Milpitas City Council
September 5, 2023

REGULAR MEETING OF THE MILPITAS

CITY COUNCIL

September 5, 2023 Milpitas City Council Agenda Page 1

AG E N D A
TUESDAY, SEPTEMBER 5, 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_M3dMcTb_RU6pU6bdSAM5TQ 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 September 5, 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) 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 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 Barbadillo)
PRESENTATIONS (7:05 PM)
 National Suicide Prevention Week (Proclamation)
 National Preparedness Month (Proclamation)
 Certificates for Milpitas High School Digital Map Project Participants PUBLIC FORUM (7:20 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 (7:25 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 September 2023 (Staff Contact: Suzanne Guzzetta, City Clerk, 408-586-3001)
Recommendation: Receive City Council Calendar of Meetings for September 2023.

C2. Approve City Council City Council Meeting Minutes of August 15, 2023 (Staff Contact: Suzanne Guzzetta, City Clerk, 408-586-3001)
Recommendation: Approve City Council Regular Meeting minutes of August 15, 2023.

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.
2 September 5, 2023 Milpitas City Council Agenda Page 3

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 Recommendations from Mayor Montano for Removal from and Appointments to City Commissions, and Accept Commissioner Resignation (Contact: Mayor Montano, 408-586-3024) Recommendation: Receive Mayor Montano's recommendations and approve removals from the Science, Technology and Innovation Commission; Approve and confirm recommendations for appointments to City Commissions; Accept the resignation of Charles Lingle from the Energy and Environmental Sustainability Commission; and direct the City Clerk to post the notice of unscheduled vacancies.

C6. Authorize and Approve Travel to Sacramento, CA, for Councilmember Hon Lien to Attend the League of California Cities Annual Conference and Expo to be Held on September 20-22, 2023, for an Estimated Total Not-to-Exceed Amount of $2,250 Budgeted under the Individual Elected Official Allocation for Conferences/Meetings/Trainings (Staff Contact: Ashwini Kantak, Assistant City Manager, 408-586-3053)
Recommendation: Authorize and approve travel to Sacramento, CA, for Councilmember Hon Lien to attend the Annual Conference of the League of California Cities scheduled on September 20 – 22, 2023, for an estimated total not-to-exceed amount of $2,250 budgeted under the Individual Elected Official allocation for Conferences / Meetings / Trainings.

C7. Approve and Authorize the City Manager to Execute a Stormwater Management Facilities Operation and Maintenance Agreement between the City of Milpitas and Sango Court, L.P., for the Affordable Housing Project at 355 Sango Court (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 Sango Court, L.P., for the Affordable Housing Project at 355 Sango Ct.

C8. Approve and Authorize the City Manager to Execute the Public Trail Easement and Maintenance Agreement for a Residential Development at 355 Sango Court by Sango Court, L.P. (Staff Contact: Roberto Alonzo, Principal Civil Engineer, 408-586-3316) Recommendation: Approve and authorize the City Manager to execute the Public Trail Easement and Maintenance Agreement for a residential development at 355 Sango Court by Sango Court, L.P.

C9. Approve and Authorize the City Manager to Execute the Encroachment and Maintenance Agreement with Sango Court, L.P., for the Installation and Maintenance of Private Landscape Improvements, within City Right-of-way, for the Sango Court Affordable Housing Project Located at 355 Sango Court (Staff Contact: Roberto Alonzo, Principal Civil Engineer, 408-586- 3316)
Recommendation: Approve and authorize the City Manager to execute the Encroachment and Maintenance Agreement with Sango Court, L.P., for the installation and maintenance of private landscape improvements, within City Right-of-way, for the Sango Court Affordable Housing Project located at 355 Sango Court.
3 September 5, 2023 Milpitas City Council Agenda Page 4

C10. Receive the April – June 2023 Report for Unhoused Services (Staff Contact: Alex Andrade, Economic Development Director, 408-586-3046)
Recommendation: Receive the April – June 2023 report for unhoused services.

C11. Accept and Approve a Budget Appropriation of $200,000 and Authorize the Acting City Manager or Designee to execute an agreement with Housekeys for Administration of City’s Below Market Rate Homeownership Program (Staff Contact: Alex Andrade, Economic Development Director, 408-586-3046; and Robert Musallam, Housing and Neighborhood Services Administrator, 408- 586- 3275)
Recommendation: Accept and approve a budget appropriation of $200,000.00 from the Affordable Housing and Community Benefit Fund and authorize the Acting City Manager or Designee to execute an agreement with Housekeys for Administration of City’s Below Market Rate Homeownership Program.

C12. Adopt a Resolution Approving a Site Development Permit to Develop a New In-Ground Swimming Pool and Legalize the Unpermitted Site Improvements at an Existing Single-Family Residence at 640 Evans Road (Staff Contact: Jay Lee, Interim Planning Director, 408-586-3077) Recommendation: Consider the exemption in accordance with CEQA and adopt a resolution approving Site Development Permit No. SD20-0015, subject to the attached Conditions of Approval, to allow the development of a new in-ground swimming pool and legalize the unpermitted site improvements at an existing single-family residence on a 2.69 acre site at 640 Evans Road.

C13. 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.

C14. Adopt a Resolution Approving the City Manager, Acting City Manager or Designee to apply for an up to $3,500,000 Community Resilience Center (CRC) Grant from the State of California Strategic Growth Council and Authorizing the City Manager, Acting City Manager or Designee to Accept a CRC Grant and Execute all Related Documents as the Authorized Agent on the Grant Agreements (Staff Contact: Matt Cano, Deputy City Manager, 408-890-8065) Recommendation: Adopt a resolution approving the City Manager, Acting City Manager or Designee to apply for an up to $3,500,000 Community Resilience Center Grant from the State of California Strategic Growth Council and Authorizing the City Manager, Acting City Manager or Designee to accept a CRC grant and execute all related documents as the Authorized Agent on the Grant Agreements.

PUBLIC HEARINGS (7:30 PM)
Members of the public may be allotted up to three (3) minutes or less at the Mayor’s discretion, to comment on any public hearing item. Applicants/Appellants and their representatives may be allotted up to a total of ten (10) minutes for opening statements and up to a total of five (5) minutes maximum for closing statements. Items requested/recommended for continuance are subject to Council’s consent at the meeting.

15. Conduct a Public Hearing and Approve the Draft FY 2022-2023 Community Development Block Grant (CDBG)’s Consolidated Annual Performance and Evaluation Report (CAPER) (Staff Contact: Alex Andrade, Economic Development Director, 408-586-3046; and Robert Musallam, Housing Division Manager, 408-586-3275)
4 September 5, 2023 Milpitas City Council Agenda Page 5

Recommendation: (1) Open the public hearing, hear testimony, then move to close the public hearing; (2) Approve the draft FY 2022-2023 Community Development Block Grant (CDBG) Consolidated Annual Performance and Evaluation Report (CAPER); and (3) Authorize the Acting City Manager, or designee, to make any necessary changes and to submit the approved draft FY 2022-2023 CAPER to the U.S. Department of Housing and Urban Development (HUD) to comply with CDBG requirements.

COMMUNITY DEVELOPMENT (8:30 PM)

16. Adopt a Resolution Certifying Election Results and Adding Tract No. 10592 to Community Facilities District 2008-1 (Annexation No. 25); Approve Final Tract Map No. 10592 for a Residential Project at 2001 Tarob Court; and Approve and Authorize the City Manager to Execute the Subdivision Improvement Agreement. (Staff Contact: Roberto Alonzo, Principal Engineer, 408-586-3316)
Recommendation: (1) Following receipt of election results from the City Clerk, adopt a resolution certifying election results and adding Tract No. 10592 to Community Facilities District 2008-1 (Annexation No. 25); (2) Approve Final Tract Map No. 10592, including all offers of dedications as stated and depicted on the final map upon completion and acceptance of improvements; and (3) Approve and authorize the City Manager to execute the Subdivision Improvement Agreement between the City of Milpitas and KB Home South Bay, Inc.

17. Accept an Allocation of $1,600,000 in State Funding for the Milpitas SMART Program, Approve a Budget Appropriation into CIP Project No. 3493, and Provide Direction to Staff on Proposed Program Modifications (Staff Contact: Ashwini Kantak, Assistant City Manager, 408-586-3053; and Jay Lee, Interim Planning Director, 408-586-3077)
Recommendation: (1) Accept $1,600,000 in State funding through the Budget Act of 2023 (AB 102) for the Milpitas SMART program and approve a budget appropriation of $1,600,000 in State funding into CIP Project No. 3493 Milpitas SMART; and (2) Receive a presentation on the current Milpitas SMART pilot program and provide direction on staff recommendations for proposed program modifications.

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.

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: https://www.milpitas.gov/129/Agendas-Minutes (select meeting date)

5 September 5, 2023 Milpitas City Council Agenda Page 6

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
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 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)

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 4:00 PM- Milpitas HOPE Task Force
13 4:30 PM-City Council Finance
Subcommittee (CM/EC)
7:00 PM-Silicon Valley Clean Energy
Board of Directors (EC) (Cupertino)

14 8:00 AM Special Council Meeting,
Sonesta Event Center
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 12:00 PM Special Council
Meeting, Sonesta Event Center
6:00-7:00 PM- Mexican
Independence Day Flag Raising
(Cesar Chavez Plaza)
16 17

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

19 6:00 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
6:00 -9:00 PM- Lantern Festival
(Civic Center Plaza)
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

League of CA Cities Annual Conference and Expo, Sacramento (CM. EC, NT) 7 Item # C1.

8 Item # C1.

REGULAR MEETING OF THE MILPITAS

CITY COUNCIL

August 15, 2023 Milpitas City Council Minutes Page 1

M I NU TE S
TUESDAY, AUGUST 15, 2023

The City Council of the City of Milpitas convened on August 15, 2023, in the City Council Chamber at City Hall, 455 E. Calaveras Blvd., Milpitas, and via teleconference/ Zoom webinar.

CALL MEETING TO ORDER by Mayor and ROLL CALL by City Clerk Mayor Montano called the Regular City Council meeting to order 6:00 PM. Roll Call was taken by City Clerk Guzzetta.

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

ABSENT: Councilmember Barbadillo.

City Attorney Mutalipassi announced the closed session items. The City Council adjourned to Closed Session at 6:02 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.

The City Council reconvened in open session at 7:45 PM.

CLOSED SESSION ANNOUNCEMENT:

Mayor Montano and City Attorney Mutalipassi reported that there was no action taken on Closed Session items (a) and (c). Adam Lindgren reported that the City Council received an update on Item (b).

PLEDGE OF ALLEGIANCE
Mayor Montano led the Pledge of Allegiance.

INVOCATION
Councilmember Lien presented the invocation.

PRESENTATIONS
Mayor Montano presented a proclamation in recognition of Women’s Equality Day. She then presented commendations to Jayceon Carswell and Jayden Petty for USA Jr. Olympics Track & Field Events, and 9 Item # C2.

August 15, 2023 Milpitas City Council Minutes Page 2

presented commendations recognizing the achievements of members of the Milpitas High School AeroTech Club.

PUBLIC FORUM
There were the following public speakers:

1. Greg Jones

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 (Absent: Councilmember Barbadillo). 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 (Absent: Councilmember Barbadillo).

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

Mayor Montano called for a recess at 8:03 PM. The City Council reconvened at 8:13 PM

APPROVAL OF AGENDA
Motion: to approve the August 15, 2023 Regular Meeting Agenda, considering Item 18 before 17.

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

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

CONSENT CALENDAR
Motion: to approve the Consent Calendar

Motion/Second: Councilmember Lien / Councilmember Phan Motion carried by the following:

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

There were no public speakers.

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

Suzanne Guzzetta, City Clerk, 408-586-3001)
Received 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)
Approved City Council Special Meeting minutes of August 8, 2023. 10 Item # C2.

August 15, 2023 Milpitas City Council Minutes 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)
Received 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)
Reviewed the list of items that have been requested by City Councilmembers and provided direction to staff as necessary.

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

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

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)
Approved 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) (1) Authorized and approved 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) Authorized 11 Item # C2.

August 15, 2023 Milpitas City Council Minutes Page 4

and approved travel to Sacramento, CA, for 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) Appointed 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)
Approved and authorized 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.

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) (1) Authorized 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) Authorized reimbursement to the Santa Clara Valley Water District for City improvements completed as part of the Flood Protection Work, Project No. 3452; and (3) Approved 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) (1) Authorized 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)
Received and reviewed 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) Adopted Resolution No. 9267 of the City of Milpitas approving the Investment Policy for FY 2023-24.

12 Item # C2.

August 15, 2023 Milpitas City Council Minutes Page 5

C13. City of Milpitas Mutual Aid Assistance Agreement with City of Fremont (Staff Contact: Jason Schoonover, Fire Chief, 408-586-2811)
Adopted Resolution No. 9268 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) Adopted Resolution No. 9269 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.

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)
(1) Received 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) Determined 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) Approved three Youth Advisory Commission Community Service Scholarships of $600.00 each for a total amount of $1,800.00.

COMMUNITY SERVICES AND SUSTAINABLE INFRASTRUCTURE

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)
Acting City Manager Thomas introduced the item. Recreation and Community Services Deputy Director McLane, joined by Task Force Members Zakia Afrin and Giuliana Brahim, presented the report, and responded to questions from City Council.

Mayor Montano provided background on the Task Force and observed that future actions depended on obtaining grant funding.

Vice Mayor Chua commended members of the Task Force, thanked them for their work, and made a motion: to receive the report and the recommendation from the Task Force, and, in the future, revive the Task Force to look at the recommendations.

There were no public speakers.

Motion/Second: Vice Mayor Chua / Mayor Montano
Motion carried by the following:

AYES: Councilmembers Lien and Phan, Vice Mayor Chua, and Mayor Montano NOES: None
ABSENT: Councilmember Barbadillo
13 Item # C2.

August 15, 2023 Milpitas City Council Minutes Page 6

COMMUNITY DEVELOPMENT

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) Assistant City Manager Kantak introduced the item and presented the report.

There were no public speakers.

Vice Mayor Chua spoke in favor of returning with a Closed Session discussion on pricing and terms for the purchase of Parcel 1, deferring discussion on taking action related to Parcels 2 and 3, deferring discussion on declaring Parcels 2 and 3 as surplus land until a decision in made regarding Parcel 1 and continuing with prior council direction for tenant assistance. Councilmember Lien supported the direction. Councilmember Phan also supported the recommendation and added a suggestion to consider temporarily using the location for storage of the public safety fleet. Mayor Montano also spoke in favor of the direction.

Vice Mayor Chua reiterated the direction adding the suggestion from Councilmember Phan to use the parcels for storage. Assistant City Manager Kantak noted that it may not be feasible to use Parcel 3 for storage due to the estimate cost of $1.4 million for needed repairs.

ANNOUNCEMENTS AND FUTURE AGENDA ITEMS

Vice Mayor Chua asked for staff to provide the City Council with an informational memorandum on lessons learned from the recent fire on Maui and how the City can update its emergency plan. There was unanimous support to move forward with the request.

Mayor Montano announced the India Independence Day celebration and referred staff to review the City’s weed abatement policy.

ADJOURNMENT
Mayor Montano adjourned the meeting at 8:59 PM

Draft meeting minutes submitted by City Clerk, Suzanne Guzzetta

14 Item # C2.

TENTATIVE CITY COUNCIL AGENDA ITEM LIST
as of 8/31/2023

September 19, 2023 – Regular Meeting

CLOSED SESSION
 Labor Relations

INVOCATION (Councilmember Barbadillo)

CONSENT CALENDAR

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

2. Approve City Council Meeting minutes of August 29, 2023 and September 5, 2023 (City Clerk)

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

4. Councilmember Request List (City Clerk)

5. Commission Workplans and Accomplishments (City Manager)

6. Legislative Update on 2023 Bill Positions and Earmark Request (City Manager)

7. 2001 Tarob Court Reimbursement Agreement (Engineering)

8. 554 S. Main Street Improvement Agreement (Engineering)

9. 260 S. Milpitas Blvd O&M Agreement (Engineering)

10. Q4 Fiscal Status Report (Finance)

11. HDL Agreement (Finance)

12. Extension of agreement with NEOGOV for Applicant Tracking, Employee Onboarding, and Performance Management Software (Human Resources)

13. Liebert Cassidy and Whitmore Labor Relations Services Agreement (Human Resources)

14. Agreement with Asquare Inc. for Temporary Staffing Services (Human Resources)

15. Report on Emergency HVAC Repairs (Public Works)

COMMUNITY SERVICES

16. Bike Lane Project Scope Confirmation (Engineering)

17. Park Historic Marker Project (Recreation)

LEADERSHIP & SUPPORT SERVICES

18. Council Quarterly Prioritization (City Manager)

REPORTS
15 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 Review the City’s weed abatement policy Montano 8/15/2023 2 Provide the City Council with an informational
memorandum on lessons learned from the recent
fire on Maui and how the City can update its
emergency plan Chua 8/15/2023
3 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.
4 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:
5 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
Development 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
6 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.
7 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.
8 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 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
9 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.
10 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
11 Quarterly or Monthly crime statistics on Homekey
Project
Chua 6/7/2022 Quarterly reports to City Council are ongoing. 12 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.
13 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 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
14 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.
15 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 renovating
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.
16 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.
17 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.
18 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.
19 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 oin
Great Mall Parkway and is solidifying the
workplan for installation.

NOTE: Deferred and Completed Items are not listed18
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
20 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.
21 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.
22 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
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.
23 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.
24 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.

NOTE: Deferred and Completed Items are not listed19
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
25 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.
26 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 listed20
Item # C4.

CITY OF MILPITAS

AGENDA REPORT
(AR)

Item Title: Consider Recommendations from Mayor Montano for Removal from and Appointments to City Commissions, and Accept Commissioner Resignation (Contact: Mayor Montano, 408-586-3024)
Category: Consent Calendar-Leadership and Support Services Meeting Date: 9/5/2023
Recommendation: Receive Mayor Montano's recommendations and approve removals from the Science, Technology and Innovation Commission; Approve and confirm recommendations for appointments to City Commissions; Accept the resignation of Charles Lingle from the Energy and Environmental Sustainability Commission; and direct the City Clerk to post the notice of unscheduled vacancies.

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. Commissioner appointments and removals are governed by various sections of the California Government Code, Milpitas Municipal Code, and the adopted Milpitas Commissioner Handbook and By-Laws.

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.

Certain commission seats have specific requirements to be filled including recommendation for appointment by outside organizations. One seat on the Economic Development and Trade Commission is designated as a Chamber of Commerce representative seat. One seat on the Public Safety and Emergency Preparedness Commission is designated as a Milpitas Unified School District representative seat. The Milpitas Chamber of Commerce and Milpitas Unified School District appoint representatives and those appointments are confirmed by the Milpitas City Council.

The Milpitas Commissioner Handbook states that all Commissioners are expected to attend all regular meetings. Commissioners absent from three or more meetings in a year may be subject to removal from the Commission.

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

Analysis:

Appointments and removals are as follows:

Community Advisory Commission:

1. Appoint Suraj Viswanathan to a full voting seat with an unexpired term ending January 2026

Economic Development and Trade Commission:
21 Item # C5.

