the Designs in accordance with the Project conditions.

The Designs are considered deemed complete upon approval of the construction plans and specifications, including all required supporting documents by the City. 250
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7.2 In the event the Designs are not fully completed and approved by City and/or other public agencies as set forth herein, Developer shall be in breach of this Agreement and in violation of the Project conditions of approval. In addition to all other legal remedies available at law or equity, City may seek reimbursement from Developer for all reimbursements provided under this Agreement including interest at the legal rate (if and to the extent any such reimbursements have been provided hereunder). Additionally, City may withhold any and all certificate of occupancy, building permit, or any other City approval or permit relating to the Project. City approved plans and specifications, including all supporting documents become City property upon completion of the Designs.

SECTION 8. Delivery of Design Plans and Specifications

Prior to acceptance of the Improvements by the City, the Developer shall deliver to the City copies of all plans, specifications, shop drawings, as-built plans, operating manuals, service manuals, warranties and other documents relating to the design, construction, installation and operation of the applicable Improvements. Plans shall be submitted in CAD format, GIS format and/or PDF format as acceptable to the City.

SECTION 9. Supporting Documents for the Actual Costs

Following Developer’s completion and City’s acceptance of the Improvements and the Designs provided in Sections 3 to 8 above, the Developer shall provide final invoices, records, change order documents, payment invoices, cancelled checks and other necessary documents, as requested by the City, in order to provide to the City a final accounting of the total amount of actual costs for the Improvements and the Designs. The City shall thereafter have sixty (60) days in which to review and approve such items. If the City notifies the Developer within that 60-day period that it does not approve all such items, and, if the Developer disputes the disapproval of such items by the City, the sixty (60) days may be extended as mutually agreed upon to provide an opportunity for the Parties to use diligent and good faith effort to resolve said dispute. Assuming no dispute as to the final accounting (or once said dispute has been resolved), the City shall, within thirty (30) days thereafter, reimburse the Developer in the amount up to eighty five percent (85%) of the actual costs to complete the Improvement and Design, as documented in the final accounting, not to exceed the amount of TASP fees paid by the Developer. The amount of the actual costs for the Improvements and the Designs shall not exceed the estimated value for “MPA Housing Project Improvements” identified on Exhibit “A” in the amount not to exceed One Hundred Fifty-three Thousand Dollars ( $153,000) without the express prior written approval of the City, which will require an amendment of this Agreement.

SECTION 10. Limited City Obligation

The reimbursement obligations arising from this Agreement are neither a debt of the City nor a legal or equitable pledge, charge, lien, or encumbrance upon any of its property or upon any of its income, receipts, or revenues, except for the developer impact fees that would have otherwise been collected for the Improvements, the Designs and other capital facilities set forth in the Project plans for the TASP Fee program. Neither the City of Milpitas general fund nor any other fund of the City, except the TASP Fee program, shall be liable for the reimbursement or payment of any obligations arising from this Agreement. The reimbursement or taxing power of the City is not pledged for the payment of any obligation arising from this Agreement. The Developer shall not compel the forfeiture of any of the City’s property to satisfy any obligations arising from this Agreement.
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SECTION 11. Liens, Claims, and Encumbrances

Prior to acceptance of the Improvements by the City, the Developer shall provide a written guarantee and assurance to the City that there are no liens, claims, or monetary encumbrances on the Improvements and the Designs, together with unconditional final releases from all contractors and material suppliers, and with copies of invoices and corresponding checks issued by the Developer for all items for which fee reimbursements are requested under this Agreement for the Improvements and the Designs. The City shall have no obligation to accept the Improvements, or to issue any reimbursements for Improvements and the Designs until the Developer has cleared any and all liens, claims and monetary encumbrances from the Improvements and the Designs and provided the required documentation, guarantee and assurance in writing, to the satisfaction of the City.

SECTION 12. No Third Party Beneficiary

By entering into this Agreement, City is not entering into any contract or agreement with any general contractor, subcontractor, or other party nor is any general contractor, subcontractor, or other party a third party beneficiary of this Agreement, and City shall have no obligation to pay any general contractor, subcontractor, or other party for any work that such general contractor, subcontractor, or other third party may do pursuant to the plans and specifications for the Improvements and the Designs.

SECTION 13. Warranty and Repair

In accordance with this Section 13 and the terms and conditions of the Subdivision Improvement Agreement, Developer hereby warrants the Improvements as to materials and workmanship and should any failure of any Improvements occur within a period of one (1) year after initial acceptance of such Improvements by City Council, the Developer shall promptly cause the needed repairs to be made without cost to the City. The provisions contained herein shall not be deemed to limit any rights Developer has or may have to seek damages or other relief from any acts or omissions of any contractor involved in the construction or design of the Improvements. Nothing herein shall be construed to limit any other warranties City may have from the manufacturer or any materials used in the Improvements nor in any way limit any rights of City in equity or law under this Agreement.

SECTION 14. Notice

Any notice, payment, or instrument required or permitted by this Agreement to either party shall be deemed to have been received when personally delivered to that party or seventy-two (72) hours following deposit of the same in any United States Post Office, first class, postage prepaid, addressed as follows:

City: Matt Cano, P.E., Deputy City Manager/Acting City Engineer Milpitas City Hall
455 East Calaveras Boulevard
Milpitas, CA 95035
Phone: 408-586-3012

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Developer: Caleb Roope, President and CEO
Pacific West Associates, Inc.
re: Milpitas Pacific Associates, L.P.
430 E State Street, Suite 100
Eagle, ID 83616

Any party hereto may, by notice given hereunder, designate a different address to which subsequent notices, payments, and instruments shall be delivered to it.

SECTION 15. Term

The term of this Agreement shall start as of the date first written above and shall remain in effect for a one-year term, unless extended by the parties by written agreement.

SECTION 16. Captions

Captions to Sections of this Agreement are for convenience purposes only and are not part of this Agreement.

SECTION 17. Severability

If any portion of this Agreement is declared by a court of competent jurisdiction to be invalid or unenforceable, such portion shall be deemed severed from this Agreement and the remaining parts shall remain in full effect as though such invalid or unenforceable provision had not been a part of this Agreement.

SECTION 18. Successors and Assigns/Reimbursements to Developer

This Agreement shall be binding upon and inure to the benefit of the successors and assigns of the parties hereto. The TASP Fee Reimbursement granted herein shall run with the land with respect to their application against the TASP Fees otherwise payable upon development of the Project.

SECTION 19. Governing Law Venue

This Agreement is made under, and shall in all respects be interpreted, enforced, and governed by the laws of the State of California. In the event of a dispute concerning the terms of this Agreement, the venue for any legal action shall be with the appropriate court in the County of Santa Clara, State of California.

SECTION 20. Indemnity

To the fullest extent permitted by law, Developer shall protect, indemnify, defend (with counsel acceptable to City) and hold City, its officers, employees, and agents harmless from and against any and all liability, loss, cost and obligations arising out of or resulting from any injury or loss caused directly or indirectly by any cause whatsoever in connection with or incidental to the (i) activities performed by Developer, its officers, employees, or agents under this Agreement, or (ii) negligence, omission or willful misconduct by Developer, its officers, employee, or agents.

SECTION 21. Time of Essence

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Time is of the essence in the performance of this Agreement.

SECTION 22. Waiver

Developer agrees that waiver by City of any breach or violation of any term, condition, or obligation of this Agreement shall not be deemed to be a waiver of any other term, condition, or obligation contained herein or a waiver of any subsequent breach or violation of the same term, condition or obligation.

SECTION 23. Compliance with Laws

Developer has been alerted to the requirements of California Labor Code Sections 1720 et seq. and 1770 et seq., which require the payment of prevailing wage rates and the performance of other requirements on certain “public works” and “maintenance” projects. If the work to be performed under this Agreement by Developer is being performed as part of an applicable “public works” or “maintenance” project, as defined by the Prevailing Wage Laws, Developer agrees to fully comply with such Prevailing Wage Laws. Developer shall defend, indemnify and hold City, its officials, officers, employees and agents free and harmless from any claims, liabilities, costs, penalties or interest arising out of any failure or alleged failure to comply with the Prevailing Wage Laws. It shall be mandatory upon Developer and its contractors to comply with all California Labor Code provisions, which include but are not limited to prevailing wages (Labor Code Sections 1771, 1774 and 1775), employment of apprentices (Labor Code Section 1777.5), certified payroll records (Labor Code Section 1776), hours of labor (Labor Code Sections 1813 and 1815), public works contractor registration (Labor Code Sections 1725.5 and 1771.1) and debarment of contractors and subcontractors (Labor Code Sections 1777.1). It shall be the sole responsibility of Developer to determine whether to comply with Prevailing Wage Laws for any or all work required by this Agreement. As a material part of this Agreement, Developer agrees to assume all risk of liability arising from any decision not to comply with Prevailing Wage Laws for work required by this Agreement.