2. Confirm appointment of Victor San Vicente to the Chamber of Commerce representative seat with a term ending April 2024

Public Safety and Emergency Preparedness Commission:

1. Confirm appointment of Kelly Yip Chuan to the MUSD representative seat with a term ending June 2026

Science, Technology and Innovation Commission:

1. Remove Pulak Mehta from a full voting seat with an unexpired term ending January 2026

2. Remove Nasir Lalani from a full voting seat with an unexpired term ending January 2024

Pulak Mehta was appointed as a full voting commissioner on the Science, Technology and Innovation Commission on March 7, 2023 and prior to that served as an alternate commissioner. During this calendar year, Commissioner Mehta missed all scheduled meetings.

Nasir Lalani was appointed as a full voting commissioner on the Science, Technology and Innovation Commission on June 21, 2021. During this calendar year, Commissioner Lalani has missed three meetings on February 27, 2023, May 15, 2023, and August 21, 2023. In 2022, Commissioner Lalani missed four meetings on January 24, 2022, August 15, 2022, October 17, 2022, and December 19, 2022.

Commissioner Charles Lingle submitted his resignation from the Energy and Environmental Sustainability Commission.

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

By state law, a Notice of an Unscheduled Vacancy must be posted by the City Clerk to advertise the vacant Commission seats. Final appointment to the board, commission, or committee for the Unscheduled Vacancy shall not be made by the legislative body for at least ten working days after the posting of the notice in the Clerk’s office. The notice of the unscheduled vacancy for the Energy and Environmental Sustainability and the Science, Technology and Innovation Commissions will be posted Wednesday, September 6, 2023.

Fiscal Impact:

There is no fiscal impact associated with this item.

Recommendation:

Receive Mayor Montano's recommendations and approve removals from the Science, Technology and Innovation Commission; Approve and confirm recommendations for appointments to City Commissions; Accept the resignation of Charles Lingle from the Energy and Environmental Sustainability Commission; and direct the City Clerk to post the notice of unscheduled vacancies.

Attachments:

1. Chamber and MUSD Appointments

2. Science, Technology and Innovation Commission Attendance Record 2022

3. Science, Technology and Innovation Commission Attendance Record 2023

4. Energy and Environmental Sustainability Commissioner Charles Lingle Resignation 22 Item # C5.
1 Suzanne Guzzetta
From: Alex Andrade
Sent: Monday, August 14, 2023 9:04 AM
To: Kelly Yip-C; Daniel Degu; Suzanne Guzzetta
Cc: Victor San Vicente; Jennifer Cullenbine
Subject: RE: EDTC- Chamber Victor San Vicente
Thank you, Kelly. Receiving the Chamber's meeƟng agendas are helpful, but receiving a reoccurring meeƟng invitaƟon is more important (please include meeƟng link, if possible). It would be helpful to include Daniel on the meeƟng invitaƟon, too.

I am adding Daniel Degu (Economic Development Coordinator) and Suzanne GuzeƩa (City Clerk) onto the email thread so that they are both informed and can assist as I have a feeling that Victor's selecƟon may sƟll require City Council consideraƟon.

Good morning Suzanne ‐ the Milpitas Chamber of Commerce selected Victor San Vicente as their representaƟve for the Economic Development and Trade Commission. Does Victor need to be appointed formally through City Council consideraƟon?

Please see Kelly's email for more background.

Thank you all,
Alex

Alex Andrade, MPA
Economic Development Director
Phone: (408) 586‐3046 Email: [email protected]
455 E. Calaveras Blvd., Milpitas CA 95035 www.milpitas.gov

‐‐‐‐‐Original Message‐‐‐‐‐
From: Kelly Yip‐C
Sent: Sunday, August 13, 2023 9:25 PM
To: Alex Andrade <[email protected]>
Cc: Victor San Vicente >; Jennifer Cullenbine <
Subject: EDTC‐ Chamber Victor San Vicente

CAUTION: EXTERNAL SENDER
This email originated from outside the organizaƟon. Do NOT click links or open aƩachments unless you recognize the sender and know the content is safe. Report suspicious messages to the IT Helpdesk.

Hello Alex,

Hope all is well with you. As you may have heard, the Chamber had an elecƟon in July. Victor San Vicente is the person selected to represent at EDTC. I ran into Mayor Montano on 8/5 at the K On The Go Ribbon Cuƫng and asked her about the process for geƫng approved by council. She said it’s whoever the organizaƟon chooses to represent at the meeƟng.

In this case, our Chamber selected Victor. She said it does not need to go through the council for approval and that the 23 Item # C5.
2 individual just shows up to represent. I’m in a similar situaƟon for MUSD. I was selected to represent MUSD at the Safety Commission. Carmen says for me to just show up and represent. Not sure if there’s anything else needs to be done for Victor to have a vote on EDTC to represent the Chamber. Please let us know. Victor is ready to aƩend EDTC meeƟngs. He’s also copied on the email.

Btw…below is our new execuƟve board.

President‐ Jennifer Cullenbine
VP ‐ John Agg & Kelly Yip‐Chuan
Treasurer‐ Anu Nakka
Corp Sec‐ Armando Gomez

If you have any quesƟon, please feel free to contact me. I have copied Jennifer on the email. I know there was a confusion at our last chamber board meeƟng on EDTC presenƟng.

Jennifer‐ please send Alex a copy of our agenda for all regular meeƟngs before our meeƟngs. Alex and/or his staff aƩends the mtg to give us updates. If you like them to present, please coordinate and give extra Ɵme. I am here to help.◗◘◙◛

Regards,
Kelly Yip‐Chuan

24 Item # C5.

Science, Technology & Innovation Commission
Attendance Record 2022

CANCELLED
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Meeting Dates 1/24/2022 2/28/2022 3/21/2022 4/18/2022 5/16/2022 6/20/2022 8/15/2023 10/17/2022 12/19/2022 Albert Alcorn A P P P P
Anh Bao P P P P P
Amrita Mukherjee NA NA NA NA NA NA A P P
Guy Haas A P A P
Kevin Le P A P A P
Nasir Lalani A P A A A
Ratan Choudhury P P P P P
Jason Wong A A
Alt1. Abhijit Pandey P A P
Alt2. Pulak Mehta A A A A A
Councilmember Garry Barbadillo
Daniel Nam
Vikram Chand
25 Item # C5.

Science, Technology & Innovation Commission
Attendance Record 2023 Special No quorum
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Meeting Dates 2/27/2023 4/17/2023 5/15/2023 6/19/2023 8/21/2023 9/18/2023 Albert Alcorn (2/2/21) P P P P P
Anh Bao P P P A P
Amrita Mukherjee (8/9/22) P P P P P
Kevin Le (6/21/21) P P P P A
Nasir Lalani (6/21/21) A P A P A
Ratan Choudhury P P P A A
Pulak Mehta (3/7/23) A A A A A
Jason Wong A NA NA NA NA NA NA NA NA NA
Voting Members Present 5 6 5 4 3
Alt.1 VACANT
Alt.2 Suresh Sinha (3/7/23) NA P A P A
Std. Aahan Shah (11/1/22) NA P P A P
Councilmember Garry Barbadillo P A
Ashwini Kantak
Daniel Nam
Vikram Chand
Jason Pham
26 Item # C5.
27 Item # C5.
2 Have a great weekend!
Elaine

Elaine Marshall
Deputy Public Works Director
Phone (408) 586‐2603
Email [email protected]
1265 N. Milpitas Blvd., Milpitas CA 95035
www.milpitas.gov

28 Item # C5.

CITY OF MILPITAS

AGENDA REPORT
(AR)

Item Title: Authorize and Approve Travel to Sacramento, CA, for Councilmember Hon Lien to Attend the League of California Cities Annual Conference and Expo to be Held on September 20-22, 2023, for an Estimated Total Not-to-Exceed Amount of $2,250 Budgeted under the Individual Elected Official Allocation for Conferences/Meetings/Trainings (Staff Contact: Ashwini Kantak, Assistant City Manager, 408-586-3053)
Category: Consent Calendar-Leadership and Support Services Meeting Date: 9/5/2023
Recommendation: Authorize and approve travel to Sacramento, CA, for Councilmember Hon Lien to attend the Annual Conference of the League of California Cities scheduled on September 20 – 22, 2023, for an estimated total not-to-exceed amount of $2,250 budgeted under the Individual Elected Official allocation for Conferences / Meetings / Trainings.

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 Councilmember’s attendance at the League of CA Cities Annual Conference and Expo will allow her 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 the City Council. Council approval of this request will allow Councilmember Hon Lien 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 expense for the Sacramento League of California Cities Annual Conference and Expo, including the registration fee, is $2,250 for each attendee. To date, Councilmember Hon Lien has not utilized her Individual Elected Official allocation of $10,000 for Conferences/Meetings/Memberships.

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 Councilmember Hon Lien to attend the Annual Conference of the League of California Cities scheduled on September 20 – 22, 2023, for an estimated 29 Item # C6.

not-to-exceed amount of $2,250 budgeted under the Individual Elected Official allocation for Conferences / Meetings / Trainings

Attachment(s):

1. Draft conference agenda

2. Council budget tracking
30 Item # C6.

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Travel and Training FY 23-24 Budget Tracking for Council Training/Travel Event Total Remaining Balance
2,250.00$ 7,750.00$
1 Sacramento Annual Conf/Expo: Sept 20 - 22 (estimates only) $ 2,250.00 Training/Travel Event Total Remaining Balance
$ 2,250.00 $ 7,750.00
1 Sacramento Annual Conf/Expo: Sept 20 - 22 (estimates only) $ 2,250.00 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
51 Item # C6.

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 Sango Court, L.P., for the Affordable Housing Project at 355 Sango Court. (Staff Contact: Roberto Alonzo, Principal Civil Engineer, 408-586-3316) Category: Consent Calendar-Community Development
Meeting Date: 9/5/2023
Recommendation: Approve and authorize the City Manager to execute a Stormwater Management Facilities Operation and Maintenance Agreement between the City of Milpitas and Sango Court, L.P., for the Affordable Housing Project at 355 Sango Ct.

BACKGROUND:

On May 23, 2018, the Milpitas Planning Commission approved Developer’s application for a Site Development Permit (SD17-0017), Density Bonus (DB17-0001), and Environmental Assessment (EA18-0001) to allow the construction of a 102-unit multifamily apartment building and associated site improvements. The Project is located on an existing 1.26-acre site at 355 Sango Court., Milpitas, CA 95035.

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 Sango Court L.P. (Developer) constructed storm water bio-retention treatment areas to meet the low impact development and post construction treatment requirements for stormwater. The Developer, Sango Court L.P. and property owner will be responsible for the perpetual maintenance and operation of the privately owned stormwater treatment facilities within their private property and not maintained by the City . The stormwater treatment built on public right of way for the treatment of public stormwater will be owned and maintained by the City once the public improvements have been accepted by the City.

Sango Court L.P. 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 approved 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. 52
Item # C7.

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 not recommended: 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 and areas, staff recommends approval of the Agreement.

FISCAL IMPACT:

As required by the Stormwater Management Facilities Operation and Maintenance Agreement, the project developer/property owner will pay the City for the required annual maintenance and inspection of the installed stormwater Bio-treatment facilities.

California Environmental Quality Act (CEQA):

The Planning Division conducted an initial environmental assessment (PEA18-0001) of the project in accordance with the California Environmental Quality Act (CEQA). The Addendum fully addressed all potential impacts associated with this project, and no material changes have been made to the project that would alter the conclusions of the Addendum. The analysis contained in the Environmental Checklist confirms that the modified project is within the scope of the TASP FEIR and will have no new or more severe significant effects and no new mitigation measures are required.

Additionally, the TASP EIR included a program of activities including construction of up to 7,109 residential units within the TASP area. The 100-102 residential units proposed as a part of the Site Development Permit for the 355 Sango Court site fall within this scope of development activity, as the TASP area has not reached its full build out.

Pursuant to Sections 15162 and 15163 of the California Environmental Quality Act, the project is exempt from further environmental analysis. Project design features required of projects covered under the TASP EIR are included as Conditions of Approval, attached hereto as Exhibit I. Based on the foregoing, the project will not have additional environmental impacts beyond those identified in the TASP EIR, no additional environmental review is required, and no new or additional mitigation measures are required.

As a separate and independent basis, the project is also exempt from further CEQA review pursuant to Sections 15183, 15182, and 15169 of the California Environmental Quality Act, as the project is generally consistent with the development density established by existing zoning, specific plan, and general plan and is within the scope of the TASP FEIR. Therefore, no further environmental review is required.

RECOMMENDATION:

Approve and authorize the City Manager to execute a Stormwater Management Facilities Operation and Maintenance Agreement between the City of Milpitas and Sango Court L.P. for the Affordable Housing Project at 355 Sango Court.

Attachment(s):

1. Stormwater Management Facilities Operation and Maintenance Agreement

53 Item # C7.
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OPERATION & MAINTENANCE PLAN

355 Sango Court

Milpitas, CA

Prepared By:

Luk and Associates
738 Alfred Nobel Drive
Hercules, CA 94547
(510)724-3388

Preparer: Chris Wood, P.E. C72184

Dated: June 28, 2023
64 Item # C7.

I. Stormwater BMP Inspection and Maintenance Logs ................................................ 1 II. Designation of Individuals Responsible for Stormwater Treatment BMP Operation and Maintenance ......................................................................................... 2 III. Updates, Revisions and Errata ..................................................................................... 3 IV. Introduction ................................................................................................................... 4 IV.A. Site Description ..................................................................................................... 4 IV.B. Existing Site Condition ......................................................................................... 4 IV.C. Self Treating Areas ............................................................................................... 4 IV.D. Summary of Stormwater Treatment Facilities ...................................................... 4 V. Responsibility for Maintenance ................................................................................... 4 V.A. Contact Information for Responsible Individuals ................................................. 5 V.B. Funding for Operation and Maintenance .............................................................. 5 V.C. Staff Training Program ......................................................................................... 6 VI. Summary of Drainage Areas and BMPs ..................................................................... 6 VI.A. Specific Descriptions of Each Drainage Area and Treatment Facility ................. 6 VI.B. Features of all Infiltration Planters ....................................................................... 7 VII. Documentation of BMP Construction [to be completed and updated] .................... 8 VII.A. Details of Construction ......................................................................................... 8 VII.B. Planting Plan ......................................................................................................... 8 VII.C. Irrigation System ................................................................................................... 8 VIII. BMP Maintenance Schedule ........................................................................................ 8 VIII.A. Whenever Landscaping within Planters is Maintained ..................................... 9 VIII.B. Routine Inspection and Maintenance of Drainage System and Planters .......... 9 VIII.C. Inspection Following Storms .......................................................................... 10 VIII.D. Comprehensive Annual Inspection Prior to Rainy Season (system-wide) ..... 10

Checklists

Routine Inspection and Maintenance

Annual Inspection and Maintenance

Inspection and Maintenance Following Storms

65 Item # C7.
1 I. Stormwater BMP Inspection and Maintenance Logs

Facility Name

Address

Begin Date End Date

Date

BMP ID#

BMP Description Inspected
by:

Cause for
Inspection
Exceptions Noted Comments and Actions Taken

Instructions: Make copies of this blank form. Record all inspections and maintenance for all treatment BMPs on this form. Use additional log sheets and/or attach extended comments or documentation as necessary. Submit a copy of the completed log with the annual independent inspectors’ report to the City of Antioch, and then start a new log.
• BMP ID# - Always use the ID# from the Operation and Maintenance Manual. • Inspected by - Note all inspections and maintenance on this form, including the required independent annual inspection. • Cause for inspection – Note if the inspection is routine, pre-rainy-season, post storm, annual, or in response to a noted problem or complaint • Exceptions noted – Note any condition that requires correction or indicates a need for maintenance • Comments and Actions Taken – Describe any maintenance done and need for follow-

66 Item # C7.
2 II. Designation of Individuals Responsible for Stormwater Treatment BMP Operation and Maintenance

Designation for Individuals Responsible for
Stormwater Treatment BMP Operation and Maintenance

Date Completed

Facility Name

Facility Address

Designated Contact for Operation and Maintenance
Name: Title or Position:

Telephone:

Alternate Telephone:

Email:

Off-Hours or Emergency Contact
Name: Title or Position:

Telephone:

Alternate Telephone:

Email:

Corporate Officer (authorized to execute contracts with the City, Town, or County) Name: Title or Position:

Address:

Telephone:

Alternate Telephone:

Email:

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3 III. Updates, Revisions and Errata
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4 IV. Introduction
IV.A. Site Description

The project is a commercial-development of 3 retail spaces in 1 new building, surrounded by outdoor patios and a drive-thru aisle along the building’s south and east side. Parking will be located along the building’s north and west sides. Landscaping will be located within landscaping islands around the new building. Vehicular and pedestrian access will be from the south side of the site off Landess Avenue.

IV.B. Existing Site Condition s

The project site is approximately 0.75 acres and is located in the Parktown Plaza Shopping Center, which is at the northeast corner of Landess Avenue and South Park Victoria Drive in Milpitas, California. The site itself is adjacent to and north of Landess Avenue, west along South Park Victoria Drive. Currently, the project site is a moderately sloped, existing parking lot in the Parktown Plaza. The site is bounded by an existing Rite-Aid to the north, Landess Avenue to the south, South Park Victoria Drive to the west, and an existing Wells Fargo Bank to the east.

IV.C. Self Treating Areas

There are no designated self-treating areas on the project site.

IV.D. Summary of Stormwater Treatment Facilities

Impervious areas on the site, including all roofs, parking areas, and driveways have been divided into distinct drainage areas as shown on the Storm Water Control Plan. Runoffs from each of these areas are managed by routing storm water to bio-retention areas to treat runoff from these areas located around the site perimeter. All storm water will be drained into the storm inlet through the bio-retention areas prior to capture into the underground system.

Specific drainage areas and planter locations are shown on Stormwater Control Plan (C-3 Exhibit)

Offsite impervious surface is not being treated by IMP as improvements are limited to replacement of existing frontage concrete sidewalk and curb, and does not fall under the C-3 requirements for onsite improvements.

V. Responsibility for Maintenance

Sango Court L.P. will be responsible for the operation and maintenance of the Stormwater Treatment BMPs conveying and treating stormwater within their property. There shall be a 69 Item # C7.
5 separate agreement and operation and maintenance plan for any other property owner within this property.

The following organization chart shows the organization of the maintenance function and the location within the overall organization.

V.A. Contact Information for Responsible Individuals

Sango Court L.P.’s primary contact will be (________________________________). Please see attachment for contact information. A new form shall be completed and added to section II whenever any of this information changes or is updated. When this occurs, a copy of the new table must be provided to the C3 representative at the City of Milpitas.

An Operation and Maintenance Agreement between the City of Milpitas and Sango Court L.P. was entered into on (___________________________).

See the Operation and Maintenance Agreement.

V.B. Funding for Operation and Maintenance

The Operation and Maintenance Agreement sets forth that Sango Court L.P. shall fund the operation and maintenance of the BMPs outlined in the project C3 Report. There is no apparent mechanism for funding at this time.