SECTION 24. Entire Agreement

This Agreement contains the entire agreement between the parties with respect to the matters contained herein and may be amended only by subsequent written agreement signed by all parties.

SECTION 25. Counterparts

This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute one instrument.

[signatures on following page]
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8 34905\14361213.2
IN WITNESS WHEREOF, the parties hereto have executed this Agreement the day of the year first above written.

CITY:

By:

Ned Thomas
Acting City Manager

APPROVED AS TO FORM:

By: ________________________
Michael Mutalipassi
City Attorney

APPROVED AS TO CONTENT:

By: ________________________
Lauren Lai, CPA, MPA
Finance Director/Risk Manager

APPROVED AS TO CONTENT:

By: ________________________
Matt Cano, P.E.

Deputy City Manager/
Acting City Engineer
DEVELOPER:

By: TPC Holdings IX, LLC,
an Idaho limited liability company
Its: Co-Administrative General Partner

By: Pacific West Communities, Inc.
an Idaho corporation

By:

Name: Caleb Roope
Its: President and CEO

By: Kelley Ventures, LLC,
a California limited liability company
Its: Co-Administrative General Partner

By:

Name: Mike Kelley
Its: Manager

By: Central Valley Coalition
for Affordable Housing,
Its: Managing General Partner

By:

Name: Christina Alley
Its: Chief Executive Officer

NOTE: DEVELOPER’S SIGNATURES SHALL BE DULY NOTARIZED, AND APPROPRIATE

ATTESTATIONS SHALL BE INCLUDED AS MAY BE REQUIRED BY THE BYLAWS, ARTICLES

OF INCORPORATION, OR OTHER RULES OR REGULATIONS APPLICABLE TO DEVELOPER’S BUSINESS ENTITY.
255
Item # C10.

Exhibit “A”

256
Item # C10.

257
Item # C10.

Estimate
12" Water Main Replacement
308 Sango Ct
Milpitas, CA
Onsite and Oﬀsite Civil plans dated 5-31-2022
From
DACO Construction
General Engineering Contractor
117 Bernal Rd, ste 70-317
San Jose, CA, 95119
Oﬃce Phone : 408-606-3464
CSLB License #: 1004787
DIR Registration #: 1000034175
To
Paciﬁc West Builders
430 East State Street
Suite 100
Eagle, ID, 83616
Estimate No.
23-399
Date
Jul 12 2023
Estimate Valid Till
Aug 11 2023
Description AmountRateQuantity
Cut in new Tee with (2) valves at Sango Ct (Includes
ﬁttings to oﬀset the comms box. ) 1 ea
Tie into existing main at back of property and oﬀset to higher elevation 1 ea
Trench and install 12" c900 290 ft
Dispose of ACP pipe from tie in 1 ea
Price does not include any ARV
Assumes normal working hours and no ﬁre watch.

Spoils to stay on site per prime contract.

USD 179930.00179930.001
ADD ALT- Slurry abandoned AC pipe in place 1 ea USD 0.0016915.000 Sub Total 179,930.00
Total USD 179,930.00
Estimate Note
THERE IS CURRENTLY A MASSIVE SHORTAGE OF MATERIALS. ESPECIALLY PLASTIC PIPE. THIS SHORTAGE HAS THE PRICE OF MATERIALS SKYROCKETING AND SOMETIMES UNAVAILABLE. WE MAY NOT BE ABLE TO HOLD PRICING VERY LONG. -----DACO Currently has many bids out in the market with possible awards. Scheduling of work will be done on a ﬁrst come, ﬁrst served basis after contract is issued-----
Compensation. Client shall pay as set forth above. Price is subject to change, with customer's approval.

Invoicing & Payment. Invoice will be issued to Client upon completion of the Work. Client shall pay invoice within 30 days of Client's receipt of the invoice. Client shall also pay a late charge of 1-1/2% per month on all balances unpaid 30 days after the invoice date.

Exclusions Unless stated above this bid excludes any plans, permits, fees, de-watering (including any additional work associated with ground water), Locating utilities other than 811, special inspection costs, unforeseen circumstances, grinding of asphalt, hard slurry, rock, SWPP's, surveying and/or staking, irrigation/ landscape repair or hazardous materials. -Bid assumes that our current insurance policies and certiﬁcates are suﬃcient. If additional certiﬁcates or insurance is required the cost to be passed onto customer at +15%. All multi family residential shall be OCIP, WRAP or CCIP and our pricing reﬂects this. 258
Item # C10.
-Unless stated bid excludes slurry of roadway. If required, it will be bid at cost + 15% -If no Soils report or analytics provided, Assumes no shoring needed under 5' depth. -Bid does not include handling or disposal of ANY hazardous material (Water, soil, etc...). -Bid excludes soil oﬀ- haul unless states otherwise It is to go the facilities of our choosing (Must be clean materials). If Material is not clean it will be disposed of as cost +15%.
-Bid is for one move in unless speciﬁed diﬀerent above. -Water to be supplied by owner or general. Bid does not include importing water. -Depth of existing asphalt unknown. Bid is with understanding that parking lots are 4", minor roads(four lanes or less) 6" and major roads (more than four lanes) 12".
-Wet utilities MUST be installed before dry utilities. With any other installation schedule the customer assumes all extra costs. www.dacoconstructs.com
[email protected]
Jeﬀ@dacoconstructs.com
259
Item # C10.
1 Shaun Jolley
From: Jared Ajlouny <[email protected]>
Sent: Wednesday, July 12, 2023 2:45 PM
To: Shaun Jolley
Subject: Re: 308 Sango - 12" Main Replacement
Attachments: image001.jpg
I priced it to do a tie in at front and back same day. Doing a line tap is going to be issues. No way to restrain the pipe safely and it would be a size on size tap. Not good for AC pipe. _________________________
Jared Ajlouny
DACO Construction
General Engineering Contractor

(408) 390-3443 Cell
(408) 606-3464 Office
License 1004787
www.dacoconstructs.com

On Wed, Jul 12, 2023, 1:38 PM Shaun Jolley <
[email protected] > wrote:

And this includes a line tap for the back of the property to keep the water on as well correct?

Best,

Shaun Jolley | Project Manager
Pacific West Builders
C: 503.351.0620
D: 208.854.8190
O: 208.461.0022
430 E. State St., Suite 100
Eagle, ID 83616
The linked image cannot be displayed. The file may have been moved, renamed, or deleted. Verify that the link points to the correct file and location.

260
Item # C10.
2 [email protected] | www.tpchousing.com

The content of this email transmission, including any documents transmitted by or accompanying this email transmission, contains confidential information, belonging to the sender this is legally privileged.

This information is intended only for the use of the individual or entity named above. This email and its content may not be forwarded to any other recipient except as authorized by law. The recipient should check this email and any attachments for the presence of viruses. PWB accepts no liability for any damage caused by any virus transmitted by this email.

From: Jared Ajlouny < [email protected] >
Sent: Wednesday, July 12, 2023 2:17 PM
To: Shaun Jolley < [email protected] >
Subject: 308 Sango - 12" Main Replacement

See attached for pricing. It is just above the ROM I gave after the deduct.

Amount for main offset already in contract. $24,435.

$179,930-$24,435= $155,495
_________________________
Jared Ajlouny
DACO Construction
General Engineering Contractor

(408) 390-3443 Cell
(408) 606-3464 Office
License 1004787
www.dacoconstructs.com
261
Item # C10.

City of Milpitas, California

BUDGET CHANGE FORM

From (Credit) To (Debit)
Type of Change

Account

Amount

Account

Amount
Check one:

 Budget
Appropriation
 Budget Transfer

350-3718

$153,000

350-951-4841

$153,000

Recommendation: (1) Authorize the City Manager to execute the Fee Reimbursement Agreement for Transit Area Specific Public Facilities and Public Improvements at the 308 Sango Court Project by Milpitas Pacific Associates, L.P.; and (2) Approve budget appropriation in the amount of $153,000.00 to the non-departmental operating budget in the TASP fund.