Sango
Court
L.P.

Funding
Representative
Landscape Contractor
Responsible for
Maintenance
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6 V.C. Staff Training Program

The landscape contractors retained by Sango Court L.P. will familiarize themselves with the purposes, features, and mode of operation of the stormwater vegetated swale, flow through planter strips, and storm sump pump system as described in this O&M manual.

As will be reflected in contracts for landscape maintenance and other maintenance services, landscape maintenance supervisors and employees will be informed of the following specific maintenance requirements for the above mentioned BMPs.

• Maintain the design elevation of the soil surface
• Avoid and remove any soil or debris blocking planter inlets and outlets • Use only equivalent soil to amend or condition soils as indicated on the landscape plan
• Minimize applications of fertilizers
• Application of pesticides are to be conducted only by a licensed pest control operator trained the in use of Integrated Pest Management

VI. Summary of Drainage Areas and BMPs

Drainage areas and locations of the treatment BMPs are shown on the Stormwater Control Plan (C-3 Exhibit). Discussions of each drainage area are as follows:

VI.A. Specific Descriptions of Each Drainage Area and Treatment Facility

Area “DMA-1” – The roof tops on the west side of the building are collected and conveyed towards the bioretention planters located on the west side of the podium deck. Storm water will drain via roof-drains and into the bio-retention planters.

Area “DMA-2” – The roof tops on the east side of the building are collected and conveyed towards the bioretention planters located on the east side of the podium deck. Storm water will drain via roof-drains and into the bio-retention planters.

Area “DMA-3” – The podium deck at the center of the building is collected and conveyed towards the bioretention planter located on the north end of the building. Storm water will drain via roof-drain and into the bio-retention planter.

Area “DMA-4” – The entry courtyard at the south end of the building and a portion of the west roof is collected and conveyed towards the bioretention planter located on the south end of the building. Storm water will drain via roof-drain and via overland, discharging into the bio- retention planter.

Area “DMA-5” – This area is all landscaping and is self-treating.

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7 Area “DMA-6” – The exterior sidewalk and transformer pad at the south end of the building is collected and conveyed towards the bioretention planter located on the south end of the building.

Storm water will drain via overland, discharging into the bio-retention planter.

Area “DMA-7” – The exterior vehicular drive lane at the east side of the building drains into the self-retaining permeable pavement. Storm water will drain via a subdrain system, discharging into the underground storm system.

Area “DMA-8” – The exterior vehicular drive lane at the west side of the building drains into the self-retaining permeable pavement. Storm water will drain via a subdrain system, discharging into the underground storm system.

Area “DMA-9” – The exterior vehicular drive lane at the north side of the building drains into the self-retaining permeable pavement. Storm water will drain via a subdrain system, discharging into the underground storm system.

Area “DMA-10” – The exterior entry stair-case at the south side of the building drains into the self-retaining permeable pavement. Storm water will drain via a subdrain system, discharging into the underground storm system.

Area “DMA-11” – The exterior entry ramp at the south side of the building drains into the self- retaining permeable pavement. Storm water will drain via a subdrain system, discharging into the underground storm system.

Area “DMA-12” – The north side of Sango Court is collected and conveyed towards the bioretention planter located on the north-west end of the Sango Court. Storm water will drain via overland, discharging into the bio-retention planter.

Area “DMA-13” – The south side of Sango Court is collected and conveyed towards the bioretention planter located on the south-west end of the Sango Court. Storm water will drain via overland, discharging into the bio-retention planter.

Area “DMA-14” – The exterior egress stair-case at the south side of the building drains into the self-retaining permeable pavement. Storm water will drain via a subdrain system, discharging into the underground storm system.

VI.B. Features of all Bio-Retention Planters

Relevant design criteria applicable to all bio-retention planters:

• Minimum 6” deep reservoir (from top of pavement to top of soil) • 18” deep sandy loam with minimum infiltration rate of 5”/hour. • 12” Permeable base rock with subdrain below sandy loam layer. • Irrigation shall be required to maintain plant viability. 72 Item # C7.
8 • Perforated pipe underdrain and connection to storm drain or discharge point if swale located in type “D” soils (clay).
• Provide liner (water isolation) where groundwater is less than 10’ deep or where within 10’ of building.
• Native soils compacted per soils report.
• All other pertinent requirements set forth by the city of Milpitas C3 requirements.

The bio-retention planters operate by filtering the design storm flow through a layer of sandy loam top soil. They provide detention time to allow pollutants to settle out or be trapped by vegetation. Pollutants adhere to soil particles as runoff filters vertically through the soil and collects in the gravel layer below. After collecting in this layer, the treated runoff is collected into storm drain system and is conveyed to the City of Milpitas storm drain system by an onsite storm drainage system. A portion of runoff is expected to infiltrate into the underlying native soil.

VII. Documentation of BMP Construction [to be completed and updated] VII.A. Details of Construction

Construction plans and details are attached to the report showing the locations of all treatment apparatus.

VII.B. Planting Plan

The selected plants vary for the site. Please refer to the planting plan for plant selection specifications.

VII.C. Irrigation System

Please refer to the irrigation plan for said system specifications.

VIII. BMP Maintenance Schedule

Inspection and Maintenance are consistent for the entire site. Routine inspection and maintenance will be conducted approximately monthly throughout the entire year. In addition, the stormwater treatment BMPs will also be inspected following each significant storm.

Site drainage and treatment BMPs will be thoroughly inspected at least once a year prior to the start of the rainy season.

The following checklists are also reproduced as stand-alone sheets to facilitate their use in the field.
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9 VIII.A. Whenever Landscaping within Bio-Retention is maintained

• Maintain the design elevation of the soil surface, which should be 6 inches below the top of pavement for the treatment facility. See the construction drawings for details.

• Remove any soil or debris blocking planter inlets or overflows

• Use only soil that is equivalent to the specified sandy loam top soil. Amendments to planter soils must not reduce the infiltration rate.

• Minimize application of fertilizer.

• Pesticides may be applied only by a licensed pest control operator trained in the use of Integrated Pest Management.

• Confirm that the irrigation is adequate but not excessive. If underdrains flow during dry weather or flow on the surface, reduce irrigation.

VIII.B. Routine Inspection and Maintenance of Drainage System and Planters

• Examine each area drain and clean if necessary.

• Confirm there is no blockage in the connecting pick-up drain lines

• Check inlets and pipes; repair, replace, or replenish as necessary.

• Remove any accumulations of sediment, litter, and debris in the planter.

• Examine the overflow. Remove any debris. Fix any damaged or disconnected piping.

• Check that the soil surface is level and is maintained at the height indicated on the construction documents.

• Note the condition of the vegetation.

• Replace any dead plants.

• Prune or remove any overgrown plants or shrubs that may interfere with the operation of the planter.

• Remove any nuisance or invasive vegetation.

• Clean up fallen leaves or debris and replenish soil.

• Confirm that irrigation is adequate and not excessive. 74 Item # C7.
10 VIII.C. Inspection Following Storms

• Confirm any standing water drains from the surface of the planters within 3-4 hours.

• Remove any debris from curb cuts at planters.

• Remove any accumulations of litter and debris in the planter.

• Check that the soil surface is level and is maintained at the height indicated on the construction documents.

VIII.D. Comprehensive Annual Inspection Prior to Rainy Season (system-wide) • Examine treatment facilities and compare to as-built photographs and drawings. Confirm that drainage has not been altered.

• Examine paving and confirm flow to all treatment facilities is unimpeded.

• Remove any debris from curb cuts at planters.

• Remove any accumulations of litter and debris in the planter.

• Check that the soil surface is level and is maintained at the height indicated on the construction documents.

• Examine the overflow. Remove any debris. Note any damaged or disconnected piping.

• Check cleanouts and confirm underdrain piping is intact and unobstructed.

• Observe the structure of the planters and fix any holes, cracks, or failure.

• Note condition of vegetation. Replace any dead plants. Remove any nuisance or invasive vegetation.

• Clean up fallen leaves or debris and replenish cobbles or soil if needed.

• Prune or remove any overgrown plants or shrubs that may interfere with operation of the planter.

• Confirm that the irrigation is adequate and not excessive. 75 Item # C7.
11 Checklist for Routine Inspection and Maintenance

Examine each area drain and clean if necessary.

Confirm there is no blockage in the connecting pick-up drain line leading to the Infiltration Planter if applicable.

Remove any accumulations of sediment, litter, and debris in the planter.

Examine the overflow. Remove any debris. Fix any damaged or disconnected piping.

Observe the structure of the planters and fix and holes, cracks, or failure.

Check that the soil surface is level and is maintained at the height indicated on the construction documents.

Note the condition of the vegetation.

Replace any dead plants.

Prune or remove any overgrown plants or shrubs that may interfere with the operation of the planter.

Remove any nuisance or invasive vegetation.

Clean up fallen leaves or debris and replenish soil.

Confirm that irrigation is adequate and not excessive.

76 Item # C7.
12 Checklist for Annual Inspection and Maintenance
(Prior to Rainy Season – System Wide)

Examine perimeter swales and compare to as-built photographs and drawings. Confirm that drainage has not been altered.

Examine paving and confirm flow to all infiltration planters is unimpeded.

Remove any debris from curb cuts at swales.

Remove any accumulations of litter and debris in the planter.

Check that the soil surface is level and is maintained at the height indicated on the construction documents.

Examine the overflow. Remove any debris. Note any damaged or disconnected piping.

Check cleanouts and confirm underdrain piping is intact and unobstructed.

Observe the structure of the planters and fix any holes, cracks, or failure.

Note condition of vegetation

Replace any dead plants.

Prune or remove any overgrown plants or shrubs that may interfere with operation of the planter.

Remove any nuisance or invasive vegetation.

Clean up fallen leaves or debris and replenish cobbles or soil if needed.

Confirm that the irrigation is adequate and not excessive.

77 Item # C7.
13 Checklist for Inspection and Maintenance Following Storms

Confirm any standing water drains from the surface of the planters within 3-4 hours.

Remove any debris from curb cuts at swales.

Remove any accumulations of litter and debris in the planter.

Check that the soil surface is level and is maintained at the height indicated on the construction documents.

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81 Item # C7.

CITY OF MILPITAS

AGENDA REPORT
(AR)

Item Title: Approve and Authorize the City Manager to Execute the Public Trail Easement and Maintenance Agreement for a Residential Development at 355 Sango Court by Sango Court, L.P. (Staff Contact: Roberto Alonzo, Principal Civil Engineer, 408- 586-3316)
Category: Consent Calendar-Community Development
Meeting Date: 9/5/2023
Recommendation: Approve and authorize the City Manager to execute the Public Trail Easement and Maintenance Agreement for a residential development at 355 Sango Court by Sango Court, L.P.

BACKGROUND:

On May 23, 2018, the Milpitas Planning Commission approved Developer’s application for a Site Development Permit (SD17-0017), Density Bonus (DB17-0001), and Environmental Assessment (EA18-0001) to allow the construction of a 102-unit multifamily apartment building and associated site improvements. The Project is located on an existing 1.26-acre site at 355 Sango Court., Milpitas, CA 95035.

As part of the approved project, a Public Sidewalk and Pedestrian Access Easement was conveyed by separate instrument (Document 25229220) to the City of Milpitas. Project conditions of approval require the Sango Court, L.P. (the “Developer”) to construct a public trail and the property owner to maintain the public trail within the easement. The Developer has finished construction of the public trail and the Developer has executed an Easement and Maintenance Agreement (the “Agreement”) for perpetual maintenance of public trail improvements.

ANALYSIS:

The Developer constructed public trail improvements to meet the Project Conditions of Approval. The Developer and property owner will be responsible for the perpetual maintenance and operation of the public trail facilities within their private property and inside the Public Sidewalk and Pedestrian Access Easement.

The Developer has executed the required Agreement for this Project. The Agreement requires the developer to operate and maintain the installed public trail facilities in accordance with the Project Conditions of Approval.

Staff recommends the City Council approve the attached Agreement which has been reviewed by the City Attorney.

POLICY ALTERNATIVE(S):

Alternative 1:

Not approve the Agreement with the Developer for operation and maintenance of public trail facilities.

Pros: None

Cons: Not approving the Agreement would cause the project to be not in compliance with the conditions of development and jeopardize the upkeep of public trail facilities on the site.

Reason not recommended: To be in compliance with project conditions of approval and secure the perpetual maintenance of public trail facilities at 355 Sango Court, staff recommends approval of the Agreement.

82 Item # C8.

FISCAL IMPACT:

None.

California Environmental Quality Act (CEQA):

The Planning Division conducted an initial environmental assessment (PEA18-0001) of the project in accordance with the California Environmental Quality Act (CEQA). The Addendum fully addressed all potential impacts associated with this project, and no material changes have been made to the project that would alter the conclusions of the Addendum. The analysis contained in the Environmental Checklist confirms that the modified project is within the scope of the TASP FEIR and will have no new or more severe significant effects and no new mitigation measures are required.

Additionally, the TASP EIR included a program of activities including construction of up to 7,109 residential units within the TASP area. The 100-102 residential units proposed as a part of the Site Development Permit for the 355 Sango Court site fall within this scope of development activity, as the TASP area has not reached its full build out.

Pursuant to Sections 15162 and 15163 of the California Environmental Quality Act, the project is exempt from further environmental analysis. Project design features required of projects covered under the TASP EIR are included as Conditions of Approval, attached hereto as Exhibit I. Based on the foregoing, the project will not have additional environmental impacts beyond those identified in the TASP EIR, no additional environmental review is required, and no new or additional mitigation measures are required.

As a separate and independent basis, the project is also exempt from further CEQA review pursuant to Sections 15183, 15182, and 15169 of the California Environmental Quality Act, as the project is generally consistent with the development density established by existing zoning, specific plan, and general plan and is within the scope of the TASP FEIR. Therefore, no further environmental review is required.

RECOMMENDATION:

Approve and authorize the City Manager to execute a Public Trail Easement and Maintenance Agreement between the City of Milpitas and Sango Court L.P. for the public trail improvements in the Affordable Housing Project at 355 Sango Court.

Attachment(s):

1. Public Trail Easement and Maintenance Agreement

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CITY OF MILPITAS

AGENDA REPORT
(AR)

Item Title: Approve and Authorize the City Manager to Execute the Encroachment and Maintenance Agreement with Sango Court, L.P., for the Installation and Maintenance of Private Landscape Improvements, within City Right-of-way, for the Sango Court Affordable Housing Project Located at 355 Sango Court (Staff Contact: Roberto Alonzo, Principal Civil Engineer, 408-586-3316) Category: Consent Calendar-Community Development
Meeting Date: 9/5/2023
Recommendation: Approve and authorize the City Manager to execute the Encroachment and Maintenance Agreement with Sango Court, L.P., for the installation and maintenance of private landscape improvements, within City Right-of-way, for the Sango Court Affordable Housing Project located at 355 Sango Court.

BACKGROUND:

On May 23, 2018, the Milpitas Planning Commission approved Developer’s application for a Site Development Permit (SD17-0017), Density Bonus (DB17-0001), and Environmental Assessment (EA18-0001) to allow the construction of 102-unit multifamily apartment building and associated site improvements. The Project is located on an existing 1.26-acre site at 355 Sango Court., Milpitas, CA 95035.

Offsite improvements to be constructed include the installation of new privately maintained landscape and irrigation improvements along the newly constructed Sango Court extension’s frontage at the RCD Housing Project.

ANALYSIS:

The Developer has agreed to enter into an Encroachment and Maintenance Agreement (Attached) with the City for the construction of off-site private landscape improvements for the project which are the installation of landscape, and irrigation system and accompanying service boxes, pipes, fixtures, meters, controllers, signage and other miscellaneous appurtenances related to landscape and irrigation system. The landscape improvements will be completed with the on-site work and be maintained by the property owner after completion, reducing the need for City maintenance of landscaping in this area. The maintenance obligation shall run with the land.

POLICY ALTERNATIVE(S):

Alternative 1:

Do not approve granting authorization to the City Manager to approve the Encroachment and Maintenance Agreement Amendment.

Pros: None

Cons: If the Encroachment and Maintenance Agreement is not authorized the City would have to allocate City resources to maintain the landscape improvements. Staff has determined that there will be greater efficiency if the Developer constructs and maintains the landscape improvements.

Reason for Not Recommending: Granting approval of landscape maintenance would free up City Resources and would ensure the City is not liable for landscape maintenance within the terms of the agreement.

FISCAL IMPACT:
105
Item # C9.

There is no fiscal impact to the City for granting the developer encroachment and maintenance responsibilities other than to free up City resources for other maintenance areas within the City.

California Environmental Quality Act (CEQA):

The Planning Division conducted an initial environmental assessment (PEA18-0001) of the project in accordance with the California Environmental Quality Act (CEQA). The Addendum fully addressed all potential impacts associated with this project, and no material changes have been made to the project that would alter the conclusions of the Addendum. The analysis contained in the Environmental Checklist confirms that the modified project is within the scope of the TASP FEIR and will have no new or more severe significant effects and no new mitigation measures are required.

Additionally, the TASP EIR included a program of activities including construction of up to 7,109 residential units within the TASP area. The 100-102 residential units proposed as a part of the Site Development Permit for the 355 Sango Court site fall within this scope of development activity, as the TASP area has not reached its full build out.

Pursuant to Sections 15162 and 15163 of the California Environmental Quality Act, the project is exempt from further environmental analysis. Project design features required of projects covered under the TASP EIR are included as Conditions of Approval, attached hereto as Exhibit I. Based on the foregoing, the project will not have additional environmental impacts beyond those identified in the TASP EIR, no additional environmental review is required, and no new or additional mitigation measures are required.

As a separate and independent basis, the project is also exempt from further CEQA review pursuant to Sections 15183, 15182, and 15169 of the California Environmental Quality Act, as the project is generally consistent with the development density established by existing zoning, specific plan, and general plan and is within the scope of the TASP FEIR. Therefore, no further environmental review is required.

RECOMMENDATION:

Approve and Authorize the City Manager to Execute the Encroachment and Maintenance Agreement with Sango Court, L.P., for the installation and maintenance of private landscape improvements, within City Right- of-way, for the Sango Court Affordable Housing Project located at 355 Sango Court.

Attachment(s):

1. Encroachment and Maintenance Agreement

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Prelim 54606-1647727

LEGAL DESCRIPTION
Real Property in the City of Milpitas, County of Santa Clara, State of California, described as follows:

ALL OF PARCEL 5, AS SHOWN ON THAT CERTAIN MAP ENTITLED, "PARCEL MAP", WHICH MAP WAS

FILED FOR RECORD IN THE OFFICE OF THE RECORDER OF THE COUNTY OF SANTA CLARA, STATE OF CALIFORNIA ON APRIL 22, 1974 IN BOOK 338 OF MAPS, AT PAGE(S) 42.