BACKGROUND:

On August 5, 2021, the City Council approved a Site Development Permit No. SD19 -0014, Density Bonus Permit No.

DB19-0001, Tree Removal Permit No. TR19-0029 and Environmental Assessment No. EA19-0007 to allow demolition of an existing industrial building, removal of three protected trees, and development of a multi -family residential building, up to 77 feet (six stories) in height, with up to 85 dwelling units (100% affordable), a ground-floor parking garage with up to 48 vehicles spaces, and 20,788 square feet of public and private open space on a 1.11 -acre parcel located at 308 Sango Court (APN 086-36-036) within the Milpitas Metro Specific Plan area.

Projects within the TASP area are required to pay TASP Development Impact Fees (TASP Fee) to be used for design and construction of certain public facilities and improvements within the TASP area. In addition to the construction of the required TASP improvements for the project, the City requested the Developer to also replace an existing 12-inch domestic water main within an existing 10-PSUE along the western edge of the property. The location of the existing water main in relation to the final configuration of the proposed above-ground facilities for the 308 Sango Court Residential Project would make it very difficult for the City to replace the water line without incurring a significant cost in the future. The water main replacement will serve more than the Developer’s properties within the TASP Area. The developer will be reimbursed a percentage of the actual cost to replace the water main, which is estimated not to exceed $153,000 from the TASP Fund.

A Fee Reimbursement Agreement is proposed to allow for the reim bursement against the TASP Fund paid by the Developer for replacement of the existing 12” Domestic Water Main. The Fee Reimbursement Agreement has been reviewed by the City Attorney as to form.

ANALYSIS:

Staff recommends the City Council grant authorization to the City Manager to execute the Fee Reimbursement Agreement for the construction of the TASP Public Improvements. The Developer will be reimbursed for a percentage, up to 85%, of the actual cost for the construction of the new public improvements eli gible for reimbursement for the design and construction of the new 12 inch domestic water main line that runs along the entire site western public service utility easement, which are estimated not to exceed $153,000.

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Item # C10.

POLICY ALTERNATIVE(S):

Alternative 1:

Do not approve granting authorization to the City Manager to approve the Fee Reimbursement Agreement Amendment.

Pros: None

FISCAL IMPACT:

California Environmental Quality Act (CEQA):

RECOMMENDATION:

Authorize the City Manager to Execute the Fee Reimbursement Agreement for Transit Area Specific Public Facilities and Public Improvements at the 308 Sango Court Project by Milpitas Pacific Associates, L.P. Approve bu dget appropriation of $153,000 to the non-departmental operating budget in the TASP fund.

Attachment(s):

Attachment 1: Fee Reimbursement Agreement
Attachment 2: Budget Change Form

 Check if City Council Approval required. Meeting: August 15, 2023

Requested by: Department Head: Roberto Alonzo Date:

Reviewed by: Finance Director: Lauren Lai Date:

Approved by: Acting City Manager: Ned Thomas Date:

Date approved by City Council, if required: Confirmed by:

FI/24786/V Form 30-222 (Rev. 1/92)
263
Item # C10.

CITY OF MILPITAS

AGENDA REPORT
(AR)

Item Title: Receive and Review the FY 2022-23 Annual Report of Sole Source Contracts Lauren Lai, Finance Director, 408-586-3111
Category: Consent Calendar-Leadership and Support Services Meeting Date: 8/15/2023
Recommendation: Receive and Review the FY 2022-23 Annual Report of Sole Source Contracts

BACKGROUND:

The Purchasing Agent is authorized by the City’s municipal code to make sole source determinations after conducting a good faith review of available sources and concluding that only one procurement source (vendor) for the desired product or service is available. Following past practice, the Purchasing Agent approves sole source purchases up to $100,000.00 and the Council approves sole source purchases above $100,000.00 based on the Purchasing Agent’s recommendation.

Per Title I, Chapter 2, Section 3.06 of the Milpitas Municipal Code, staff shall provide annually to the City Council a list of all sole source contracts executed or renewed during the past fiscal year not later than August 31. This agenda report transmits the information required in an attached list of sole source purchases and renewals including department, short product description, vendor name, and dollar amount.

ANALYSIS:

During the reporting period, 22 sole source contracts or purchase orders amounting to $859,086.79 were entered into or renewed on behalf of six departments. The attached report groups contracts or purchase orders executed or renewed by department and provides relevant information for items such as the department, short product description, vendor name, and dollar amount.

Sole Source purchases are approved for various reasons. Some of these reasons are outlined below with some examples for these Sole Source purchases and the vendors’ name in parenthesis.

1) The product is a “one of a kind,” the manufacturer, distributor, or company is the only authorized source for the product or service. Notable example: Online investigative database (LexisNexis)

2) The sole source justification is based on matching existing equipment for the proper operation of the equipment or City Program. Notable example: Stryker LifePak 15 Monitor/Defibrillators (Stryker Medical)

POLICY ALTERNATIVE(S):

Alternative 1:

Pros: Receiving the report by August 31 annually is in compliance with Muni Code Section I-2-3.06 Sole Source Procurement
Cons: Not receiving the report would not be in compliance with Muni Code Section I-2-3.06 Sole Source Procurement
Reason for Not Recommending: It is in the City’s best interest to not be out of compliance with Muni Code Section I-2-3.06 Sole Source Procurement

FISCAL IMPACT:

There is no fiscal impact to receive this informational report.

California Environmental Quality Act (CEQA): 264
Item # C11.

The action being considered has no potential for causing a significant effect on the environment and is exempt from The California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 1561 (b)(3).

RECOMMENDATION:

Receive and review the FY 2022-23 annual Sole Source Report

Attachment(s):

FY 2022-23 Sole Source Report

265
Item # C11.

Department Description Vendor Amount
Engineering Delano Manongs Park Sign EnviroSigns $10,935.63 Total $10,935.63
Finance Business License and Transient Occupancy
Tax On-line Filing and Payment HdL $21,085.46
Total $21,085.46
Fire F 550 Fire Vehicle City of San Jose $12,500.00
Fire Intterra Reporting and Analytics Intterra $15,000.00 Fire Milpitas Fire Policy Manual Lexipol LLC $11,289.83 Fire Annual license for (CPR/ first responder
civilian app) Pulse Point $8,000.00
Total $46,789.83
IT Drivve OCR Software MRC Smart Technology
Solutions
$58,573.37
Total $58,573.37
Police Officer Safety Plan 7 Axon Enterprise, Inc. $182,635.80 Police LifePak 15 V4 Monitor/ Defibrillators Stryker Sales Corp $220,107.43 Police KBT Breaching Tool Aardvark $11,435.47
Police SIONICS Rifles with Accessories Sionics Weapon Systems $12,620.78 Police Range Maintenance Action Target $35,000.00
Police NIJ Level III Ballistic Shields Galls $18,233.65 Police Firearm Suppressors TI Fighter Industries $19,906.37 Police SpeakWrite VoiceReports SpeakWrite $16,100.00
Police International Business Information
Technologies, Inc. dba LEFTA Systems
LEFTA $7,755.00
Police Online Investigative Database Lexis Nexis $2,300.00 Police Automated License Plate Reader Flock Group $117,500.00 Police ADACS Monitor Upgrades SyTech $10,308.00
Total $653,902.50
Public Works Monoclor RCS Trailer Rental PSI Water Technology $38,880.00 Public Works SmartLevel Monitoring System Hadronex, Inc. dba SmartCover Systems
$10,920.00
Public Works Subscription and Training SeeClickFix, Inc $18,000.00 Total $67,800.00
Grand Total $859,086.79
$520,243.23Over $100,000.00
Under $100,000.00 $338,843.56
FY 22-23 Annual Sole Source Report
266
Item # C11.