APN: 086-36-013
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ENGINEERING DIVISION

CITY OF MILPITAS
Record Drawings
Record Drawings

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SAN DIEGO, CA 92104
T: 619.269.4423

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NO. B-S120-0015 FOR

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SANGO
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PLANTING LEGEND

PLANTING NOTES
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CITY OF MILPITAS

AGENDA REPORT
(AR)

Item Title: Receive the April – June 2023 Report for Unhoused Services (Staff Contact: Alex Andrade, Economic Development Director, 408-586-3046)
Category: Consent Calendar-Community Development
Meeting Date: 9/5/2023
Recommendation: Receive the April – June 2023 report for unhoused services.

BACKGROUND:

On November 10, 2020, City Council approved and authorized staff to enter into an agreement for homeless outreach and assessment services with Santa Clara County Office of Supportive Housing. The County’s Homeless Engagement and Access Team (HEAT), via Abode Services, began conducting outreach in March 2021 to engage and provide resources to the city’s unhoused residents. On March 15, 2022, City Council approved using American Rescue Plan Act (ARPA) to continue funding HEAT through December 2023.

On December 1, 2020, City Council directed staff to implement a six-month pilot mobile shower and laundry program. The nonprofit service provider, WeHOPE’s Dignity on Wheel program, began providing mobile shower and laundry services every Sunday starting March 21, 2021, on Winsor Street, immediately south of the Milpitas Library. On September 7, 2021, the City Council directed staff to continue the mobile shower and laundry program for an additional 12 months. On September 6, 2022, the City Council approved a continuation of services, and on April 4, 2022, City Council approved gap funding to cover services through June 30, 2023. In July 2023, the City executed a second contract with WeHOPE for a not-to-exceed amount of $150,000 to continue the mobile shower and laundry program until June 30, 2026.

This report reflects the April - June 2023 progress for unhoused services.

ANALYSIS:

From April - June 2023, the HEAT Team continued to collaborate with City staff and the County Office of Supportive Housing to conduct outreach throughout the city of Milpitas to engage and provide resources to the city’s unhoused residents. The HEAT Team provided basic needs items and transportation resources. The HEAT Team continued to foster rapport with unhoused residents to provide housing and employment resources, as well as to coordinate care with the Office of Supportive Housing. During the months of April, May, and June, the HEAT Team enrolled 9 clients and completed 12 assessments. Adding to 231 clients enrolled and 253 clients assessed since services began in March 2021, this makes a total of 240 clients enrolled and 265 clients assessed. Since the HEAT Team has been conducting proactive outreach throughout Milpitas, they have been able to locate and connect with unhoused residents both at known and new locations.

For the unhoused individuals that did not provide identifying information for the HEAT Team to enroll or assess, they provided basic needs items and community resources. See Attachments 2-4 for the HEAT Team April – June 2023 reports.

From April – June 2023, WeHOPE provided 13 sessions to the unhoused community, providing a total of 209 showers and 103 loads of laundry, serving 167 unduplicated individuals. See Attachment 5 for the WeHOPE Dignity on Wheels April – June 2023 reports.

In addition to working closely with the above service providers, City departments continued to collaborate in providing assistance to the unhoused residents. Referrals to the HEAT Team continue to be provided through the City’s referral process. This process has reduced internal messaging and maximized the HEAT Team’s ability to quickly respond to requests for assessments and to provide updates to City staff. For a summary of the various activities and services for Milpitas unhoused residents as described above, refer to Attachment 1 for the April – June 2023 report for unhoused services. 127 Item # C10.

FISCAL IMPACT:

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

California Environmental Quality Act (CEQA):

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 15061(b)(3).

RECOMMENDATION:

Receive the April – June 2023 report for unhoused services.

Attachment(s):

1. April - June 2023 report for unhoused services

2. April 2023 HEAT Team report

3. May 2023 HEAT Team report

4. June 2023 HEAT Team report

5. April – June WeHOPE Dignity on Wheels

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Date
Referred
1 Hillview Bridge Encampment Valley Water N/A
2 Topaz Street 1 Encampment City N/A
3 Serra Center Encampment Private Property N/A
4 Ocean Supermarket Encampment or Outreach Private Property N/A 5 Dixon Road 1 Encampment City N/A
6 Dixon Road 2 RV Vehicles City N/A
7 Calaveras Blvd Overpass Encampment City N/A
8 Dempsey Road 1 Encampment City N/A
9 Sinclair Frontage Road Encampment or Outreach Union Pacific Railroad 1 6/15/2023 N/A 1 6/15/2023 1 6/15/2023 10 Yosemite Business Park Encampment Private Property N/A 11 Gibraltar Court Trailers City N/A
12 Topaz Street 2 Encampment City N/A
13 Railroad Court Camp/Trailers City N/A
14 Abel Plaza Encampment Private Property N/A
15 S. Main Street Encampment City N/A
16 S. Abbott Avenue Encampment City (if on street) or County (if on County property) N/A
17 W. Calaveras Blvd Encampment City N/A
18 Ethyl Court Camp/Cars City N/A
19 Hammond Way Cars/Trailers or Outreach City N/A
20 Coyote Creek Trail 1 Encampment Valley Water N/A
21 Coyote Creek Trail 2 Encampment Valley Water N/A
22 Coyote Creek Trail 3 Encampment Valley Water N/A
23 Calaveras Plaza Shopping Center Outreach (contact made in non-encampment setting) N/A 1 4/17/2023 N/A 1 4/17/2023 1 4/17/2023 24 Dignity on Wheels Mobile Shower and Laundry Outreach (contact made in non-encampment setting) N/A N/A 25 Dixon Landing Shopping Center Outreach (contact made in non-encampment setting) N/A N/A 26 Great Mall Outreach (contact made in non-encampment setting) N/A N/A 27 Milpitas Library Outreach (contact made in non-encampment setting) N/A N/A 28 Main Street Outreach (contact made in non-encampment setting) N/A N/A 29 Other (Street, Panhandle, Vehicle Dweller, or Unidentified Location) Outreach (contact made in non-encampment setting) N/A 1 6/26/2023 1 6/26/2023 1 6/6/2023 30 Dempsey Road 2 Encampment Private Property N/A
31 Serra Center Outreach (contact made in non-encampment setting) N/A N/A 32 E. Calaveras Blvd Outreach (contact made in non-encampment setting) N/A N/A 33 Dempsey Road 3 Outreach (contact made in non-encampment setting) N/A N/A 34 Galaxy Court Outreach (contact made in non-encampment setting) N/A N/A 35 Ranch Drive Outreach (contact made in non-encampment setting) N/A N/A 36 Jacklin Rd Vehicle City N/A
37 Folsom Ct Outreach (contact made in non-encampment setting) N/A N/A 38 Other (near Extended Stay) Outreach (contact made in non-encampment setting) N/A N/A 39 S. Park Victoria Outreach (contact made in non-encampment setting) N/A N/A 40 O'Toole Elms Park Outreach (contact made in non-encampment setting) City N/A 41 America's Best Value Inn Outreach (contact made in non-encampment setting) Private Property 2 1
1 1
4/18/2023
4/15/2023
5/05/2023
6/05/2023
N/A
2 1
0 0
4/18/2023
4/15/2023
2 1
1 1
4/18/2023
4/15/2023
5/05/2023
6/05/2023
Previously enrolled participants
42 Milpitas Sports Center Park Outreach (contact made in non-encampment setting) City N/A 43 Foothill Park Outreach (contact made in non-encampment setting) City N/A 44 Washington Road Vehicle City 1 5/5/2023 N/A 0 1 5/5/2023 Previously enrolled participant 45 Burley Drive Vehicle City N/A
46 W. Calaveras Blvd Outreach (contact made in non-encampment setting) N/A N/A 47 Albert Augustine Jr. Memorial Park Outreach (contact made in non-encampment setting) N/A N/A 48 N. Milpitas Bridge Encampment N/A N/A
49 Victorian Sqaure Outreach (contact made in non-encampment setting) N/A N/A 50 Calaveras 3 Encampment N/A N/A
51 Cardoza Park Outreach (contact made in non-encampment setting) N/A N/A 52 Railroad Avenue Encampment N/A N/A
53 Sunnyhills Shopping Center Outreach (contact made in non-encampment setting) N/A N/A 54 Pioneer Park Vehicle N/A N/A
55 McCarthy Ranch Vehicle N/A 1 4/17/2023 N/A 0 1 4/17/2023 Previously enrolled participant 56 Yosemite 6 Encampment N/A N/A
57 Beresford Square Outreach (contact made in non-encampment setting) N/A N/A 58 Escuela Parkway Outreach (contact made in non-encampment setting) N/A 1 5/5/2023 N/A 1 5/5/2023 1 5/5/2023 Total
Session Location
Milpitas Library
Milpitas Library
Milpitas Library
Unhoused
Count Date Counted
ATTACHMENT 1 APRIL - JUNE 2023 REPORT FOR UNHOUSED SERVICES Date
HousedJurisdictionOutreach Location Type NotesDate Assessed Clients Assessed Clients Enrolled Date Enrolled Clients
Housed
Number of Sessions Total Unduplicated Individuals Served Showers Provided 23 99WeHOPE Dignity on Wheels
Mobile Shower and Laundry 61 53 20
4/2/2023, 4/9/2023, 4/16/2023, 4/23/2023, 4/30/2023 5 60 57 5/7/2023, 5/14/2023, 5/21/2023, 5/28/2023 4
60 Loads of Laundry Provided
6/4/2023, 6/11/2023, 6/18/2023, 6/25/2023 4 46
Service Dates
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Santa Clara County Office of Supportive Housing
Abode Services - SCC Outreach
(Milpitas) HEAT Team
June 2023 Report

In the month of June, the HEAT Team received 31 referrals from the E-Referral source. The HEAT Team was also contacted by a Field Representative for Assemblyman Alex Lee regarding more specific information and support of two unhoused individuals. HEAT Program Manager maintained compliance and did not speak to him about individuals, but instead educated him on PSH and CET.

Staff transitions onto and off of the HEAT Team required many clients to learn who their new care team members are. Staff who transitioned out, thoroughly communicated new information and conducted a warm hand off of new staff to clients. New staff members worked diligently to learn the clients and understand their needs as well as learn the city of and Milpitas and systems required to execute quality outreach and engagement.

Rapport building was a strong focus as staff aimed for successful engagement with current Milpitas enrollments and with new outreaches and enrollments. Clients' needs were significant as they continued to wait for program referrals and endure the weather changes.

The HEAT Team administered four assessments throughout the month. Of these assessments, zero were existing enrollments and qualified for re-assessment. Three were new assessments and qualified for enrollment. One was a new assessment and did not qualify for HEAT enrollment.

The HEAT staff continued to maintain supportive contact and worked alongside these clients as they coordinated care and completed their pre-screening calls with the SCC Office of Supportive Housing. The team continued to provide felt-need items to Milpitas individuals who were outdoors or in their vehicles. Again, rapport building was essential as a new team continued to build connections with Milpitas individuals and coordinate support with OSH Treatment Team.

The following table reflects the number of outreach contacts, the total number of unhoused enrolled into the SCC HEAT program, as well as the number of VI-SPDAT assessments administered:

Milpitas HEAT Contact, Enrolled, Assessed Clients:

June 2023

Outreach Location

Outreach
Contact
Enrolled

Assessments

Milpitas Outreach -Americas Best Value
Inn 1 0* 1
6/5/2023 1 1 1
Milpitas Outreach- Town Center
6/5/2023
1 1 1
Milpitas Encampment- Sinclair Frontage 5
6/15/2023 1 1 1
Milpitas Outreach- Other (Street,
Panhandle, or Unidentified Location)

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Item # C10.
6/26/2023 1 1 1
Grand Total 4 4 4

KEY:
• Milpitas Outreach= Contact made with client in
non- encampment setting

• Milpitas Encampment= Contact made at a
location where a tent and/or other structures are
used as shelter
• *Previously enrolled participant

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Attachment 5
WeHOPE Mobile Shower and Laundry Services
April – June 2023

Month Service Dates Number of
Sessions
Total
Unduplicated
Individuals
Served
Showers
Provided
Loads of
Laundry
Provided
April
2023
April 2
April 9
April 16
April 23
April 30

5 60

57 23
May
2023
May 7
May 14
May 21
May 28
4 61 53 20
June
2023
June 4
June 11
June 18
June 25
4 46 99 60
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Item # C10.

CITY OF MILPITAS

AGENDA REPORT
(AR)

Item Title: Accept and Approve a Budget Appropriation of $200,000 and Authorize the Acting City Manager or Designee to execute an agreement with Housekeys for Administration of City’s Below Market Rate Homeownership Program (Staff Contact: Alex Andrade, Economic Development Director, 408-586-3046; and Robert Musallam, Housing and Neighborhood Services Administrator, 408-586- 3275) Category: Consent Calendar-Community Development
Meeting Date: 9/5/2023
Recommendation: Accept and approve a budget appropriation of $200,000 from the Affordable Housing and Community Benefit Fund and authorize the Acting City Manager or Designee to execute an agreement with Housekeys for Administration of City’s Below Market Rate Homeownership Program.

BACKGROUND:

The City of Milpitas Below Market Rate (BMR) Program is designed for low-and moderate-income households in becoming homeowners. The program’s portfolio is comprised of 278 homeownership units. These units became a part of the City’s homeownership portfolio via the former Redevelopment Agency that provided financial assistance to developers in creating housing. As an exchange for the financial assistance, the development community allocated a percentage of the units as affordable. Historically, the City has administered the management, purchase, and sale of these units.

On June 19, 2018, the City adopted an Affordable Housing Ordinance which requires residential developments of 10 or more units to make 15% of the total units of the development project affordable. Due to the Ordinance, the City is expected to add more than 50 homeownership units to its portfolio over the next three years. The amount of time needed to sell and monitor these units required staff to look at external support. This report provides information on Housekeys, a third-party administrator who specialize in streamlining the administration of Below Market Rate programs and who do so for more than 15 cities across California. This report will delve deeper into Housekeys’ scope of service and the City’s anticipated saving in funds by outsourcing the BMR ownership portfolio.

ANALYSIS:

Currently, Housekeys is the sole servicer in the Bay Area of BMR program administration that had the capacity to take on Milpitas’ homeownership portfolio. Staff researched BMR program administrators and, due to the high specialization, and only found two other administrator options, Rise Housing and Alta Housing. Rise Housing was unable to provide a bid for services as they did not have the capacity to take on additional public agency services. Alta Housing services cities in the northern part of Santa Clara County and Milpitas is out of their service area. In staff’s opinion, Housekeys has a strong infrastructure and excellent capacity to integrate and handle the City’s BMR needs. Housekeys also represents other local jurisdictions. For reference, Housekeys services other cities such as Morgan Hill, Campbell, Santa Clara, Mountain View, and Gilroy.

If approved by the City Council, Housekeys will manage the existing 278 BMR homeownership units as well as all future BMR ownership units, of which at least 50 units are expected in the next three years. Housekeys will help the City create program guidelines, complete an inventory assessment, review the eligibility of all applicants and host lotteries for all BMR units being sold, develop educational resources, and conduct compliance. Housekeys also has its own online platform and will assist the City in ensuring all documentation is up to date and in electronic files.
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The City’s first residential development to satisfy the Affordable Housing Ordinance added four BMR units to the City’s portfolio. In June 2022, City staff completed the sale of 4 units without third party assistance. These transactions required extraordinary staff resources and time to execute, while operating the Housing work program with limited resources. As previously stated, staff expects an increase in BMR units in the coming years, and outsourcing the BMR Program will allow Housing team to focus on the increasing workload related to unhoused services and other Council related Housing objectives as needed.

Currently, the Housing Division has 3 Full-time Equivalent (FTE) staff members and are currently recruiting for a Limited-Term Administrative Analyst. The Housing team consists of 1 FTE Housing Division Manager, 1 FTE for Unhoused and Supportive Services, and 1 FTE for Community Development Block Grant (CDBG). The Housing Limited-Term Administrative Analyst is partially funded through the American Rescue Plan Act (ARPA), which requires assisting with the administration of the Rent and Mortgage Relief Program. To administer a successful BMR Homeownership program that is expected to grow to 300+ units, the City would need to add a minimum of 1.5 FTE to satisfy the additional workload. Presently, the Housing division does not have the resources to administer the BMR program, while managing current and future Housing demands.

As a third-party administrator, Housekeys will create and maintain Milpitas’ BMR homeownership website. This allows current and prospective BMR owners to access their docs more readily. Housekeys will be the transaction coordinator for all real estate transactions which include ensuring affordability deeds are recorded and conducting resale calculations and refinancing requests. They will help with the sale and resale of units, the selection process, collection of Agency fees, and any monitoring, compliance, resolution, or loss mitigation needed. Housekeys will work with City Staff to update and maintain program guidelines and materials.

Outreach will also be done in coordination with City Staff. Housekeys will conduct webinar and pre-recorded orientations at a minimum of 6 per year. Housekeys will also conduct home buyer education and training classes which is a requirement to apply for the Milpitas BMR Program.

Housekeys online 24/7 portal allows all current and prospective BMR owners to submit documentation and requests at their convenience. Quarterly reports will be sent to City Staff and any general inquiry or loan request from the public will receive a response within 72 business hours. Housekeys state that there will be weekly status updates for any outstanding requests. They will also complete at least 2 rounds of annual certification letters to homeowners to help the owners and the City with compliance data collection.

Staff recommends the authorization to execute a single year contract with Housekeys (Attachment 1). The cost for the administration of the program will be an initial $50,000 start-up fee as well as $150,000 for a total of $200,000 to administer the 278 existing units in our portfolio for this first fiscal year. The contract will include an additional four (4) one-year options to renew, for a total term length not to exceed five (5) years. Staff will return to Council annually via the budget process for approval should the options be executed. Each subsequent year will be charged based on the number of units Housekeys has to manage in our portfolio. For year 1, staff recommends allocating these funds from the Affordable Housing and Community Benefit Fund.

FISCAL IMPACT:

If the City Council approves staff’s recommendation to authorize Housekeys as the City’s Below Market Rate Homeownership Program administrator, the fiscal impact includes $200,000 being utilized from the Affordable Housing and Community Benefit Fund.

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.

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Item # C11.

RECOMMENDATION:

Accept and Approve a Budget Appropriation of $200,000 from the Affordable Housing and Community Benefit Fund and Authorize the Acting City Manager or Designee to execute an agreement with Housekeys for Administration of City’s Below Market Rate Homeownership Program.

Attachment(s):

1. General Service Agreement
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Item # C11.
38077.00180\31932669.6 C2

CITY OF MILPITAS

AGREEMENT FOR BELOW MARKET RATE

PROGRAM ADMINISTRATION

1. PARTIES AND DATE.

This Agreement for Below Market Rate (BMR) Program Administration (“Agreement”) is made and entered into as of ________________ (“Effective Date”) by and between the City of Milpitas, a municipal corporation organized under the laws of the State of California with its principal place of business at 455 E. Calaveras Boulevard, Milpitas, California 95035 (“City”) and Housekeys Inc. , a California corporation with its principal place of business at 385 Digital Drive, Morgan Hill, CA 95037 (“Contractor”). City and Contractor are sometimes individually referred to as “Party” and collectively as “Parties” in this Agreement.

2. RECITALS.

2.1 Contractor.

Contractor desires to perform and assume responsibility for the provision of certain Below Market Rate Program Administration required by City on the terms and conditions set forth in this Agreement.