CITY OF MILPITAS

AGENDA REPORT
(AR)

Item Title: Adopt a Resolution Approving the City of Milpitas Investment Policy for Fiscal Year 2023-24 (Staff Contact: Lauren Lai, Finance Director, 408-586-3111) Category: Consent Calendar-Leadership and Support Services Meeting Date: 8/15/2023
Recommendation: Adopt a resolution of the City of Milpitas approving the Investment Policy for FY 2023-24

BACKGROUND:

California state law regarding the investment of public funds requires all local agencies to develop an investment policy that must be considered annually by the legislative body of the local agency at a public meeting. Staff works closely with the City’s investment advisor, Chandler Asset Management, to review and update the City’s investment policy for Council consideration, ensuring that the policy captures the latest changes to California Government Code as well as best practices. Chandler Asset Management manages approximately $33 billion, primarily comprising California local governments. Chandler has been working with local governments for over 30 years. Therefore, the Investment Policy (the Policy) for the City of Milpitas is submitted for Council’s annual review and approval.

ANALYSIS:

Staff and the City’s investment advisor collaborated in reviewing the City’s current Investment Policy and determined that the Policy continues to be in compliance with the provisions of the California Government Code (Code), Sections 16340, 16429.1-16429.4 and 53600-53686, the authority governing investments for municipal governments. There were changes to the statutes that govern the City’s investments as a result of the State’s adoption of Senate Bill 1489. Senate Bill 1489 specifies, among other changes, that the term to maturity of any investment shall be measured from the date of trade settlement rather than the trade date. The City has already measured maturity as prescribed in the Bill. Moreover, the Bill modifies the amount of time City staff has to submit quarterly reports to the City Council from 30 to 45 days. This is the sole change staff and the City’s investment advisor are recommending the City adopt for fiscal year 2023-24.

FISCAL IMPACT:

None – There is no fiscal impact as a result of the changes recommended to the policy.

California Environmental Quality Act (CEQA):

The action is a fiscal activity of the City government or an action to create a City government funding mechanism that does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment and is not a project pursuant to Cal. Code of Regs., tit. 14, § 15378.

RECOMMENDATION:

Adopt a resolution of the City of Milpitas approving the Investment Policy for FY 2023-24.

Attachment(s):

1. Draft Resolution

2. Investment Policy (clean version)
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1 RESOLUTION NO. _____________

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MILPITAS APPROVING THE INVESTMENT POLICY FOR FISCAL YEAR 2023/2024

WHEREAS, the Legislature of the State of California has declared that the deposit and investment of public funds by local officials and local agencies is an issue of statewide concern; and

WHEREAS, the legislative body of a local agency may invest surplus monies n ot required for the immediate needs of the local agency in accordance with the provisions of California Government Code Section 53601 et seq.; and

WHEREAS, the Treasurer of the local agency shall annually prepare and submit a statement of investment policy and such policy, and any changes thereto, shall be considered by the legislative body at a public meeting; and

WHEREAS, the Investment Policy was last rev iewed and approved by the City Council pursuant to Resolution No. 9188 on August 16, 2022.

NOW, THEREFORE, the City Council of the City of Milpitas hereby finds, determines, and resolves as follows:

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

2. The City Council has reviewed and considered the Investment Policy, including any changes, attached hereto as Exhibit A, and the Investment Policy for Fiscal Year 2023/2024 is hereby approved.

PASSED AND ADOPTED this ___ day of ___________, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

ATTEST: APPROVED:

_____________________________________ ____________________________ Suzanne Guzzetta, City Clerk Carmen Montano, Mayor

APPROVED AS TO FORM:

_____________________________________
Michael Mutalipassi, City Attorney
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1 Exhibit A

CITY OF MILPITAS
INVESTMENT POLICY-Fiscal Year 2023-24

PURPOSE
The purpose of this policy is to establish overall guidelines for the management and investment of the City of Milpitas (the City) unexpended funds under authority granted by the City Council. This policy is in compliance with the provisions of the California Government Code, Sections 16340, 16429.1- 16429.4, and 53600-53686, the authority governing investments for municipal governments.

INVESTMENT OBJECTIVES
The primary objectives of this investment policy, in order of priority, are safety, liquidity, and return:

1) Safety - Safety of principal is the foremost objective of the investment program. Investments shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. This objective shall be accomplished by mitigating credit risk and market risk. 2) Liquidity - The investment portfolio shall remain sufficiently liquid to meet all operating requirements that may be reasonably anticipated. This objective shall be accomplished by structuring the portfolio so that securities mature concurrently with anticipated needs. The portfolio shall consist largely of securities with active secondary or resale market. Furthermore, a portion of the portfolio may be placed in money market funds or Local Agency Investment Fund (LAIF) which offer same day liquidity for short term investment.
3) Return - The investment portfolio is designed with the objective of attaining a market rate of return throughout budgetary and economic cycles, taking into consideration the investment risk constraints and liquidity needs. Return on investment is of secondary importanc e compared to the safety and liquidity objectives described above. The core of investments is limited to relatively low risk securities in anticipation of earning a fair return relative to the risk being assumed. Nevertheless, investment performance shall be continually monitored and evaluated by the City Treasurer by comparison with other investment portfolio benchmarks.

Additionally, investments are to be made that will bear in mind the responsibility of City government to its citizens. The following inve stment considerations, which enhance the quality of life, will be adhered to:
 Divestment From Publicly-Traded Fossil Fuel Companies - The City of Milpitas has a responsibility to protect the lives and livelihoods of its inhabitants from the threat of climate change. The City believes that its investments should support a future where all citizens can live healthy lives without the negative impacts of a warming environment. For the purposes of the Investment Policy, a "fossil fuel company" shall be defined as any of the two hundred publicly-traded companies with the largest coal, oil and gas reserves as measured by the

POLICY OVERVIEW
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2 gigatons of carbon dioxide that would be emitted if those reserves were extracted and burned, as listed in the Carbon Tracker Initiative's "Unburnable Carbon" report. Staff responsible for managing the City's investment portfolio are directed to divest all City investment funds held in fossil fuel companies once they reach their maturities and are prohibited from making any new investments in such companies.

SCOPE
The investment policy applies to all financial assets of the City of Milpitas as accounted for in the Annual Comprehensive Financial Report (ACFR), including but not limited to the funds listed below:
 General Fund
 Special Revenue Funds
 Capital Projects Funds
 Debt Service Fund
 Enterprise Funds
 Internal Service Fund
 Trust and Agency Funds
 Any new fund created by the City Council unless specifically exempted with the exception of the following:

1) The City's Deferred Compensation Plan is excluded because it is managed by a third- party administrator and invested by individual plan participants. 2) Proceeds of debt issuance shall be invested in accordance with the investment objectives of this policy. However, such proceeds are generally invested in accordance with permitted investment provisions of their specific bond indentures. If the City Treasurer determines that the matching of bond reserve fund with the maturity schedule of an individual bond issue is prudent, the investment policy authorizes extending beyond the five year maturity limitation as outlined in this document.

STANDARDS OF CARE
1) Prudence - Pursuant to California Government Code, Section 53600.3, all persons authorized to make investment decisions on behalf of the City are trustees and therefore fiduciaries subject to the Prudent Investor Standard:
“…all governing bodies of local agencies or persons authorized to make investment decisions on behalf of those local agencies investing public funds pursuant to this chapter are trustees and therefore fiduciaries subject to the prudent investor standard. When investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the Agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the Agency.

Within the limitations of this section and considering individual investments as part of an overall strategy, investments may be acquired as authorized by law.” The City Treasurer and other individuals assigned to manage the investment portfolio, acting within the intent and scope of the investment policy and other written procedures and exercising due diligence, shall be relieved of personal responsibility and liability for an individual 270
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3 security's credit risk or market price changes, provided deviations from expectations are reported in a timely manner and appropriate action is taken to control adverse developments. 2) Ethics and Conflict of Interest - Officers and employees involved in the investment process shall refrain from personal business activity that could conflict with proper execution of the investment program or could impair their ability to make impartial investment decisions. City employees involved in the investment process shall disclose to the City Manager any material financial interest in financial institutions that conduct business within the jurisdiction. They shall further disclose any large personal financial/investment positions that could affect the performance of the investment portfolio. 3) Delegation of Authority - Authority to manage the investment program is derived from California Government Code, Sections 41006 and 53600 et seq and granted to the City Treasurer by Section VI- 1-3.04 of the City of Milpitas Municipal Code. Under the oversight of the City Treasurer, responsibility for the operation of the investment program may be delegated to the Finance Administration staff, who shall act in accordance with established written procedures and internal controls consistent with the investment policy. The City Treasurer shall be responsible for all transactions undertaken and shall establish a system of controls to regulate the activities of the subordinate staff members. The system of internal controls includes separation of duties, custodial safekeeping, avoidance of physical delivery securities, development of wire transfer agreement, and clear delegation of authority to subordinate staff members. The City may engage the services of one or more external investment advisers, who are registered under the Investment Advisers Act of 1940, to assist in the management of the City’s investment portfolio in a manner consistent with the City’s objectives. External investment advisers may be granted discretion to purchase and sell investment securities in accordance with this investment policy. The City’s overall investment program shall be designed and managed with a degree of professionalism that is worth y of the public trust. The City recognizes that in a diversified portfolio, occasional measured losses may be inevitable and must be considered within the context of the overall portfolio’s return and the cash flow requirements of the City.