Contractor represents that it is experienced in providing BMR Program Administration to public clients, is licensed in the State of California, and is familiar with the plans of City.

2.2 Project.

City desires to engage Contractor to render such services for the administration of the City’s BMR Home Ownership Portfolio (“Project”) as set forth in this Agreement.

3. TERMS.

3.1 Scope of Services and Term.

3.1.1 General Scope of Services. Contractor promises and agrees to furnish to City all labor, materials, tools, equipment, services, and incidental and customary work necessary to fully and adequately supply the services and advice on various issues affecting the decis ions of City regarding the Project and on other programs and matters affecting City (“Services”). The Services are more particularly described in Exhibit “A” attached hereto and incorporated herein by reference. All Services shall be subject to, and performed in accordance with, this Agreement, the exhibits attached hereto and incorporated herein by reference, and all applicable local, state and federal laws, rules and regulations.

3.1.2 Term.

The initial term of this Agreement shall be from July 1, 2023 to June 30, 202 4, unless earlier terminated as provided herein. The term shall include four (4) one -year options to extend the contract, subject to yearly City Council budget approval. The City reserves the right to review the Contractor’s performance at the end of each year and cancel all or part of the Agreement.

3.2 Responsibilities of Contractor.

3.2.1 Control and Payment of Subordinates; Independent Contractor. The Services shall be performed by Contractor or under its supervision. Contractor will determine the means, methods and 138
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38077.00180\31932669.6 C2

2 details of performing the Services subject to the requirements of this Agreement. City retains Contractor on an independent contractor basis and not as an employee of City. Contractor retains the right to perform similar or different services for others during the term of this Agreement. Any additional personnel performing the Services under this Agreement on behalf of Contractor shall also not be employees of City and shall at all times be under Contractor's exclusive direction and control. Contractor shall pay all wages, salaries, and other amounts due such personnel in connection with their performance of Services under this Agreement and as required by law. Contractor shall be responsible for all reports and obligations respecting such additional personnel, including, but not limited to: social security taxes, income tax withholding, unemployment insurance, disability insurance, and workers' compensation insurance.

3.2.2 Schedule of Services. Contractor shall perform the Services expeditiously, within the term of this Agreement, and in accordance with the Schedule of Services set forth in Exhibit “B” attached hereto and incorporated herein by reference. Contractor represents that it has the skilled personnel required to perform the Ser vices in conformance with such conditions. In order to facilitate Contractor's conformance with the Schedule, City shall respond to Contractor's submittals in a timely manner. Upon request of City, Contractor shall provide a more detailed schedule of ant icipated performance to meet the Schedule of Services.

3.2.3 Conformance to Applicable Requirements. All work prepared by Contractor shall be subject to the approval of City.

3.2.4 Substitution of Key Personnel. Contractor has represented to City that certain key personnel will perform and coordinate the Services under this Agreement. Should one or more of such personnel become unavailable, Contractor may substitute other personnel of at least equal competence and experience upon written approval of City. In the ev ent that City and Contractor cannot agree as to the substitution of key personnel, City shall be entitled to terminate this Agreement for cause. As discussed below, any personnel who fail or refuse to perform the Services in a manner acceptable to City, or who are determined by City to be uncooperative, incompetent, a threat to the adequate or timely completion of the Project or a threat to the safety of persons or property, shall be promptly removed from the Project by Contractor at the request of City. The key personnel for performance of this Agreement are as follows:

Thomas J. Clark.

3.2.5 City's Representative. City hereby designates Robert Musallam, or his or her designee, to act as its representative for the performance of this Agreement (“City's Representative”). City's Representative shall have the power to act on behalf of City for all purposes under this Agreement.

Contractor shall not accept direction or orders from any person other than City's Representative or his or her designee.

3.2.6 Contractor's Representative. Contractor hereby designates Christopher Jue, or his or her designee, to act as its representative for the performance of this Agreement (“Contractor's Representative”). Contractor's Representative shall have full authority to represent an d act on behalf of Contractor for all purposes under this Agreement. Contractor's Representative shall supervise and direct the Services, using his or her best skill and attention, and shall be responsible for all means, methods, techniques, sequences and procedures and for the satisfactory coordination of all portions of the Services under this Agreement.

3.2.7 Coordination of Services. Contractor agrees to work closely with City staff in the performance of Services and shall be available to City's staff, cont ractors and other staff at all reasonable times.
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3 3.2.8 Standard of Care; Performance of Employees . Contractor shall perform all Services under this Agreement in a skillful and competent manner, consistent with the standards generally recognized as being employed by contractors in the same discipline in the State of California. Contractor represents and maintains that it is skilled in the calling necessary to perform the Services. Contractor warrants that all employees and subcontractors shall have sufficient s kill and experience to perform the Services assigned to them. Finally, Contractor represents that it, its employees and subcontractors have all licenses, permits, qualifications and approvals of whatever nature that are legally required to perform the Services, including any required business license, and that such licenses and approvals shall be maintained throughout the term of this Agreement. As provided for in the indemnification provisions of this Agreement, Contractor shall perform, at its own cost and expense and without reimbursement from City, any services necessary to correct errors or omissions which are caused by Contractor's failure to comply with the standard of care provided for herein, and shall be fully responsible to City for all damages and other liabilities provided for in the indemnification provisions of this Agreement arising from the Contractor’s errors and omissions.. Any employee of Contractor or its subcontractors who is determined by City to be uncooperative, incompetent, a thre at to the adequate or timely completion of the Project, a threat to the safety of persons or property, or any employee who fails or refuses to perform the Services in a manner acceptable to City, shall be promptly removed from the Project by Contractor and shall not be re-employed to perform any of the Services or to work on the Project.

3.2.9 Laws and Regulations . Contractor shall keep itself fully informed of and in compliance with all local, state and federal laws, rules and regulations in any manner affectin g the performance of the Project or the Services, including all Cal/OSHA requirements, and shall give all notices required by law. Contractor shall be liable for all violations of such laws and regulations in connection with Services. If Contractor performs any work knowing it to be contrary to such laws, rules and regulations and without giving written notice to City, Contractor shall be solely responsible for all costs arising therefrom. Contractor shall defend, indemnify and hold City, its officials, officers, employees and agents free and harmless, pursuant to the indemnification provisions of this Agreement, from any claim or liability arising out of any failure or alleged failure to comply with such laws, rules or regulations.

3.2.10 Insurance. Contractor shall not commence work for the City until it has provided evidence satisfactory to the City it has secured all insurance required under Exhibit “D” (Insurance Requirements), attached hereto and incorporated herein by this reference. In addition, Contractor shall not allow any subcontractor to commence work on any subcontract until it has secured all insurance required therein.

3.2.11 Safety. Contractor shall execute and maintain its work so as to avoid injury or damage to any person or property. In carrying out its Services, Contractor shall at all times be in compliance with all applicable local, state and federal laws, rules and regulations, and shall exercise all necessary precautions for the safety of employees appropriate to the nature of the work and the conditions under which the work is to be performed. Safety precautions as applicable shall include, but shall not be limited to: (A) adequate life protection and life saving equipment and procedures; (B) instructions in accident prevention for all employ ees and subcontractors, such as safe walkways, scaffolds, fall protection ladders, bridges, gang planks, confined space procedures, trenching and shoring, equipment and other safety devices, equipment and wearing apparel as are necessary or lawfully requir ed to prevent accidents or injuries; and (C) adequate facilities for the proper inspection and maintenance of all safety measures.

3.3 Fees and Payments.

3.3.1 Compensation. Contractor shall receive compensation, including authorized reimbursements, for all Services rendered under this Agreement at the rates set forth in Exhibit ”C” attached hereto and incorporated herein by reference. The total compensation shall not exceed Two Hundred 140
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4 Thousand Dollars ($200,000) per year without written approval of City’s City Manager. Extra Work may be authorized, as described below, and if authorized, will be compensated at the rates and manner set forth in this Agreement.

3.3.2 Payment of Compensation . Contractor shall be paid the annual fee outlined in section 3.3.1 by City in mont hly installments paid by the first Friday of each month. Contractor will be provide a monthly billing statement to City. The statement shall describe the amount of Services and supplies provided since the initial commencement date, or since the start of the subsequent billing periods, as appropriate, through the date of the statement. City shall, within forty -five (45) days of receiving such statement, review the statement and pay all approved charges thereon. The City shall not be responsible for any payment of any portion of the annual fee incurred after termination of the Agreement.

3.3.3 Reimbursement for Expenses. Contractor shall not be reimbursed for any expenses unless authorized in writing by City.

3.3.4 Extra Work. At any time during the term of this Agreement, City may request that Contractor perform Extra Work. As used herein, “Extra Work” means any work which is determined by City to be necessary for the proper completion of the Project, but which the parties did not reasonably anticipate would be ne cessary at the execution of this Agreement. Contractor shall not perform, nor be compensated for, Extra Work without written authorization from City's Representative.

3.3.5 California Labor Code Requirements
(a) Contractor is aware of 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 (“Prevailing Wage Laws”). If the Services are being perfo rmed as part of an applicable “public works” or “maintenance” project, as defined by the Prevailing Wage Laws, and if the total compensation is $1,000 or more, Contractor agrees to fully comply with such Prevailing Wage Laws. Contractor shall defend, inde mnify and hold the 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 mandator y upon the Contractor and all subcontractors 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), certif ied payroll records (Labor Code Sections 1771.4 and 1776), hours of labor (Labor Code Sections 1813 and 1815) and debarment of contractors and subcontractors (Labor Code Section 1777.1). The requirement to submit certified payroll records directly to the Labor Commissioner under Labor Code section 1771.4 shall not apply to work performed on a public works project that is exempt pursuant to the small project exemption specified in Labor Code Section 1771.4.
(b) If the Services are being performed as part of an applicable “public works” or “maintenance” project, then pursuant to Labor Code Sections 1725.5 and 1771.1, the Contractor and all subcontractors performing such Services must be registered with the Department of Industrial Relations.

Contractor shall mai ntain registration for the duration of the Project and require the same of any subcontractors, as applicable. Notwithstanding the foregoing, the contractor registration requirements mandated by Labor Code Sections 1725.5 and 1771.1 shall not apply to work performed on a public works project that is exempt pursuant to the small project exemption specified in Labor Code Sections 1725.5 and 1771.1.
(c) This Agreement may also be subject to compliance monitoring and enforcement by the Department of Industrial Rela tions. It shall be Contractor’s sole responsibility to 141
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5 comply with all applicable registration and labor compliance requirements. Any stop orders issued by the Department of Industrial Relations against Contractor or any subcontractor that affect Contrac tor’s performance of Services, including any delay, shall be Contractor’s sole responsibility. Any delay arising out of or resulting from such stop orders shall be considered Contractor caused delay and shall not be compensable by the City. Contractor sh all defend, indemnify and hold the City, its officials, officers, employees and agents free and harmless from any claim or liability arising out of stop orders issued by the Department of Industrial Relations against Contractor or any subcontractor.

3.4 Accounting Records.

3.4.1 Maintenance and Inspection . Contractor shall maintain complete and accurate records with respect to all costs and expenses incurred and fees charged under this Agreement. All such records shall be clearly identifiable. Contractor shall allow a representative of City during normal business hours to examine, audit, and make transcripts or copies of such records and any other documents created pursuant to this Agreement. Contractor shall allow inspection of all work, data, documents, proceedin gs, and activities related to the Agreement for a period of three (3) years from the date of final payment under this Agreement.

3.5 General Provisions.

3.5.1 Termination of Agreement.
(a) Grounds for Termination . Notwithstanding any other provisions of this Agreement, City may terminate this Agreement at any time, with or without cause, in its sole discretion, by giving notice in writing to Contractor of such termination. In the even of termination, the Contractor shall have the right and obligation to promptly assemble the work then in progress for the purpose of completing the work and delivering all materials and documents to the City. (b) Termination Without Cause. To ensure a seamless transition and facilitate the recovery of fees earned for services rendered, a minimum notice period of one months shall be observed for any termination without cause. The Contractor shall be entitled to receive compensation for the services rendered and fees earned up until the termination date. (c) Termination With Cause . In the event of termination for cause, the Contractor need be compensated only to the extent required by law. Contractor is only entitled to compensation for work adequately performed prior to termination. (d) Effect of Termination. If this Agreement is terminated as provided herein, City may require Contractor to provide all finished or unfinished Documents and Data, as defined below, and other information of any kind prepared by Contractor in connection with the performance of Services under this Agreement. Contractor shall be required to provide such document and other information within fifteen (15) days of the request.
(e) Additional Services. In the event this Agreement is terminated in whole or in part as provided herein, City may procure, upon such terms and in such m anner as it may determine appropriate, services similar to those terminated.

3.5.2 Delivery of Notices. All notices permitted or required under this Agreement shall be given to the respective parties at the following address, or at such other address as the respective parties may provide in writing for this purpose:

Contractor:
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6 HouseKeys
358 Digital Drive
Morgan Hill, CA 95037
Attn: Christopher Jue

City:

City of Milpitas
455 E. Calaveras Boulevard
Milpitas, California 95035
Attn: Acting City Manager

Such notice shall be deemed made when personally delivered or when mailed, forty-eight (48) hours after deposit in the U.S. Mail, first class postage prepaid and addressed to the party at its applicable address.

Actual notice shall be deemed adequate notice on the date actual notice occurred, regardless of the method of service.

3.5.3 Cooperation; Further Acts. The Parties shall fully cooperate with one another, and shall take any additional acts or sign any additional documents as may be necessary, appropriate or convenient to attain the purposes of this Agreement.

3.5.4 Attorneys’ Fees. If either party commences an action against the other party, either legal, administrative or otherwise, arising out of or in connection with this Agreement, the prevailing party in such litigation shall be entitled to have and recover from the losing party reasonable attorneys’ fees and all costs of such action.

3.5.5 Indemnification. With respect to all matters, Contractor agrees to indemnify, defend (with counsel reasonably satisfactory to the City) and hold harmless the City, its officers, officials, directors, agents, representatives, volunteers, and employees to the fullest extent allowed by law from any and all claims, actions, causes of action, losses, damages, liabilities and costs of every nature, including but not limited to all claims, actions, causes of action, losses, damages, liabilities for property damage, bodily injury, or death, and all costs of defending any claim, caused by or arising out of, or alleged to have been caused by or arise out of, in whole or in part, Contractor’s performance under this Agreement, except for any claims, actions, causes of action, losses, damages, costs or liabilities proximately caused by:
(a) The sole negligence or willful misconduct of City.

City shall not be liable for acts of Contractor in performing services described herein.

3.5.6 Entire Agreement. This Agreement contains the entire Agreement of the parties with respect to the subject matter hereof, and supersedes all prior negotiations, understandings or agreements. This Agreement may only be supplemented, amended or modified by a writing signed by both Parties.

3.5.7 Governing Law. This Agreement shall be governed by the laws of the State of California. Venue shall be in Santa Clara County.

3.5.8 Time of Essence . Time is of the essence for each and every provision of this Agreement.
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7 3.5.9 City's Right to Employ Other Contractors. City reserves the right to employ other Contractors in connection with this Project.

3.5.10 Successors and Assigns. This Agreement shall be binding on the successors and assigns of the parties.

3.5.11 Assignment or Transfer . Contractor shall not assign, hypothecate, or transfer, either directly or by operation of law, this Agreement or any interest herein without the prior written consent of City. Any attempt to do so shall be null and void, and any assignees, hypothecates or transferees shall acquire no right or interest by reason of such attempted assignment, hypothecation or transfer.

3.5.12 Construction; References; Captions . Since the Parties or their agents have participated fully in the preparation of this Agreement, the language of this Agreement shall be construed simply, according to its fair meaning, and not strictly for or against any Party. Any term referencing time, days o r period for performance shall be deemed calendar days and not work days. All references to Contractor include all personnel, employees, agents, and subcontractors of Contractor, except as otherwise specified in this Agreement. All references to City include its elected officials, officers, employees, agents, and volunteers except as otherwise specified in this Agreement. The captions of the various articles and paragraphs are for convenience and ease of reference only, and do not define, limit, augment, or describe the scope, content, or intent of this Agreement.

3.5.13 Amendment; Modification. No supplement, modification, or amendment of this Agreement shall be binding unless executed in writing and signed by both Parties.

3.5.14 Waiver. No waiver of any default shall constitute a waiver of any other default or breach, whether of the same or other covenant or condition. No waiver, benefit, privilege, or service voluntarily given or performed by a Party shall give the other Party any contractual rights by custom, estoppel, or otherwise.

3.5.15 No Third Party Beneficiaries . There are no intended third party beneficiaries of any right or obligation assumed by the Parties.

3.5.16 Invalidity; Severability . If any portion of this Agreement is declared invalid, illegal, or otherwise u nenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect.

3.5.17 Prohibited Interests. Contractor maintains and warrants that it has not employed nor retained any company or person, other than a bona fid e employee working solely for Contractor , to solicit or secure this Agreement. Further, Contractor warrants that it has not paid nor has it agreed to pay any company or person, other than a bona fide employee working solely for Contractor, any fee, commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting from the award or making of this Agreement. For breach or violation of this warranty, City shall have the right to rescind this Agreement without liability. For the term of this Agreement, no member, officer or employee of City, during the term of his or her service with City, shall have any direct interest in this Agreement, or obtain any present or anticipated material benefit arising therefrom.

3.5.18 Equal Opportunity Employment. Contractor represents that it is an equal opportunity employer and it shall not discriminate against any subcontractor, employee or applicant for employment because of race, religion, color, national origin, handicap, ancestry, sex or age. S uch non- discrimination shall include, but not be limited to, all activities related to initial employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or termination. Contractor shall also 144
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8 comply with all relevant provisions of any minority business enterprise program, affirmative action plan or other related programs or guidelines currently in effect or hereinafter enacted.

3.5.19 Labor Certification. By its signature hereunder, Contractor certifies that it is aware of the provisions of Section 3700 of the California Labor Code which require every employer to be insured against liability for Workers’ Compensation or to undertake self -insurance in accordance with the provisions of that Code, and agrees to comply with such provis ions before commencing the performance of the Services.

3.5.20 Authority to Enter Agreement. Contractor has all requisite power and authority to conduct its business and to execute, deliver, and perform the Agreement. Each Party warrants that the individuals wh o have signed this Agreement have the legal power, right, and authority to make this Agreement and bind each respective Party.

3.5.21 Counterparts. This Agreement may be signed in counterparts, each of which shall constitute an original.

3.5.22 Employment Adverse to City. Contractor shall notify City, and shall obtain City’s written consent, prior to accepting work to assist with or participate in a third -party lawsuit or other legal or administrative proceeding against City during the term of this Agreement.

3.5.23 Conflict of Employment. Employment by Contractor of personnel currently on the payroll of City shall not be permitted in the performance of this Agreement, even though such employment may occur outside of the employee’s regular working hours or on weekends, holida ys or vacation time. Further, the employment by Contractor of personnel who have been on City’s payroll within one year prior to the date of execution of this Agreement, where this employment is caused by and or dependent upon Contractor securing this or related Agreements with City, is prohibited.

3.5.24 Survival. All rights and obligations hereunder that by their nature are to continue after any expiration or termination of this Agreement, including, but not limited to, the indemnification and confidentiality obligations, and the obligations related to receipt of subpoenas or court orders, shall survive any such expiration or termination.

3.5.25 Subcontracting. Contractor shall not subcontract any portion of the work required by this Agreement, except as expressly stated herein, without prior written approval of City. Subcontracts, if any, shall contain a provision making them subject to all provisions stipulated in this Agreement.

3.5.26 Wage Theft Prevention
(a) Contractor, and any subcontractor it employs to complete work under this Agreement, shall comply with all applicable federal, state and local wage and hour laws. Applicable laws may include, but are not limited to, the Federal Fair Labor Standards Act, the California Labor Code and the Milpitas Minimum Wage Ordinance.
(b) BY SIGNING THIS AGREEMENT, CONTRACTOR AFFIRMS THAT

IT HAS DISCLOSED ANY FINAL JUDGMENTS, DECISIONS OR ORDERS FROM A COURT OR INVESTIGATORY GOVERNMENT AGENCY, FINDING IN THE FIVE (5) YEARS PRIOR TO

EXECUTING THIS AGREEMENT THAT CONTRACTOR OR ITS SUBCONTRACT ORS HAS VIOLATED ANY APPLICABLE WAGE AND HOUR LAWS. CONTRACTOR FURTHER AFFIRMS

THAT IT OR ITS SUBCONTRACTOR(S) HAS EITHER FULLY SATISFIED EACH JUDGMENT,

DECISION OR ORDER, OR, IF ANY JUDGMENT, DECISION OR ORDER HAS NOT BEEN FULLY

SATISFIED, CONTRACTOR AFFIRMS THAT IT OR ITS SUBCONTRACTOR(S) IS CURRENTLY 145
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9 SATISFYING SAID JUDGMENT, DECISION OR ORDER THROUGH A PAYMENT OR

ALTERNATIVE PLAN APPROVED BY THE APPLICABLE COURT/GOVERNMENT AGENCY

AND THAT CONTRACTOR OR ITS SUBCONTRACTOR(S) ARE IN COMPLIANCE WITH SAID PLAN AS OF THE DATE OF EXECUTING THIS AGREEMENT.
(c) If at any time during the term of this Agreement, a court or investigatory government agency issues a final judgment, decision or order finding that Contractor or a subcontractor it employs to perform work u nder this Agreement has violated any applicable wage and hour law, or Contractor learns of such a judgment, decision, or order that was not previously disclosed in its bid/proposal, Contractor shall inform the City no more than fifteen (15) calendar days a fter the judgment, decision or order becomes final or from the date of learning of the final judgment, decision or order.

Contractor or its subcontractor(s) shall, within thirty (30) calendar days after notifying the City, either (i) fully satisfy any suc h judgment, decision, or order and provide the City with documentary evidence of satisfying said judgment, decision or order; or (ii) provide the City documentary evidence of a payment or other alternative plan approved by the court/government agency to satisfy the judgment, decision or order.

If the Contractor or its subcontractor is subject to a payment or other alternative plan, the Contractor or its subcontractor shall continue to submit documentary evidence every thirty (30) calendar days during the term of the Agreement demonstrating continued compliance with the plan until the judgment, decision or order has been fully satisfied.
(d) For purposes of this Section, a "final judgment, decision, or order" refers to one for which all appeals have been exhaust ed or the time period to appeal has expired. Relevant investigatory government agencies include: the United States Department of Labor, the California Division of Labor Standards Enforcement, the City, or any other governmental entity or division tasked wi th the investigation and enforcement of wage and hour laws.
(e) Failure to comply with any part of this Section constitutes a material breach of this Agreement. Such breach may serve as a basis for immediate termination of this Agreement and/or any other remedies available under this Agreement and/or law. (f) Notice provided to the City shall be addressed to: Attention: Finance Director, 455 E. Calaveras Blvd. Milpitas, CA 95035. The Notice provisions of this Section are separate from any other notice provisions in this Agreement and, accordingly, only notice provided to the above address satisfies the notice requirements in this Section. [Signatures on the following page]

SIGNATURE PAGE FOR AGREEMENT

FOR BELOW MARKET RATE PROGRAM ADMINISTRATION

BETWEEN THE CITY OF MILPITAS

AND HOUSEKEYS

IN WITNESS WHEREOF, the Parties have entered into this Agreement as of the date first written above.

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10 CITY OF MILPITAS
Approved By:

Ned Thomas, Acting City Manager

Date

Approved:

Lauren Lai, CPA, MPA
Finance Director/Risk Manager

Approved As To Form:

Michael Mutalipassi, City Attorney

HOUSEKEYS

Signature

Name

Title

Date

Approved As To Content:

Alex Andrade, Director of Economic Development
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11 EXHIBIT “A”

SCOPE OF SERVICES

Description of the Project:

This Scope of Services (“Scope”) details the roles and responsibilities that HouseKeys serves for its Clients. As a Third-Party Program Administrator (“Administrator”), HouseKeys is the Agency’s interface with industry practitioners and the public. This ecosystem not only includes Applicants (e.g., buyers) and Program Participants (e.g., owners) - it also includes, but is not limited to project owners, mortgage lenders, real estate agents, and escrow/title officers.

Service Breakdown

1. Documentation. Administrator will administer the program and assure Affordability Deed Restrictions are recorded and followed by all parties as applicable for each property.

2. Support and Education. Administrator will provide offsite support for service requests.

Orientations and workshops will be held for residents of the Agency. Note: In Response to COVID-19 restrictions, content is streamed online via webinars and pre-recorded content available on HouseKeys-hosted program websites.

a. Administrator shall conduct introductory Home Buyer Education/Training classes – Homebuyer Orientation Classes prior to Program application. A minimum of 6 events will be held each year and at least 30 Weeks of Weekly Frequently Asked Question (FAQ) sessions will be open to all program applicants and participants.

3. Guidelines and Materials. Administrator will regularly update program guidelines and program materials in conjunction with Agency staff to reflect the Administrator’s administrative process for Program Administration including, but not limited to: applications, program pamphlets, resale calculations, selection processes, sale and resale of units, refinancing requests, collection of Agency fees and other applicable fees, and default monitoring/resolution process. Administrator’s objective will be to work alongside Agency Staff to incorporate “learnings” from the team’s collective history with Affordability Programs in California.

4. Website Presence. Administrator will maintain an affordability program website presence that will link to the Agency’s housing website.

5. Recordkeeping. Administrator shall maintain the Agency’s existing records and files through a database-driven information retention and management system for the programs. All electronic records will be considered work products that are property of the Agency and will be available via data export. The Administrator shall update the Agency’s records quarterly to ensure a coordinated seamless record keeping process. The database shall include the following at a minimum:

a. For each ownership unit (new and existing):
i. The address for each ownership unit
ii. The level of affordability (e.g., Extremely Low, Very Low, Low, Moderate) iii. The current owner of record
iv. The expiration date of the owner agreement
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12 v. The last date of recertification
vi. The recertification status (updated annually)
vii. The original sales price
viii. The current resale restriction price
ix. Dates of owner turn-over, as applicable

6. Reporting. Administrator shall provide a quarterly program summary report to the Agency with the following information. An abbreviated monthly report will accommodate each monthly invoice.

a. For each owner unit (new and existing):
i. The address for each ownership unit
ii. The level of affordability (e.g., Very Low, Low, Moderate) iii. The current owner of record
iv. The last date of recertification and current recertification status b. Current list of defaults and pending defaults
c. Actions taken to date
d. Next steps, including dates

7. Services. Administrator will provide the following services:

a. Making minor revisions to the Agency’s existing program materials and legal documents.
b. Overall management and implementation of specific program policies, including required reporting.
c. Conducting income qualifications including review of assets, income, Verifications of Employment, and all other necessary approvals to ensure qualification for the Agency Programs (Ownership, Rental, Finance).
d. Underwriting program applications in accordance with program requirements. e. Underwriting program compliance in accordance to restrictive covenants and project- specific program agreements
f. Underwriting transaction compliance (e.g. refinances, transfers) to ensure they conform with restricted covenants and project-specific program agreements g. Preparing all program documents, overseeing proper execution thereof, and conducting final program approval reviews.
h. Ensuring timely delivery of all necessary documents into escrow, and preparing escrow demands and funding requests.
i. Preparation of program materials by revising the Agency’s current documents. j. Calculating all pay off demands and issuing any disclosures and tax forms as required by State and/or Federal Law.
k. Calculating the resale value of all ownership program homes as requested annually by the County.
l. Work with Agency Staff to ensure a seamless and coordinated development of documents as it relates to the Affordability Program.

Note 1: HouseKeys recommends that the Agency includes affordability requirements, the Administrator’s roles, and any fees related to affordable unit commitments in the conditions of approval to assure transparency at the earliest possible point in the entitlement process. HouseKeys charges Developers a 3% Fee up to a set cap (see Fee Schedule). This percentage is calculated using the sales price of the unit and is charged at the close of escrow when HouseKeys has an active contract with the Agency. 149
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13 8. Transaction Coordination. Administrator shall act as transaction coordinator for all real estate transactions and will provide the Agency with a Fee Schedule. Where there is a conflict between the Administrator’s Fee Schedule and recorded Agreements (“Legacy Agreements”), Administrator will adjust fees to compensate for the difference with the understanding that newly drafted agreements will conform to the fee schedule.

Note 1: In real estate industry terminology, a transaction “side” is defined as either working as an agent for the buyer or an agent for the seller; if the agent worked as both buyer’s agent and seller’s agent it would count as two transaction sides. New Construction Sales are considered a single- sided transaction where HouseKeys only represents the buyer pool. The Developer’s sales team would serve the Seller and use its State-Approved Sales contract to represent the terms and condition of sale. HouseKeys suggests that an applicant pool goal should be to have at least 7 applicants for every 1 unit for sale or rent.

Note 2: During the resale of an ownership unit, there are two sides of the transaction – 1) the first-time home seller and 2) the eventual buyer who is selected by Lottery or an alternate selection process. This two-sided transaction has a higher cost as reflected on the HouseKeys fee schedule. This accounts not only for the work involved (eligibility, legal timelines, property condition), but also accounts for the legal liability and risk.

Note 3: For an Acquisition, and Ownership Resale / Rehab Transaction Fee – this is the most complicated transaction. Not only does it involve 2 sides, but it also involves two escrows. There is an initial escrow to complete the initial purchase of the property and a second escrow to complete the sale to the new buyer.

During this time, HouseKeys serves as either an Agent to the Local Government Agency or as a Buyer.

For HouseKeys to serve as buyer, an Assignment of the Agency’s Option document must be signed and recorded. In cases where the Agency is purchasing the Unit, the Administrator will act as the Agency's agent. The Administrator will complete the acquisition transaction and then go on to manage the resale.

Note 4: Transaction fees charged to homeowners for refinance transactions are charged for the time taken to ensure that proposed transaction complies with restrictive covenants. This can include a refinance with a mortgage lender or other types of transfers as referenced in the recorded document (E.g., Divorce, Estates, Inheritance, etc.)

a. Administrator will coordinate document transmittals between buyers, borrowers, homeowners, developers, and Agency as needed. Administrator will be responsible for ensuring all documents submitted for Agency signatures are complete and accurate. Administrator will be responsible for making any necessary corrections to documents.

b. Administrator will coordinate the timelines, meetings, inspections, and document signings that need to take place on the buyer side and seller side of these transactions.

While the Asset Management team is focused on the transaction details, the Operations Team is managing the Applicant Pool, Lottery, and Selection Process.

Administrator will also work with an escrow officer familiar with selling properties with a recorded deed restriction to ensure proper handling of funds and documentation.

c. For Acquisition-Related transactions, Administrator will manage the holding period and maintain the property through to close of escrow. It is important to note that there may be situations where a legal matter arises related to the acquisition or resale.

Administrator has experience working with attorneys to settle matters involving 150
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14 owners that challenge the recorded agreement or who are out of compliance with program requirements. There are also cases involving foreclosure, probate, and bankruptcy where the Administrator has experience managing through the transaction timeline. There may be cases where legal fee reimbursements are involved, or special project fees are charged. These will be presented to the Agency before work begins. d. Administrator coordinates the timelines, meetings, inspections, and document signings that need to take place on the buyer side and seller side of these transactions. While the Asset Management team is focused on the transaction details, the Operations Team is managing the Applicant Pool, Lottery, and Selection Process.

9. Monitoring, Compliance, and Loss Mitigation. Administrator shall work alongside Agency Staff to conduct monitoring to annually evaluate Program Owners’ (“Counterparty’s”) compliance with the terms and conditions of the recorded deed restrictions and program guidelines including the following:

a. Mailing monitoring letters to all the Program units. b. Reviewing in conjunction with Agency Staff, Agency or County Assessor data to assist in the process (e.g., water utility bills, property records). c. Review Agency’s preliminary monitoring list to identify follow up actions required. d. Meet with Agency Staff to develop guidelines for acceptable default remedies (e.g., allowing rental of Program Units for hardship cases).

e. Administrator shall work alongside Agency Staff to investigate and identify and cure potential program-related defaults including:
i. Conduct follow up of those Program Owners (referred to as “Counterparties”) who do not submit their compliance documentation.
ii. Reviewing information on calls from Program Unit neighbors and interested parties.
iii. Conduct reasonable follow-up investigation to assess potential defaults including unit site visits.
iv. Scheduled appointments with Counterparties to discuss compliance issues. f. For confirmed defaults, provide Counterparties with list of actions needed to remedy the default and conduct follow-up to monitoring compliance. i. Maintaining log of actions taken to remedy the defaults. g. For those defaults in which the Counterparties choose not to remedy the situation within a reasonable amount of time, Administrator will meet with Agency Staff to determine the course of action to pursue. Agency authorization will be sought for any legal action taken.
h. Administrator will participate in legal deliberations at all Staff Levels and Council Decisionmakers as needed.
i. Agency will provide a list of any current program participant defaults and actions taken to date.

10. Marketing. HouseKeys’ marketing philosophy is driven by a network effect approach. Each agency that joins the HouseKeys client base adds value to the network. This improves the feedback loop used to improve services, name recognition, program participation, and can lead to economies of scale. The HouseKeys Team wants to deliver this value in aggregate, but also must target the Agency’s local residents and community members. This includes targeting the least likely to apply and working in compliance with federal laws addressing Affirmative Fair Housing Marketing, and will be done through some or all of the following actions…

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15 a. All Materials will include proper fair housing logo and other federal and state- mandated disclosures
b. Initial Campaign to Introduce HouseKeys to key employers, community organizations, religious organizations, trade associations, and small businesses c. Mailers and other collateral that go out within a .25 to .5-mile radius of each Opportunity listing featured in the MyHouseKeys Platform d. Local workshops targeting the groups above
e. Participating in local events as public health restrictions (e.g. COVID-19) allow f. Online and Social Media Campaigns to share available opportunities g. Listings on popular websites and real estate aggregators (E.g. Craigslist, etc.) h. When appropriate and when the budget allows, Administrator will advertise in local media (radio, print, etc.)

11. Performance Measures. Administrator and the Agency will agree to mutually acceptable performance measures for program administration. These measures shall be included in the quarterly program summary report.

a. General Inquiries: Respond within 72 business hours
b. Loan Requests: Respond within 72 business hours, Complete requests within reasonable time, with weekly status updates for outstanding requests c. Program Orientations/Workshops: Minimum 6 per year, with more as needed for new opportunities
d. Annual Ownership Monitoring: Send at least 2 rounds of annual certification letters to homeowners for compliance data collection
e. Eligibility List: Maintain a minimum buyer-to-property ratio of 5:1 f. Application ID issuance: Available online year-round 24/7 with troubleshooting issues handled within 2 business days. Manual Application ID issuance will also take up to 2 business days.

12. Additional Service Descriptions. Administrator will provide the following additional services.

a. Administrator shall build and maintain a group of qualified and eligible Program homebuyers at a minimum Buyer-to-Property ratio of 5:1. For Agencies that maintain an accruing Waitlist based on registration timestamp, HouseKeys will assign Application ID using the Timestamp and assign a “Legacy Applicant” Preference Assignment.
b. Administrator will maintain a list of approved loan officers and lending operations eligible to provide mortgage lending for purchase and refinance transactions c. Administrator will maintain a list of approved real estate agents and brokers eligible to provide listing services to sellers for resale transactions* d. Administrator will maintain a list of appraisers for fair market valuations* e. Administrator will maintain a list of escrow officers who are familiar with program requirements and transaction compliance*
f. Administrator will review individual program restrictions for terms and requirements as needed including shared equity programs, down payment assistance loans and any resale restriction agreements.
g. Administrator will assist Agency staff with reports and presentations on the housing programs that HouseKeys administers.
h. Administrator will provide training, analysis, and suggested improvements to the Affordability Program.
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16 i. Special Projects. There will be cases where Administrator will be asked to complete a Project that is outside of the contract scope. If project scope and terms are defined in writing, Administrator will agree to complete project at a specified billing rate.

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17 EXHIBIT “B”

SCHEDULE OF SERVICES

Consultant will invoice City on a monthly cycle. Consultant will include with each invoice a detailed progress report that indicates the amount of budget spent on each task. Consultant will inform City regarding any out-of-scope work being performed by Consultant.

PROGRAM SETUP

First 90 - 120 Days will involve getting the City
of Milpitas Setup with the HouseKeys Templates
and Operating System in prep to start fielding
applicant inquiries and complete program
transactions. In addition to the Program Setup, we
will also use this time to confirm policies in the
program manual and reporting protocols.
$50,000
One-Time Fee to Start Contract
 Includes setting City up in the
MyHouseKeys.Com Program
Marketplace
 Payment, in full, is due upon contract
approval and execution (signing by
both parties)

PROGRAM ADMINISTRATION

While HouseKeys will provide the full-service
scope of work from the date of start, the
expectation will be that the City will budget for a
full contract at this proposed annual fee,
 First installment is due on the 10th of
the first full month following the
execution of the contract, with
subsequent payments due on the 10th
of each month, or next business day, if
the 10th is on a weekend day or holiday

Transaction Fees
Each City pays an all-inclusive Base Fee that is meant to create predictable billing cycles for our Agency clients. In addition to the Base Fee, Transaction Fees are charged in accordance with an annual Fee Schedule. Please note that Transaction Fees are charged to third pa rties at the point-of-service (e.g., New Construction Fees are charged to the Developer for delivering an eligible buyer and as part of their contribution to ongoing compliance costs, Resale Fees are charged to the homeowner or added to the Re - Sale Price o f the Home). HouseKeys uses these fees to cover marketing costs and to compensate third parties for services performed, including HUD - Approved Counseling Agencies and outside Real Estate Agents.