INVESTMENT PARAMETERS
1) Maximum Maturities - To the extent possible, the City shall attempt to match its investments with anticipated cash flow requirements. Unless matched to a specific cash flow, the City will not directly invest in securities maturing more than five (5) years from the date of trade settlement. The intent to invest in securities beyond the five year maturity limitation shall be disclosed in writing to the City Council no less than 3 months prior to the investment. Res erve funds established by the issuance of bonds and other funds with longer-term investment horizons may be invested in securities exceeding five years if the maturity of such investments are made to coincide with the expected use of funds.

Competitive Bidding - It is the policy of the City to require that, where possible, all transactions with broker/dealers shall be selected on a competitive basis and their bid or offering prices shall be recorded. If there is no other readily available competitive offering, best efforts will be made to document quotations for comparable or alternative securities. When purchasing original issue instrumentality securities, no competitive offerings will be required as all dealers in the selling group offer those securities at the same original issue price.

INVESTMENT GUIDELINES
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4 PERFORMANCE EVALUATION/BENCHMARK
 The investment portfolio shall be designed to attain a market -average rate of return throughout budgetary and economic cycles, taking into account the City’s risk constrain ts, the cash flow characteristics of the portfolio, and state and local laws, ordinances or resolutions that restrict investments. Investment performance is continually monitored and evaluated by the City Treasurer.

Investment performance statistics and activity reports are prepared on a quarterly basis for presentation to the City Manager and City Council within 30 days of the end of the quarter.  The City Treasurer shall select an appropriate, readily available index to use as a market benchmark.

The benchmark should be commensurate with the level of market risk of the portfolio, and should serve as a measure of risk, interest income, and fair value appreciation. Samples of readily available benchmarks include Intercity Exchange/Bank of America/Merrill Lynch 1 -3 Year or 1 -5 Year Treasury Indices.

SAFEKEEPING OF SECURITIES
 To protect against fraud or embezzlement or losses caused by collapse of an individual securities dealer, all securities owned by the City shall be held in safekeeping by a third party bank trust department, acting as agent for the City under the teams of a custody agreement or master repurchase agreement. All trades executed by a dealer will settle delivery vs. payment (DVP) through the City's safekeeping agent.
 Securities held in custody for the City shall be reviewed and verified quarterly by Finance staff who has not been assigned to the investment function.

INTERNAL CONTROL
The City Treasurer is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the City are protected from loss, theft or misuse. The internal control structure shall be designed to provide reasonable assurance that these objectives are met. The concept of reasonable assurance recognizes that the cost of a control should not exceed the benefits to be derived and that the valuation of costs and benefits requires estimates and judgments by management.

The internal controls shall address the following points:
 Control of collusion
 Separation of transaction authority from accounting and record keeping  Custodial safekeeping
 Avoidance of physical delivery securities
 Clear delegation of authority to subordinate staff members  Written confirmation of transactions for investments and wire transfers  Development of a wire transfer agreement with the lead bank and third party custodian

REPORTING
The City Treasurer shall review and render quarterly reports to the City Manager and City Council which shall include the par and dollar amount of the investment, the classification of the investment, the percentage of the total portfolio which each type of investment represents, the name of the institution or entity, the rate of interest, the maturity date, the current market value, and the source of the market value.
 Statement that the projected cash flow is adequate to meet expected obligations over the next six months.
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5  A report of transactions by month.
 The weighted average maturity of the investment portfolio.  The average weighted yield to maturity of the portfolio as compared to the applicable benchmark.  Statement of compliance with the investment policy.
 The report is due within 45 days of the end of the quarter.  The City Manager may, at his discretion, require this reporting on a monthly basis based upon market conditions.

QUALIFIED BROKER/DEALERS
 The City shall transact business with financial institutions and security broker/dealers after careful review of their qualifications and creditworthiness. All dealers who desire to do business with the City shall provide the necessary information (e.g. audited financial statements, proof of state registration, proof of National Association of Securities Dealers certification, etc.) from which the City can determine their creditworthiness, the existen ce of any pending legal action against the firm or the individual broker as well as an understanding of the security markets that they service. The City Treasurer shall annually send a copy of the current investment policy to all financial institutions and broker/dealers approved to do business with the City. Confirmation of receipt of this policy shall be considered evidence that the dealer understands the City's investment policies and intends to sell the City only appropriate investments authorized by this investment policy.  In accordance with California Government Code Section 53601.5, Any investment authorized pursuant to Section 53601 or 53601.1, not purchased directly from the issuer, shall be purchased either from an institution licensed by the sta te as a broker -dealer, as defined in Section 25004 of the Corporations Code, or from a member of a federally regulated securities exchange, from a national or state-chartered bank, from a savings association or federal association (as defined by Section 5102 of the Financial Code) or from a brokerage firm designated as a primary dealer by the Federal Reserve bank.
 Selection of financial institutions and broker/dealers authorized to engage in transactions will be at the sole discretion of the City, except where the City utilizes an external investment adviser in which case the Agency may rely on the adviser for selection.

COLLATERAL REQUIREMENTS
Collateral is required for investments in non-negotiable certificates of deposit and repurchase agreements.

In order to reduce market risk, the collateral level shall be at least 102% of market value of principal and accrued interest and marked-to-market weekly. Securities acceptable as collateral shall be the direct obligations of or are fully guaranteed as to principal and interest by the United States or any agency of the United States.

The City shall require any bank or financial institution to comply with the collateralization criteria defined in California Government Code, Section 53651.

AUTHORIZED INVESTMENTS
Investment of City funds is governed by the California Government Code, Sections 16340, 16429.1- 16429.4, and 53600-53686. Within the context of the limitations, the following investments are authorized, as further limited herein. In the event a discrepancy is found between this policy and the Code, the more restrictive parameters will take precedence. Percentage holding limits and minimum 273
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6 credit quality requirements listed in this section apply at the time the security is purchased.

Any investment currently held at the time the policy is adopted which does not meet the new policy guidelines can be held until maturity and shall be exempt from the current policy. At the time of the investment’s maturity or liquidation, such funds shall be reinvested only as provided in the current policy.

An appropriate risk level shall be maintained by primarily purchasing securities that are of high quality, liquid, and marketable. The portfolio shall be diversified by security type and institution to avoid incurring unreasonable and avoidable risks regarding specific security types or individual issuers. 1) United States Treasury Bills, Bonds, and Notes or those for which the full faith and credit of the United States are pledged for payment of principal and interest. There is no percentage limitation of the portfolio which can be invested in this category, though a five year maturity limitation is applicable.

2) Federal Agency Obligations or United States Government-Sponsored Enterprise (GSE) obligations, participations, or other instruments, including those issued by or fully guaranteed as to principal and interest by federal agencies or Unites States government sponsored enterprises. There is no percentage limitation of the portfolio which can be invested in this category, although a five year maturity limitation is applicable. Additionally, no more than 30% of the portfolio may be invested in any single Agency/GSE issuer, and the maximum percent of agency callable securities in the portfolio will be 20%.

3) Banker’s Acceptances- Bills of exchange or time drafts drawn on and accepted by commercial banks, otherwise known as banker's acceptances. Banker’s acceptances must be issued by institutions which have short -term debt obligations rated “A -1” or its equivalent or better by at least one nationally recognized statistical rating organization (NRSRO), or long -term debt obligations which are rated in a rating category of “A” or its equivalent or better by at least one NRSRO. Purchase of banker's acceptances may not exceed 180 days maturity or 40% of the value of the portfolio. Furthermore, no more than 5% of the value of the portfolio may be invested in the banker's acceptances of any one commercial bank.

4) Commercial Paper of the highest letter and number rating as provided by at least one NRSRO, either:

 Issued by general corporations organized and operating within the United States, having assets in excess of $500,000,000 and having a rating in the rating category of "A" or its equivalent or better rating on debt other than commercial paper as provided by at least one NRSRO, or  Issued by entities organized within the United States as a special purpose corporation, trust, or limited liability company. The securities must have program-wide credit enhancements including, but not limited to, overcollateralization, letters of credit, or a surety bond. The securities must by rated “A-1” or its equivalent or better by at least one NRSRO.

Purchases of eligible commercial paper may not exceed 270 days maturity nor represent more than 10% of the outstanding paper of the issuing corporation. Purchases of commercial paper may not exceed 25% of the value of the portfolio. No more than 5% of the portfolio may be invested in any single issuer. Under a provision sunsetting on January 1, 2026, no more than 40% of the portfolio may be invested in Commercial Paper if the City’s investment assets under management are greater than $100,000,000.

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7 5) Negotiable Certificates of Deposit issued by nationally or state chartered banks, a savings association or a federal association, a state or federal credit union, or by a federally -licensed or state-licensed branch of a foreign bank. Purchases of negotiable certificates of deposit may not exceed 30% of the value of the portfolio. No more than 5% of the portfolio may be invested in any single issuer. A maturity limitation of five years is applicable. The amount of the NCD insured up to the FDIC limit does not require any credit ratings. Any amount above the FDIC insured limit must be issued by institutions which have short-term debt obligations rated “A-1” or its equivalent or better by at least one NRSRO; or long-term obligations rated in a rating category of “A” or its equivalent or better by at least one NRSRO.

6) Repurchase Agreements - Repurchase agreements collateralized with securities authorized under in accordance with California Government Code Section 53601(j). There are no limits on the dollar amount or percentage that the City may invest. The matur ity of the repurchase agreements shall not exceed one year. The market value of the securities used as collateral for the repurchase agreements shall be monitored by the investment staff weekly and shall not be allowed to fall below 102% of the value of the repurchase agreement. A Master Repurchase agreement is required between the City and the dealer for all repurchase agreements transacted.

7) Time Deposits - Time deposits, non-negotiable and collateralized in accordance with the California Government Code, may be purchased through banks or savings and loan associations. A maturity limitation of five years is applicable.

8) Medium-Term Corporate Notes issued by corporations organized and operating within the United States or by depository institutions licensed by the United States or any state and operating within the United States with a maximum maturity of five years may be purchased. Securities eligible for investment shall be rated in a rating category of "A" or its equivalent better by at least one NRSRO.

Purchase of medium-term notes may not exceed 30% of the value of the portfolio and no more than 5% of the value of the portfolio may be invested in notes issued by one corporation.

9) Local Agency Investment Fund (LAIF) - a State of California managed investment pool may be used up to the maximum permitted in accordance with California Government Code Section 16429.1.

10) Money Market Funds - Money Market funds invested in U.S. Government securities are permitted under this policy and under the California Government Code Section 53601. In order to be eligible for investment under this section, an investment objective of such a fund must be the maintenance of a price per share of $1.00. Investment in such funds shall not exceed 20% of the City's total portfo lio and no more than 10% of the City's total portfolio may be invested in any one money market fund. In addition, either one of the following criteria must be met:
 The fund shall have achieved a rating of "AAA" by at least two nationally recognized statistical rating organizations, or
 The fund shall have retained an advisor who is registered or exempt from registration with the Security Exchange Commission with not less than five years' experience managing money market funds with assets under management in excess of five hundred million dollars ($500,000,000).

11) Municipal Securities – including obligations of the City, the State of California, and any local agency within the State of California, provided that:
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8  The securities are rated in a rating category of “A” or its equivalent or better by at least one nationally recognized statistical rating organization (“NRSRO”).  No more than 5% of the portfolio may be invested in any single issuer.  No more than 30% of the portfolio may be in Municipal Securities.  The maximum maturity does not exceed five (5) years.

12) Municipal Securities (Registered Treasury Notes or Bonds) of any of the other 49 states in addition to California, including bonds payable solely out of the revenues from a revenue -producing property owned, controlled, or operated by a state or by a department, board, agency, or authority of any of the other 49 states, in addition to California., provided that:
 The securities are rated in a rating category of “A” or its equivalent or better by at least one nationally recognized statistical rating organization (“NRSRO”).  No more than 5% of the portfolio may be invested in any single issuer.  No more than 30% of the portfolio may be in Municipal Securities.  The maximum maturity does not exceed five (5) years.

13) Asset-Backed, Mortgage-backed, Mortgage Passthrough Securities, and Collateralized Mortgage Obligations From Issuers Not Defined In Sections 1 And 2 of the Authorized Investments Section of this Policy, provided that:
 The securities are rated in a rating category of “AA” or its equivalent or better by a NRSRO.  No more than 20% of the total portfolio may be invested in these securities.  No more than 5% of the portfolio may be invested in any single Asset -Backed or Commercial Mortgage security issuer.
 The maximum legal final maturity does not exceed five (5) years.

14) Collateralized Bank Deposits —City’s deposits with financial institutions will be collateralized with pledged securities per California Government Code, Section 53651. There are no limits on the dollar amount or percentage that the City may invest in collateralized bank deposits.

15) Supranational Securities—provided that Issues are US dollar denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development, International Finance Corporation, or Inter-American Development Bank. The securities must be rated in a rating category of “AA” or its equivalent or better by a NRSRO.

No more than 30% of the total portfolio may be invested in these securities. No more than 10% of the portfolio may be invested in any single issuer. The maximum maturity does not exceed five (5) years.

INELIGIBLE INVESTMENTS AND INVESTMENT PRACTICES
Ineligible investments are those that are not described herein, including but not limited to, common stocks, reverse repurchase agreements, inverse floaters, range notes, mortgage derived interest only strips, derivatives securities, or any security that could result in zero interest accrual. Under a provision sunsetting on January 1, 2026, securities backed by the U.S. Government that could result in a zero- or negative-interest accrual if held to maturity are permitted. Trading securities for the sole purpose of speculating on the future direction of interest rates is prohibited. Purchasing or selling securities on margin is prohibited. The use of reverse repurchase agreements, securities lending or any other form of borrowing or leverage is prohibited. The purchase of foreign currency denominated securities is prohibited.

RISK MANAGEMENT AND DIVERSIFICATION
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9 Mitigating Credit Risk in the Portfolio: Credit risk is the risk that a security or a portfolio will lose some or all its value due to a real or perceived change in the ability of the issuer to repay its debt.

The City will mitigate credit risk by adopting the following strategies:
 The diversification requirements included in the “Authorized Investments” section of this policy are designed to mitigate credit risk in the portfolio.  No more than 5% of the total portfolio may be deposited with or invested in securities issued by any single issuer unless otherwise specified in this policy.  The City may elect to sell a security prior to its maturity and record a capital gain or loss in order to manage the quality, liquidity or yield of the portfolio in response to market conditions or City’s risk preferences.
 If a security owned by the City is downgraded to a level below the requirements of this policy, making the security ineligible for additional purchases, the following steps will be taken:
• Any actions taken related to the downgrade by the investment manager will be communicated to the City Treasurer in a timely manner. • If a decision is made to retain the security, the credit situation will be monitored and reported to the City Council as part of the Quarterly Investment Report.

Mitigating Market Risk in the Portfolio: Market risk is the risk that the portfolio value will fluctuate due to changes in the general level of interest rates. The City recognizes that, over time, longer-term portfolios have the potential to achieve higher returns. On the other hand, longer-term portfolios have higher volatility of return. The City will mitigate market risk by providing adequate liquidity for short-term cash needs, and by making longer-term investments only with funds that are not needed for current cash flow purposes.

The City further recognizes that certain types of securities, including variable rate securities, securities with principal paydowns prior to maturity, and securities with embedded options, will affect the market risk profile of the portfolio differently in different interest rate environments. The City, therefore, adopts the following strategies to control and mitigate its exposure to market risk:
 The City will maintain a minimum of six months of budgeted operating expenditures in short term investments to provide sufficient liquidity for expected disbursements.  The maximum stated final maturity of individual securities in the portfolio will be five (5) years, except as otherwise stated in this policy.  The duration of the portfolio will generally be approximately equal to the duration (typically, plus or minus 20%) of a Market Benchmark as described in the Performance Evaluation/Benchmark section of this policy; an index selected by the City based on the City’s investment objectives, constraints and risk tolerances.