Onboarding
In addition to the base cost and fee schedule, there is an Onboarding Process that can take between 30 days and 6 months. Onboarding costs and timelines depend on Agency -specific Scope of Work, the Agency’s current recordkeeping standards, and team capacity. While HouseKeys does its best to accurately price its contracts, experience has shown that it takes 12 to 18 months of working as the Agency’s Administrator to truly understand and calculate cost and scope. HouseKeys aims to work with Agencies who value standardization and who are willing to defer to HouseKeys best practices when it comes to program administration workflows, policies, and procedures. Two important check-ins during the first contract year will be the 6 - month check -in and the 12 -month check -in. During both exercises, the Agency and Administrator will be expected to evaluate costs and challenges to determine if a budget amendment is appropriate. The Agency will be expected to account for a possible increase in costs during the planning phase.

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18 EXHIBIT “C”

COMPENSATION

The initial term of this Agreement shall be from July 1, 2023 to June 30, 2024. The term shall include four (4) one-year options that could extend the contract through June 30, 2028. Each year’s extension is subject to City Council budget approval using the most current Contractor fee schedule. The following is a breakdown of the minimum compensation over the potential five years:

FY 23-24 $50,000 start-up fee;
$150,000 administration fee
FY 24-25 $200,000 administration fee
FY 25-26 $200,000 administration fee
FY 26-27 $200,000 administration fee
FY 27-28 $200,000 administration fee

The minimum $200,000 administration fee reflects administration of the City’s 278 BMR homeownership units. For each option year, City and Contractor agree to price any additional units added to the portfolio to the FY23-24 fee schedule, as displayed below. The addition of units will be agreed to by amendment to this agreement.

By March 31st of each year, City and Contractor will determine the subsequent year’s administrative fee based on the number of units in BMR portfolio and the fee schedule below.

Number of Units under
Management
Cost Per Unit
201-300 Units $900
>301 Units $750

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19 EXHIBIT “D”

INSURANCE REQUIREMENTS

Please refer to the insurance requirements listed below. Those that have an “X” indicated in the space before the requirement apply to Contractor’s or Consultant’s Agreement.

Contractor or Consultant shall procure and maintain for the duration of the Agreement insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder and the results of that work by the Contractor or Consultant, its agents, representatives, employees or subcontractors.

Contractor or Consultant shall provide its insurance broker(s)/agent(s) with a copy of these requirements and request that they provide Certificates of Insurance complete with copies of all required endorsements.

Contractor or Consultant shall furnish City with copies of original endorsements affecting coverage required by this Exhibit D. The endorsements are to be signed by a person authorized by that insurer to bind coverage on its behalf. All endorsements and certificates ar e to be received and approved by City before work commences. City has the right to require Contractor’s or Consultant’s insurer to provide complete, certified copies of all required insurance policies, including endorsements affecting the coverage required by these specifications.

Commercial General Liability (CGL):

___ Coverage at least as broad as Insurance Services Office (“ISO”) Form CG 00 01 covering CGL on an “occurrence” basis, including products and completed operations, property damage, bodily in jury and personal and advertising injury with limits no less than $2,000,000.00 per occurrence. If a general aggregate limit applies, either the general aggregate limit shall apply separately to this project/location or the general aggregate limit shall be twice the required occurrence limit.

_X_ Coverage at least as broad as ISO Form CG 00 01 covering CGL on an “occurrence” basis, including products and completed operations, property damage, bodily injury and personal and advertising injury with limits no less than $1,000,000.00 per occurrence. If a general aggregate limit applies, either the general aggregate limit shall apply separately to this project/location or the general aggregate limit shall be twice the required occurrence limit.

___ Coverage at least as broad as ISO Form CG 00 01 covering CGL on an “occurrence” basis, including products and completed operations, property damage, bodily injury and personal and advertising injury with limits no less than $5,000,000.00 per occurrence. If a general aggregate limit applies, either the general aggregate limit shall apply separately to this project/location or the general aggregate limit shall be twice the required occurrence limit.

Automobile Liability:

_X_ Coverage at least as broad as ISO Fo rm Number CA 0001 covering, Code 1 (any auto), of if Contractor or Consultant has no owned autos, Code 8 (hired) and 9 (non -owned), with limits no less than $1,000,000.00 combined single limit for bodily injury and property damage.

___ Coverage at least as broad as ISO Form Number CA 0001 covering, Code 1 (any auto), with limits no less than $5,000,000.00 combined single liit for bodily injury and property damage.

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20 ___ Garage keepers’ extra liability endorsement to extend coverage to all vehicles in the care, custody and control of the Contractor or Consultant, regardless of where the vehicles are kept or driven.

Professional Liability (Errors and Omissions):

___ Insurance appropriates to the Contractor or Consultant’s profession, with limit no less than $1,000,000.00 per occurrence or claim, $2,000,000.00 aggregate.

___ (If Design/Build), with limits no less than $1,000,000.00 per occurrence or claim, and $2,000,000.00 policy aggregate.

___ Insurance appropriates to the Contractor or Consultant’s profession, with limit no less than ______ per occurrence or claim, ______ aggregate

Workers’ Compensation Insurance:

_X_ Insurance as required by the State of California, with Statutory Limits, and Employer’s Liability Insurance with limit of no less than $1,000,000.00 per accident for bodily injury or disease. (Not required if Contractor or Consultant provides written verification it has no employees)

The Employer’s Liability policy shall be endorsed to waive any right of subrogation as respects the City, its elected and appointed officials, officers, attorneys, agents, and employees.

Builder’s Risk (Course of Construction):

___ Insurance utilizing an “All Risk” (Special Perils) coverage form, with limits equal to the completed value of the project and no coinsurance penalty provisions. If the project does not involve new or major reconstruction, at the option of the City, an Installation Floater may be acceptable. For such projects, a Property Installation Floater shall be obtained that provides for the improvement, remodel, modification, alteration, conversion or adjustment to existing buildings, structures, processes, machinery and equipment.

The Property Installation Floater shall provide property damage coverage for any building, structure, machinery or equipment damaged, impaired, broken, or destroyed during the performance of the Work, including during transit, installation, and testing at the City’s site.

Contractor’s or Consultant’s Pollution Legal Liability:

___ Contractor’s or Consultant’s pollution legal liability and/or Asbestos Legal Liability and/or Errors and Omissions (if project involves envir onmental hazards) with limits no less than $1,000,000.00 per occurrence or claim and $2,000,000.00 policy aggregate.

If the Contractor or Consultant maintains higher limits than the minimums shown above, the City requires and shall be entitled to covera ge for the higher limits maintained by the Contractor or Consultant. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to City.

Cyber Liability Insurance

___ Cyber Liability Insurance with limits not less than $1,000,000 per claim.

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21 Coverage shall be sufficiently broad to respond to the duties and obligations as is undertaken by Contractor or Consultant in this Agreement and shall include, but not be limited to, claims involving inf ringement of intellectual property, including but not limited to infringement of copyright, trademark, trade dress, invasion of privacy violations, information theft, damage to or destruction of electronic information, release of private information, alteration of electronic information, extortion, and network security.

The policy shall provide coverage for breach response costs as well as regulatory fines and penalties, and credit monitoring expenses with limits sufficient to respond to these obligations.

Surety Bonds:

Contractor shall provide the following Surety Bonds:

1. ____ Bid Bond

2. ____ Performance Bond

3. ____ Payment Bond

The Payment Bond and Performance Bond shall be in a sum equal to the contract price. Bonds shall be duly executed by a responsible corporate surety, authorized to issue such bonds in the State of California and secured through an authorized agent with an office in California.

Other Insurance Provisions:

The insurance policies are to contain, or be endorsed to contain the following provisions:

_X_ Additional Insured Status and Primary/Non-Contributory Language:

Contractor’s general liability and automobile liability policies shall be primary and shall not seek contribution from the City’s coverage and be endorsed to add the City and its elected and appointed officials, officers, attorneys, agents employees and volunteers as additional insureds under such policies using Insurance Services Office form CG 20 10 (or equivalent) on the general liability policy. For construction projects, an endorsement providing completed operations coverage for the additional insured on the general liability policy, ISO form CG 20 37 (or equivalent), is also required.

The limits of insurance required in this Agreement may be satisfied by a c ombination of primary and umbrella or excess insurance. Any umbrella or excess insurance shall contain or be endorsed to contain a provision that such coverage shall also apply on a primary and non -contributory basis for the benefit of City (if agreed to in a written contract or agreement) before the City’s own insurance or self-insurance shall be called upon to protect it as a named insured.

___ Loss Payee Status – Builder’s Risk/Course of Construction Insurance (applicable to Construction Contracts only)

Contractor or Consultant may submit evidence of Builder’s Risk insurance in the form of Course of Construction coverage. Such coverage shall name the City as a loss payee as their interest may appear.

___ Notice of Cancellation, Suspension or Otherwise Voiding Policies:

Each insurance policy required above shall contain or be endorsed to contain that coverage shall not be suspended, voided, canceled or reduced in coverage or in limits except with thirty (30) days’ prior written notice by certified mail, return receipt requested to the City. 158
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22 _X_ Waiver of Subrogation:

Contractor or Consultant hereby grants to City a waiver of any right to subrogation which any insurer of said Contractor or Consultant may acquire against the City by virtue of the payment of any loss under such insurance. Contractor or Consultant agrees to obtain any endorsement that may be necessary to affect this waiver of subrogation, but this provision applies regardless of whether or not the City has received a waiver of subrogation endorsement from the insurer. The Workers’ Compensation Policy shall be endorsed with a waiver of subrogation in favor of the City for all work performed by Contractor or Consultant, its employees, agents and subcontractors.

___ Completed Operations

For Construction Agreements, Contractor shall maintain insurance as required by this Agreement to the fullest amount allowed by law and shall maintain insurance for a minimum of five (5) years following the completion of this project. In the event Contractor fails to obtain or maintain completed operations coverage as required by this Agreement, the City at its sole discretion may purchase the coverage required and the cost will be paid by Contractor.

THE FOLLOWING PROVISIONS APPLY TO ALL AGREEMENTS

Deductibles and Self-Insured Retentions (“SIR”):

Any deductibles or self-insured retentions must be declared to and approved by City. The City may require the Contractor or Consultant to purchase coverage with a lower deductible or retention or provide proof of ability to pay losses and related investigations, claim administration, and defense expenses within the retention. At the option of the City, either (1) the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects t he City, its elected and appointed officials, officers, attorneys, agents, and employees; or (2) the Contractor or Consultant shall procure a bond guaranteeing payment of losses and related investigations, claim administration and defense expenses.

All SIRs must be disclosed to Risk Management for approval and shall not reduce the limits of liability.

Policies containing any SIR provision shall provide or be endorsed to provide that the SIR may be satisfied by either the named insured or the City.

City reserves the right to obtain a full-certified copy of any insurance policy and endorsements. Failure to exercise this right shall not constitute a waiver of right to exercise later.

Acceptability of Insurers:

Insurance is to be placed with insurers with a current A.M. Best’s rating of no less than A -:VII, unless otherwise acceptable to City.

Claims Made Policies: (note - should be applicable only to professional liability, see below)

1. The Retroactive Date mus t be shown and must be before the date of the contract or the beginning of contract work.

2. Insurance must be maintained, and evidence of insurance must be provided for at least five (5) years after completion of contract of work.
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23 3. If coverage is canceled or non-renewed, and not replaced with another claims-made policy form with a Retroactive Date prior to the contract effective date, the Contractor or Consultant must purchase “extended reporting” coverage for a minimum of five (5) years after completion of work.

4. A copy of the claims reporting requirements must be submitted to the City for review.

5. If the services involve lead -based paint or asbestos identification/remediation, the Contractor’s Pollution Liability Policy shall not con tain lead -based paint or asbestos exclusions. If the services involve mold identification/remediation, the Contractors Pollution Liability Policy shall not contain a mold exclusion, and the definition of Pollution shall include microbial matter, including mold.

Subcontractors:

Contractor or Consultant shall require and verify that all subcontractors maintain insurance meeting all the requirements stated herein, and Contractor shall ensure that City is an additional insured on insurance required from subcontractors.

Subcontractor agrees to be bound to Contractor and City in the same manner and to the same extent as Contractor is bound to City under this Agreement and any other contract documents. Subcontractor further agrees to include the same requirements and provisions of this Agreement, including the indemnity and insurance requirements, with any sub -subcontractor to the extent they apply to the scope of the sub - subcontractor’s work. A copy of the City indemnity and insurance provisions will be furnished to the subcontractor upon request.

Verification of Coverage:

Contractor or Consultant shall furnish the City with original certificates and amendatory endorsements or copies of the applicable policy language effecting coverage required by this clause. A ll certificates and endorsements are to be received and approved by the City before work commences. However, failure to obtain the required documents prior to the work beginning shall not waive the Contractor or Consultant’s obligation to provide them. The City reserves the right to require complete, certified copies of all required insurance policies, including endorsements required by these specifications, at any time.

Special Risks or Circumstances

City reserves the right to modify these requirements, including limits, based on the nature of the risk, prior experience, insurer, coverage or other special circumstances.

Failure to Comply:

Each insurance policy required above shall contain or be endorsed to contain that any failure to comply with reporting provisions of the policies shall not affect coverage provided to the City, its elected and appointed officials, officers, attorneys, agents, and employees.

Applicability of Coverage:

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24 Each insurance policy required above shall contain or be endorsed to contain that the Contractor’s or Consultant’s insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability. 161
Item # C11.

CITY OF MILPITAS

AGENDA REPORT
(AR)

Item Title: Adopt a Resolution Approving a Site Development Permit to Develop a New In- Ground Swimming Pool and Legalize the Unpermitted Site Improvements at an Existing Single-Family Residence at 640 Evans Road (Staff Contact: Jay Lee, Interim Planning Director, 408-586-3077)
Category: Consent Calendar-Community Development
Meeting Date: 9/5/2023
Recommendation: Consider the exemption in accordance with CEQA and adopt a resolution approving Site Development Permit No. SD20-0015, subject to the attached Conditions of Approval, to allow the development of a new in-ground swimming pool and legalize the unpermitted site improvements at an existing single-family residence on a 2.69 acre site at 640 Evans Road.

BACKGROUND:

On November 17, 2020, an application was submitted by Lisa Pendleton, of Artisan Home Resorts Inc. (“Applicant”), for a development proposal to allow the development of a new in-ground swimming pool, legalize the unpermitted patio, deck, and porch around the main residence comprised of pervious paver materials, 42 - inch tall rod iron fence, artificial grass, and 120-square foot storage shed (“Project”) on a 2.96 acre site with an existing single-family residence at 640 Evans Road (APN: 029-06-009). The Project site is zoned R1-H Single- family Residential-Hillside Zoning District. Per Milpitas Municipal Code (MMC) Section XI-10-45.09-2, no building permit shall be issued for the construction or expansion of a single-family structure in the Hillside (H) Combining District until such structure has received a site and architectural review approval by the Planning Commission (PC) and City Council (CC). On August 23, 2023, the application received a recommendation by the PC to be approved by CC, as demonstrated within Resolution No. 23-015.

ANALYSIS:

Planning staff recommends that the City Council review and approve a resolution to allow the development of a new in-ground swimming pool, legalize the unpermitted patio, deck, and porch around the main residence comprised of pervious paver materials, 42-inch tall rod iron fence, artificial grass, and 120-square foot storage shed at an existing single-family residence. The project site is located on the northeastern edge of the City of Milpitas, adjacent to properties with the same single-family hillside zoning designation. The proposed resolution involves the City Council making specific factual findings, including that the project as presented is consistent with the Milpitas Zoning Ordinance, the Hillside Zoning Ordinance, and the General Plan. As detailed in the draft resolution, staff has determined that the project is consistent with all relevant ordinances, plans, and standards except for the impervious surface standard for Hillside development. However, the project applicant will agree to make minor amendments to the project plans to bring the project into compliance with the impervious surfaces’ requirement, which will be a condition of approval for the permit.

Based on the existing location and minimal scale of the home in consideration of its maximum allowable size outlined in Table 3 of the attached staff report, developing a new in-ground pool and site improvements will not substantially interfere with views and privacy to adjacent lots. The existing residence exceeds all setback requirements, meets the maximum 17-foot, one-story height limit, and minimizes interference with views and privacy through substantial setbacks from adjacent residences to the north and south.

POLICY ALTERNATIVE(S):

Alternative 1: Direct staff to draft a resolution to deny the project for review at a subsequent meeting.

Pros: The existing hillside lot is developed with a single-family residence, or a new or revised project could be proposed.

Cons: The applicant would need to either withdraw the application or resubmit revised plans for the development of an in-ground swimming pool at this location. 162 Item # C12.

Reason for Not Recommending: The proposed project meets the required findings for approval and is consistent with the City’s goals of supporting the development of an in-ground swimming pool in all areas of the City, including appropriate hillside locations. Both staff and the Planning Commission are recommending approval of the proposed project.

FISCAL IMPACT:

If the proposed project is approved, the applicant will apply for building permits and pay associated fees. The new in-ground swimming pool and legalizing the unpermitted site improvements may increase the property value and tax revenues but will also increase the demand for City services, including public safety and utilities.

The project is located within an existing residential subdivision with existing services nearby.

California Environmental Quality Act (CEQA):

The proposed Project is categorically exempt from environmental review under the California Environmental Quality Act (CEQA) in accordance with CEQA Guidelines Section 15303 (New Construction or Conversion of Small Structures), as the scope of work includes a new in-ground swimming pool, patio, fence, deck, and associated earth work in a residential zone. As a separate and independent basis, the Project is also exempt from further environmental review pursuant to CEQA Guidelines Section 15183 (Projects Consistent with a Community Plan, General Plan or Zoning). The proposed Project is consistent with the established Milpitas 2040 General Plan and R1-H Single-Family Residential Hillside Zoning District.

RECOMMENDATION:

Consider the exemption in accordance with CEQA and adopt a resolution approving Site Development Permit No. SD20-0015, subject to the attached Conditions of Approval, to allow the development of a new in-ground swimming pool and legalize the unpermitted site improvements at an existing single-family residence on a 2.69 acre site at 640 Evans Road.

Attachments:

1. City Council Resolution

2. Planning Commission Staff Report dated August 23, 2023

3. Planning Commission Resolution No. 23-015

4. Project Plans

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Item # C12.

RESOLUTION NO. XXXX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MILPITAS APPROVING OF SITE DEVELOPMENT PERMIT NO. SD20-0015 TO DEVELOP A NEW IN-GROUND

SWIMMING POOL AND LEGALIZE THE UNPERMITTED SITE IMPROVEMENTS AT AN EXISTING SINGLE-FAMILY RESIDENCE ON 2.69-ACRE SITE AT 640 EVANS ROAD (APN: 029-06-009) AND

MAKING CEQA FINDINGS OF EXEMPTION

WHEREAS, on November 17, 2020, an application was submitted by Lisa Pendleton, of Artisan Home Resorts Inc. (“Applicant”), for a development proposal to allow the development of a new in -ground swimming pool, legalize the unpermitted patio, deck, and porch around the main residence comprised of pervious paver materials, 42-inch tall rod iron fence, artificial grass, and 120-square foot storage shed (“Project”) on a 2.96 acre site with an existing single -family residence at 640 Evans Road (APN: 029-06-009). The Pr oject site is zoned R1-H Single-family Residential-Hillside Zoning District; and WHEREAS, the Planning Division completed an environmental assessment for the Project in accordance with the California Environmental Quality Act (CEQA), which assessment determined that the Project is exempt from CEQA review pursuant to Section 15303 (New Construction and Conversion of Small Structures) of the CEQA Guidelines and, as a separate and independent basis, pursuant to Section 15183 of the CEQA Guidelines; and
WHEREAS, on August 23, 2023, the City of Milpitas Planning Commission held a duly-noticed public hearing on the subject application, at which time all those in attendance were given the opportunity to speak on the Project , and the Planning Commission unanimously (7-0) recommended approval of the Project to the City Council subject to Conditions of Approval per Planning Commission Resolution No. 23-015; and NOW THEREFORE, the City Council of the City of Milpitas hereby finds, determines and resolves as follows:

SECTION 1: Recitals
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 incorporated herein by reference.