INVESTMENT POOLS/MUTUAL FUNDS
The Agency shall conduct a thorough investigation of any pool or mutual fund prior to making an investment, and on a continual basis thereafter. The Treasurer shall develop a questionnaire which will answer the following general questions:
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10  A description of eligible investment securities, and a written statement of investment policy and objectives.
 A description of interest calculations and how it is distributed, and how gains and losses are treated.
 A description of how the securities are safeguarded (including the settlement processes), and how often the securities are priced and the program audited.  A description of who may invest in the program, how often, what size deposit and withdrawal are allowed.
 A schedule for receiving statements and portfolio listings.  Are reserves, retained earnings, etc. utilized by the pool/fund?  A fee schedule, and when and how is it assessed.
 Is the pool/fund eligible for bond proceeds and/or will it accept such proceeds?

INTEREST EARNINGS
All moneys earned and collected from investments authorized in this policy shall be allocated monthly to various fund accounts based on the cash balance in each fund as a percentage of the entire pooled portfolio.

ANNUAL POLICY APPROVAL
The City's investment policy shall be adopted by resolution of the City Council on an annual basis. This investment policy shall be reviewed at least annually to ensure its consistency with the overall objectives of preservation of principal, liquidity and yield, and its relevance to current law and financial and economic trends. Any amendments to the policy shall be forwarded to City Council for approval.

Accrued Interest- Interest earned but not yet received.

Active Deposits- Funds which are immediately required for disbursement.

Amortization- An accounting practice of gradually decreasing (increasing) an asset's book value by spreading its depreciation (accretion) over a period of time.

Arbitrage- Transactions by which securities are bought and sold in different markets at the same time for the sake of the profit arising from a yield difference in the two markets.

Asked Price- The price a broker dealer offers to sell securities.

Banker's Acceptance- A high quality, short term money market instrument used to finance international trade. There has never been an instance of a failure to pay a banker's acceptance in full at its maturity date.

Basis Point- One basis point is one hundredth of one percent (.01).

GLOSSARY OF TERMS
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11 Bid Price- The price a broker dealer offers to purchase securities.

Bond- A financial obligation for which the issuer promises to pay the bondholder a specified stream of future cash flows, including periodic interest payments and a principal repayment.

Book Value- The value at which a debt security is shown on the holder's balance sheet. Book value is acquisition cost less amortization of premium or accretion of discount.

Broker- Someone who brings buyers and sellers together and is compensated for his/her service.

Certificate of Deposit- A deposit insured up to $250,000 by the FDIC at a set rate for a specified period of time.

Collateral- Securities, evidence of deposit or pledges to secure repayment of a loan. Also refers to securities pledged by a bank to secure deposit of public moneys.

Commercial Paper- Short-term, negotiable unsecured promissory notes of corporations.

Annual Comprehensive Financial Report (ACFR)- The official annual financial report for the City, prepared in conformity with Generally Accepted Accounting Principles (GAAP).

Coupon- The annual rate of interest that a bond's issuer promises to pay the bondholder on the bond's face value.

Credit Risk - Defined as the risk of loss due to failure of the issuer of a security.

Current Yield- The interest paid on an investment expressed as a percentage of the current price of the security.

Custodian- A bank or other financial institution that keeps custody of stock certificates and other assets.

Defeased Bond Issues- Issues that have sufficient money to retire outstanding debt when due so that the agency is released from the contracts and covenants in the bond document.

Delivery vs. Payment (DVP) - Delivery of securities with a simultaneous exchange of money for the securities.

Derivative- Securities that are based on, or derived from, some underlying asset, reference date, or index.

Discount- The difference between the cost of a security and its value at maturity when quoted at lower than face value.

Diversification- Dividing investment funds among a variety of securities offering independent returns and risk profiles.

Duration- A measure of the timing of the cash flows, such as the interest payments and the principal repayment, to be received from a given fixed-income security. This calculation is based on three variables:
term to maturity, coupon rate, and yield to maturity. The duration of a se curity is a useful indicator of its 279
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12 price volatility for given changes in interest rates.

Fannie Mae- Trade name for the Federal National Mortgage Association (FNMA), a U.S. sponsored corporation.

Federal Reserve System - The central bank of the U.S. which consists of a seven member Board of Governors, 12 regional banks and 5,700 commercial banks that are members.

Federal Deposit Insurance Corporation (FDIC)- Insurance provided to customers of a subscribing bank which guarantees deposits to a set limit (currently $250,000) per account.

Fed Wire- A wire transmission service established by the Federal Reserve Bank to facilitate the transfer of funds through debits and credits of funds between participants within the Fed system.

Freddie Mac- Trade name for the Federal Home Loan Mortgage Corporation (FHLMC), a U.S. sponsored corporation.

Ginnie Mae- Trade name for the Government National Mortgage Association (GNMA), a direct obligation bearing the full faith and credit of the U.S. Government.

Government Accounting Standards Board (GASB) - A standard -setting body, associated with the Financial Accounting Foundation, which prescribes standard accounting practices for governmental units.

Guaranteed Investment Contracts (GICS)- An agreement acknowledging receipt of funds, for deposit, specifying terms for withdrawal, and guaranteeing a rate of interest to be paid.

Inactive Deposits- Funds not immediately needed for disbursement.

Interest Rate- The annual yield earned on an investment, expressed as a percentage.

Investment Agreements- An agreement with a financial institution to borrow public funds subject to certain negotiated terms and conditions concerning collateral, liquidity and interest rates.

Liquidity- An asset that can easily and rapidly be converted into cash without significant loss of value.

Local Agency Investment Fund (LAIF)- A pooled investment vehicle for local agencies in California sponsored by the State of California and administered by the State Treasurer.

Local Agency Investment Pool- A pooled investment vehicle sponsored by a local agency or a group of local agencies for use by other local agencies.

Market Risk- Defined as market value fluctuations due to overall changes in the general level of interest rates.

Market Value- The price at which a security is trading and could presumably be purchased or sold.

Maturity- The date upon which the principal or stated value of an investment becomes due and payable.

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13 Modified Duration- A measure of exposure to market risk of a security or a portfolio. It is the percent change in the price of a security (portfolio) or a 100 basis point change in the security's (portfolio's) yield.

Mutual Funds- An investment company that pools money and can invest in a variety of securities, including fixed-income securities and money market instruments.

Negotiable Certificate of Deposit- A large denomination certificate of deposit which can be sold in the open market prior to maturity.

New Issue- Term used when a security is originally "brought" to market.

Note- A written promise to pay a specified amount to a certain entity on demand or on a specified date.

Par Value- The amount of principal which must be paid at maturity. Also referred to as the face amount of a bond, normally quoted in S1,000 increments per bond.

Perfected Delivery- Refers to an investment where the actual security or collateral is held by an independent third party representing the purchasing entity.

Portfolio- Combined holding of more than one stock, bond, commodity, real estate investment, cash equivalent, or other asset. The purpose of a portfolio is to reduce risk by diversification.

Primary Dealer- A group of government securities dealers that submit daily reports of market activity and security positio ns held to the Federal Reserve Bank of New York and are subject to its informal oversight.

Principal- The face value or par value of a debt instrument, or the amount of capital invested in a given security.

Prospectus- A legal document that must be provi ded to any prospective purchaser of a new securities offering registered with the SEC that typically includes information on the issuer, the issuer's business, the proposed use of proceeds, the experience of the issuer's management, and certain certified f inancial statements ( also known as an "official statement")

Prudent Investor Standard- A standard of conduct where a person acts with care, skill, prudence, and diligence when investing, reinvesting, purchasing, acquiring, exchanging, selling and managing funds.

The test of whether the standard is being met is if a prudent person acting in a similar situation would engage in similar conduct to ensure that investments safeguard principal and maintain liquidity.

Purchase Date- The date in which a security is purchased for settlement on that or a later date.

Rate of Return- The yield obtainable on a security based on its purchase price or its current market price.

This may be the amortized yield to maturity on a bond or the current income return.

Repurchase Agreement (REPO)- A transaction where the seller agrees to buy back from the buyer (City) the securities at an agreed upon price on demand or at a specified date.

Reverse Repurchase Agreement (REVERSE REPO) - A transaction where the seller (City) agrees to 281
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14 buy back from the buyer the securities at an agreed upon price on demand or at a specified date.

Risk- Degree of uncertainty of return on an asset.

Rule G-37 of the Securities Rulemaking Board - Federal regulations to sever any connection between the making of political contributions and the awarding of municipal securities business.

Safekeeping Service- An arrangement under which a third party institution holds securities or valuables under safe, controlled conditions. A safekeeping arrangement is evidenced by a safekeeping receipt.

Sallie Mae- Trade name for the Student Loan Marketing Association (SLMA), a U.S. sponsored corporation.

Secondary Market- A market made for the purchase and sale of outstanding issues following the initial distribution.

Securities and Exchange Commission (SEC) - The federal agency responsible for supervising and regulating the securities industry.

Settlement Date- The date on which a trade is cleared by delivery of securities against funds.

Tax and Revenue Anticipation Notes (TRANS)- Notes issued in anticipation of receiving tax proceeds or other revenues at a future date.

Time Certificate of Deposit - A non -negotiable certificate of deposit which cannot be sold prior to maturity.

Treasury Bills - U.S. Treasury Bills which are short -term, direct obligations of the U.S. Government issued with original maturities of 13 weeks, 26 weeks and 52 weeks; sold in minimum amounts of $10,000 in multiples of $5,000 above the minimum. Issued in book entry form only. T-bills are sold on a discount basis.

Trustee or trust company or trust department of a bank - A financial institution with trust powers which acts in a fiduciary capacity for the benefit of the bondholders in enforcing the terms of t he bond contract.

Underwriter- A dealer which purchases a new issue of municipal securities for resale.

U.S. Government Agencies- Instruments issued by various US Government Agencies most of which are secured only by the credit worthiness of the particular agency.

U.S. Treasury Obligations - Debt obligations of the United States Government sold by the Treasury Department in the forms of Bills, Notes, and Bonds. Bills are short-term obligations that mature in 1 year or less and are sold on the basis of a rate of discount. Notes are obligations which mature between 1 year and 10 years. Bonds are long-term obligations which generally mature in 10 years or more.

Weighted Average Maturity (WAM)- The average maturity of all the securities that comprise a portfolio that is typically expressed in days or years.
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15 Yield- The rate of annual income return on an investment, expressed as a percentage. It is obtained by dividing the current dollar income by the current market price of the security.

Yield to Maturity- The rate of income return on an investment, minus any premium or plus any discount, with the adjustment spread over the period from the date of purchase to the date of maturity of the bond, expressed as a percentage.

Yield Curve- A graphic representation that shows the relationship at a given point in time between yields and maturity for bonds that are identical in every way except maturity.

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CITY OF MILPITAS

AGENDA REPORT
(AR)

Item Title: City of Milpitas Mutual Aid Assistance Agreement with City of Fremont (Staff Contact: Jason Schoonover, Fire Chief, 408-586-2811)
Category: Consent Calendar-Public Safety
Meeting Date: 8/15/2023
Recommendation: Adopt a resolution authorizing the City Manager to execute the Mutual Aid Assistance Agreement with the City of Fremont for Emergency Response Services.

BACKGROUND:

The City of Milpitas Fire Department has worked with the City of Fremont Fire Department under a Mutual Aid Assistance Agreement for many years. In emergency services, mutual aid is an agreement among emergency responders to lend assistance across jurisdictional boundaries. The most current Mutual Aid agreement with Fremont Fire is dated December 2, 2014. From time to time this agreement is updated. This agreement has benefitted both jurisdictions, which now desire to update the arrangement by entering into a new mutual aid agreement. The intent of this new agreement is to continue providing for mutual aid for use in fire suppression and medical, rescue and other emergency incidents within the individual jurisdictional boundaries of the City of Fremont and the City of Milpitas.

ANALYSIS:

The proposed agreement addresses each party’s interest in and need to have a reasonable and reciprocal exchange of emergency medical and rescue, fire and other emergency services on an as-needed basis. Under the agreement an agency may request mutual aid assistance when it determines that outside assistance is necessary to respond to an incident to protect life or property. The assisting agency, after considering its needs and availability of its resources, may authorize mutual aid. The mutual aid resources are to be released when the services are no longer needed or when the assisting agency’s resources are required in its jurisdiction. The agreement provides that neither agency will incur liability for failure or refusal to furnish mutual aid assistance, or for recalling resources. The agreement also provides that each agency is responsible for its own personnel and is responsible only for its own acts or omissions.

POLICY ALTERNATIVE(S):

Alternative 1: Elect to not authorize the City Manager to execute the Mutual Aid Agreement with the City of Fremont for emergency response services.

Pros: There are none.

Cons: City would not receive mutual aid assistance from the City of Fremont Fire Department for support in fire suppression, medical, rescue and other emergency incidents.

Reason for Not Recommending: Mutual aid assistance provided by Fremont Fire may be needed from time to time to protect life or property in the City.

FISCAL IMPACT:

All mutual aid services provided under the proposed agreement will be performed without monetary compensation or reimbursement. The agreement states that the mutual advantages, protections and services are adequate compensation for the mutual aid se rvices. The agreement also states that it is intended that the services provided and received by each agency be of equal value. In the event compensation is available from a third party as a result of an incident in which mutual aid services were provided, both agencies will cooperate in pursuing such compensation and in allocating any cost recovery proportionately with the costs incurred by each agency in responding to the incident.
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CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA):

RECOMMENDATION:

Adopt a resolution authorizing the City Manager to execute the Mutual Aid Assistance Agreement with the City of Fremont for Emergency Response Services.

ATTACHMENT(S):

1. Agreement between the City of Fremont and the City of Milpitas for Mutual Aid

2. Draft Resolution Approving the Fremont-Milpitas Mutual Aid Agreement

3. 2014 Fremont-Milpitas Mutual Aid Agreement

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AGREEMENT BETWEEN THE CITY OF FREMONT AND THE CITY OF MILPITAS

FOR MUTUAL AID

This Agreemen t for Mutual Aid Assistance ("Agreement") is made and entered into on _________________, __________, by and between the City of Fremont ("Fremont") and the City of Milpitas ("Milpitas'') in Alameda County in the State of California.

RECITALS

WHEREAS, Fremont and Milpitas provide emergency medical and rescue services, and fire protection services within their respective jurisdictional boundaries; and

WHEREAS, Fremont and Milpitas have each historically provided mutual aid assistance to the other upon request for the benefit of Fremont and Milpitas and now desire to formalize this arrangement and confirm the willingness of the City of Fremont and the City of Milpitas to provide emergency assistance to one another to the extent they are each capable; and

WHEREAS, it is in the best interest of Fremont and Milpitas and their respective citizens to ensure that supplemental and reciprocal assistance is available to provide expeditious response to emergency medical and rescue, fire, and other emergency incidents; and

WHEREAS, each party recognizes the need for and desires to provide to the other reasonable and reciprocal exchange of emergency medical and rescue, fire, and other emergency services on an as needed basis; and ·

WHEREAS, this Agreement is authorized and provided for by various provisions o f California law, including, but not limited to Health and Safety Code section 13863 and Government Sections 8631 and 8617, and acts and statutes of the Federal Government, where applicable.

AGREEMENT

NOW, THEREFORE, in consideration of these mutual covenants , the parties hereto agree as follows:

1. PURPOSE.

A. Intent. This Agreement is intended to provide for mutual aid response by an available emergency response unit(s) for use in fire suppression and medical and rescue and other emergency incidents within the individual jurisdictional fire boundaries of Fremont and Milpitas.

B. Applicability in Extreme Emergency . This Agreement is intended to cover day -to-day mutual aid and shall not apply when the California Disaster and Civil Defense Mutual Aid Agreement becomes operative.

C. Definitions. For purposes of this Agreement, the party providing mutual aid into the adjacent jurisdiction shall be identified as the "assisting agency" and the party receiving mutual aid shall be identified as the "agency having jurisdiction".

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Milpitas City CouncilAugust 15, 2023

Milpitas City Council
August 15, 2023