SECTION 2: California Environmental Quality Act (CEQA) Findings The proposed Project is categorically exempt from environmental review under the California Environmental Quality Act (CEQA) in accordance with CEQA Guidelines Section 15303 (New Construction or Conversion of Small Structures), as the scope of work include s a new in -ground swimming pool, patio, fence, deck, and associated earth work in a residential zone. As a separate and independent basis, the Project is also exempt from further environmental review pursuant to CEQA Guidelines Section 15183 (Projects Consistent with a Community Plan, General Plan or Zoning). The proposed Project is consistent with the established Milpitas 2040 General Plan and R1-H Single-Family Residential Hillside Zoning District.

SECTION 3: Site Development Permit Findings (Section XI-10-57.03(F)(1)) The City Council makes the following findings based on the evidence in the public record in support of Site Development Permit No. SD20-0015:

1. The layout of the site and design of the proposed buildings, structures and landscaping are compatible and aesthetically harmonious with adjacent and surrounding development.

The existing home's architectural design and site planning are aesthetically compatible with the neighboring homes, emphasizing minimal changes to the natural topography and minimal visual impacts. The existing 164
Item # C12.

Resolution No. ____

2 home incorporates earth-tone colors and is sited so as not to draw attention when viewed from the valley floor.

2. The project is consistent with the Milpitas Zoning Ordinance.

As described in Table 1 below, the propo sed development of an in -ground pool and site improvements will be conditioned to conform to the R1 -H Single -Family Residential Hillside Zoning District standards for setbacks, height requirements, and landscaping.

Table 1:

Summary of Development Standards
Standards Hillside Requirements Proposed Complies
Front Setback
25 ft. minimum when avg.
slope is <16%; otherwise,
a 40 ft. minimum
(e) 74" Yes
Side Yard
Setback 40 ft. minimum (e) 43' - 2" (west side)
(e) 311’-10” (east side) Yes
Rear 40 ft. minimum (e) 58' - 6" Yes
Size of Main
Residence
6,000 sq. ft. maximum
(lots < 3 acres) (e) 3,360 sq. ft. Yes
Impervious
Surfaces
8,000 sq. ft. maximum
(lots < 3 acres)
30,000 sq. ft. maximum
(lots > 3 acres)
17,680 sq. ft. (1,379 square
feet over the allowed
Variance No. 503
Not as
presented.

This will
be
achieved
with
Condition
No. 24
Building Height
(Max.) West of crestline – 17 ft. (e) 1-story or 14’ – 10” Yes
Parking Three spaces required
Five spaces (two inside the
garage & three on the
driveway)
Yes
Crestline Zone
of Protection
Within three hundred
(300) feet easterly of the
crestline, structure heights
shall be restricted so that
no structure extends above
the crestline site line.
(e) West of the crestline Yes
(e) = Existing

Due to the subject property’s location, the project must also comply with the development standards in the City’s Hillside Combining District. Per MMC Section XI -10-45.09-7 of the Zoning Ordinance, the Planning 165
Item # C12.

Resolution No. ____

3 Commission and City Council shall consider th e following guidelines in their review. Staff has determined the Project to be consistent with the Hillside Architectural Guidelines, as demonstrated in Table 2 below.

Table 2:

Hillside Zoning Ordinance Compliance

Site and Architectural Guidelines
Section 45.09-7
Consistency Finding
(a) Avoid unreasonable interference with
Views and Privacy. The height, elevations
and placement on the site of the proposed
main or accessory structure, when
considered with reference to the nature and
location of residential structures on adjacent
lots, will avoid unreasonable interference
with views and privacy.

Consistent. Based on the existing location
and minimal scale of the home in
consideration of its maximum allowable size
outlined in Table 3, developing a new in-
ground pool and site improvements will not
substantially interfere with views and privacy
to adjacent lots. The existing residence
exceeds all setback requirements, meets the
maximum 17-foot, one-story height limit, and
minimizes interference with views and
privacy through substantial setbacks from
adjacent residences to the north and south.
(b) Preserve Natural Landscape. The
natural landscape will be preserved insofar
as practicable by designing structures to
follow the natural contours of the site and
minimizing tree and soil removal.

Consistent. The project site is developed
with a few shrubs on the higher-sloped
southern portions of the lot and existing trees.

The proposed project will not remove any
existing trees. As proposed, the design of the
in-ground pool is carefully sited to be built on
the flattest portions of the lot, following the
existing contours of the site to limit the
amount of imported soil.
(c) Minimize Perception of Excessive Bulk.

The design of the proposed main and /or
accessory structure(s) in relation to the
immediate neighborhood should minimize
the perception of excessive bulk.

Consistent. The existing one-story design is
predominantly horizontal and includes a
single roofline, a clear delineation of different
colors and materials, and punctuation of
certain front and side-facing elevations to
minimize the perception of bulk within the
main structure and the detached ADU.

Furthermore, as described above and shown in
Table 3, the scale of the proposed main
residence is similar to the immediate
neighbors’ residences built on similar lots of
less than 3.0-acres in size.
(d) Impairment of Light and Air. The
proposed main or accessory structure(s)
shall not unreasonably impair the light and
air of adjacent properties nor unreasonably
impair the ability of adjacent properties to
utilize solar energy.

Consistent. The existing home will not
exceed 17 feet in height as permitted for
homes west of the crestline and exceeds all
minimum setbacks as required by the Hillside
development standards. As such, the
proposed in-ground pool will not cause an
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4 Site and Architectural Guidelines
Section 45.09-7
Consistency Finding
impairment to the adjacent properties’ access
to light and air.
(e) Grading. All grading shall be kept to an
absolute minimum and shall comply with the
grading ordinance criteria.

Consistent. The siting of the main dwelling
on the existing lot is relatively flat; the new-
inground pool is limited to the export of 170
cubic yards off-site.

Site & Architectural Design
The project has an existing single-family residence with various exterior materials and finishes, a palette of earth- tone colors, and an asphalt shingled roof. The existing detached guest house, considered a limited detached ADU, was designed with the same materials to complement the main residence.

Grading and Landscaping
In an effort to limit the amount of ground to be removed, the applicant has proposed a site plan which locates the proposed in-ground pool on the flattest portion of the site, which wi ll result in 170 cubic yards of export for the construction of the pool. No existing trees will be removed.

Site Improvements without permits
The applicant also requests to legalize the unpermitted patio, deck, and porch around the main residence, comprised of pervious paver materials, a 42-inch tall rod iron fence, artificial grass, and a 120-square-foot storage shed. See Sheet ST2 of Attachment B for more details.

The fence deviation of construction materials from an all -wooden post and supporting framework materials to rod iron requires the Planning Commission's approval of this Site Development permit. Otherwise, the fence conforms to the he ight limit of 54 -inches and the required open work design, which results in a minimum of seventy-five percent (75%) visual transparency within every square foot area, posts excluded. See the existing fence detail on Sheet ST2 of Attachment B.

Crestline Zone of Protection
To protect the quality of views of the hills from the valley floor, development standards related to the crestline have been incorporated into the Zoning Code. Per MMC Section XI -10-45.06, the purpose of the crestline zone of protection is to preserve the natural quality of the crestline and the slopes 100 feet immediately below when viewed from the valley floor. The proposed project is located 500 feet west of the crestline and approximately 300 feet lower in elevation; the project is furth er restricted to a height of seventeen (17) feet and one (1) story (excluding basements) from the lowest finished grade to the highest ridgeline of the building. The project conforms to these development standards outlined in Table 1.

3. The project is consistent with the Milpitas General Plan.

The proposed project is consistent with the Milpitas General Plan, particularly with Policy CD 7 -5, which states that new development in the Hillside Area should be limited to only Very Low Density Residential, open space, and park uses. The project site is a legal lot within an existing and approved single-family residence. The proposed in-ground swimming pool, the unpermitted patio, deck, and porch around the main residence comprised of pervious paver materials, 42-inch tall rod iron fence, artificial grass, and 120-square foot storage shed are designed to fit in with the natural topographic features of the hillside property and reduce the visual impact as viewed from the valley floor. As outlined in Table 3 below.
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5 Table 3:

General Plan Consistency

Policy Conformance
CD 7 -1 Maintain the visual character of
hillsides, recognizing both the importance
of the exposure of hillside development from
off-site public views and the importance of
providing panoramic public views from and
of hillsides.

Consistent. The proposed in -ground pool will
not significantly impact the visual character of the
hillside from the valley floor or other viewpoints,
as the project site is located over 500 feet west
and approximately 300 feet lower than the
crestline.

CD 7-2 Minimize the alteration of existing
landforms and maintain the natural
topographic characteristics of the hillside
areas, allowing only minimal disruption.

Consistent. The proposed in-ground pool will be
situated at the flattest portion of the lot to limit the disruption to the existing natural topography by
limiting the volume of grading only to require a
net export of 170 cubic yards to be removed from
the site. This is designed to accommodate the
footprint of the pool and meet the required grade
at the patio.

CD 7-3 Protect the natural character of
hillside areas by means of contour grading
to blend graded slopes and terraces with
the natural topography.

Consistent. Minimal contour grading will be
required to construct the in-ground pool due to its
location on the flattest areas of the lot, a plateau
adjacent to the residence. All new contours will
be designed to blend with the natural existing site
contours as demonstrated in the civil drawings in
the plan set.

CD 7-4 Avoid mass graded pads within
hillside areas. Smaller steps or grade
changes should be used over single, large,
slope banks to the greatest extent feasible.

Consistent. The in-ground pool is proposed at
the flattest portion of the lot and will only
necessitate minimal grading requiring a net
export of 170 cubic yards to be removed from the
site. Grading has been substantially minimized in
the Project because the work follows the site's
natural contours to preserve the natural terrain
quality.

CD 7-5 Ensure that any change in hillside
land use is accompanied by appropriate
safety measures and that the environmental
constraints are adequately addressed
especially with respect to runoff and
erosion.

Consistent. No change in land use is proposed;
the site will remain a developed single -family
residence, with adequate fire safety measures to
allow fire apparatus access. The existing deck,
Astroturf, and patio are designed to be pervious
to inhibit excess runoff and erosion.

As described above, the Project is compatible and consistent with the surrounding uses and has been found to conform to the intent of the Milpitas 2040 General Plan designation. The in -ground pool is designed to fit in with the natural topographic features of the property and reduces t he visual impact as viewed from the valley floor.
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Resolution No. ____

6 SECTION 4: City Council Approval

Based on the foregoing, the City Council hereby approves Site Development Permit No. SD20-0015 to allow the construction of a new single-family residence in the R1-H Single-family Residential Zoning District with an H Hillside Combining District located at 640 Evans Road, based on the above findings and subject to the Conditions of Approval attached hereto as Exhibit 1 and incorporated herein.

PASSED AND ADOPTED this _____ day of___________, 2023, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

ATTEST: APPROVED:

Suzanne Guzzetta, Acting City Clerk Carmen Montano, Mayor

APPROVED AS TO FORM:

Michael Mutalipassi, City Attorney

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Resolution No. ____

7 EXHIBIT 1

SITE DEVELOPMENT PERMIT NO. P-SD20-0015
640 EVANS ROAD (APN 029-06-009)

The City of Milpitas Planning Commission and City Council approve Site Development Permit No. SD20-0015 in accordance with Section X1-10-45.09 of the Milpitas Municipal Code, subject to and conditioned upon all applicable State and local laws and regulations and the Conditions of Approval outlined below. This permit is to allow the issuance of building permits for a new in ground swimming pool and previously constructed patio, deck, and porch, 42-inch tall rod iron fence, artificial grass, and 120-square foot storage shed appurtenant to an existing single-family residence on a 2.96-acre site located in the R1-H Single-family Residential-Hillside Zoning District at 640 Evans Road (APN 029-06-009), subject to all necessary reviews, approvals, studies, and inspections for the issuance of such building permits.

APPROVED SUBJECT TO THE FOLLOWING CONDITIONS:

General Conditions

1. General Compliance. The applicant and owner, including all successors in interest (collectively “Permittee”) shall comply with each and every condition set forth in this Permit. Site Development Permit No . SD20- 0015 (“Permit”) shall have no force or effect and no building permit shall be issued unless and until all things required by the below-enumerated precedent conditions have been performed or caused to be performed and this Resolution has been recorded by the Permittee with the Santa Clara County’s Recorder Office. (P)

2. Modifications to project. Any deviation from the approved site plan, floor plans, or other approved submittal shall require that, prior to the issuance of building permits, the Permittee shall submit modified plans and any other applicable materials as required by the City for review and obtain the approval of the Planning Director or designee. If the Planning Director or designee determines that the deviation is significant, the Permittee shall be required to apply for review and obtain approval of the Planning Commission, in accordance with the Zoning Ordinance. (P)

3. Effective Date. Unless there is a timely appeal filed in accordance with the Milpitas Zoning Code, the date of approval of this Permit is the date on which the decision-making body approved this Permit. (P)

4. Acceptance of Permit. Should Permittee fail to file a timely appeal within twelve (12) calendar days of the date of approval of this Permit, inaction by Permittee shall be deemed to constitute each of the following:
a. Acceptance of this Permit by Permittee; and
b. Agreement by the Permittee to be bound by, comply with, and to do all things required of or by Permittee pursuant to all of the terms, obligations, and conditions of this Permit.

5. Permit Expiration. Pursuant to Section XI -10-64.06 of the Milpitas Zoning Code, this Permit shall become null and void if the activity permitted by this Permit is not commenced within two (2) years from the date of approval, or for a project submitted with a tentative map, within the time limits of the approved tentative map.

Pursuant to Section XI -10-64.06(B) of the Milpitas Zoning Code, an activity permitted by this Permit shall be deemed to have commenced when the project:

a. Completes a foundation associated with the project; or b. Dedicates any land or easement as required from the zoning action; or c. Complies with all legal requirements necessary to commence the use, or obtains an occupancy permit, whichever is sooner.

This permit shall become null an d void if the work is added to, modified, or otherwise deviated from in any significant way from the approved site plan, building plan, floor plans, or other approved submittal as determined by the Planning Director or designee.
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8 6. Time Extension. Pursuant t o Section XI-10-64.07 of the Milpitas Zoning Code, unless otherwise provided by State law, Permittee shall have the right to request a one-time extension of the Permit if the request is made in writing to the Planning Division prior to the expiration date of the approval. (P)

7. Project Job Account. If Permittee’s project job account is at any time delinquent or below the required deposit amount, City will not continue to review or process the application until Permittee’s private job account is paid in full and the required deposit has been made. Additionally, prior to the issuance of any building permit or occupancy permit, as applicable, Permittee shall pay in full the project account balance and establish a remaining balance of at least twenty-five percent (25%) of the required initial deposit. (P)

8. Notice. Pursuant to California Government Code Section 66020, any protest filed in court relating to the imposition of fees, dedication, reservations, or other exactions to be imposed on the development project shall be filed within ninety (90) days after the d ate of the adoption of this Resolution. This provision serves as notice from the local agency to the Permittee that the ninety (90) day period in which the applicant may file a protest has begun under California Government Code Section 66020(d)(1). (P)

9. Cost and Approval . Permittee shall fully complete and satisfy each and every condition set forth in this Resolution and any other condition applicable to the project to the sole satisfaction of the City. Additionally, Permittee shall be solely responsible and liable for the cost to satisfy each and every condition. Permittee shall pay all required fees and charges to City at the rate in effect at time of building permit issuance, or, the rate in effect when the fees and charges are due and paid in full t o City. There is no vesting of any fees or charges with the adoption of this Resolution. (P)

10. Conditions. Each and every condition set forth in this Exhibit shall apply to the project and continue to apply to the project so long as the Permittee is oper ating the project under the permits and approvals in this Resolution. (P)

11. Compliance with Laws . The construction, use, and all related activity authorized under this Permit shall comply with all applicable local, state, and federal laws, rules, regulatio ns, guidelines, requirements, and policies. (CA/P)

12. Previous Approvals. Permittee shall abide and continue to comply with all previous City approvals, permits, or requirements relating to the subject property, unless explicitly superseded or revised by this Permit. (P)

13. Indemnification. To the fullest extent permitted by law, Permittee shall indemnify, defend with counsel of the City’s choosing, and hold harmless City, its City Council, its boards and commissions, officials, officers, employees, and agents from and against any and all claims, demands, obligations, damages, actions, causes of action, suits, losses, judgments, fines, penalties, liabilities, costs and expenses (including without limitation, attorney's fees, disbursements and court costs) of every kind and nature whatsoever which may arise from or in any manner relate (directly or indirectly) to (i) City's approval of the project, including but not limited to, the approval of the discretionary permits, maps under the Subdivision Map Act, and/o r the City's related determinations or actions under the California Environmental Quality Act, and (ii) Permittee’s construction, operation, use, or related activity under this Permit. This indemnification shall include, but not be limited to, damages awa rded against the City, if any, costs of suit, attorneys' fees, and other expenses incurred in connection with such claim, action, causes of action, suit or proceeding whether incurred by applicant, City, and/or the parties initiating or bringing such proce eding. Permittee shall indemnify the City for all of City's costs, attorneys' fees, and damages which City incurs in enforcing the indemnification provisions set forth in this condition. Permittee shall pay to the City upon demand or, as applicable, to c ounsel of City’s choosing, any amount owed pursuant to the indemnification requirements prescribed in this condition. (CA)

14. Revocation, Suspension, Modification. This Permit may be suspended, revoked, or modified in accordance with Section XI-10-63.06 of the Milpitas Zoning Code. (P)

15. Severability. If any term, provision, or condition of this Permit is held to be illegal or unenforceable by the Court, such term, provision, or condition shall be severed and shall be inoperative, and the remainder of this Permit shall remain operative, binding, and fully enforceable. 171
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9 16. Permittee shall develop the approved project in conformance with the approved plans dated June 8, 2023 approved by the Planning Commission on August 23, 2023, in accordance with these Conditions of Approval. (P)
Any deviation from the approved site plan, elevations, materials, colors, landscape plan, or other approved submittal shall require that, prior to the issuance of building permits, the Permittee shall subm it modified plans and any other applicable materials as required by the City for review and obtain the approval of the Planning Director or Designee. If the Planning Director or designee determines that the deviation is significant, Permittee shall be required to apply for review and obtain approval of the Planning Commission or City Council, as applicable, in accordance with the Milpitas Zoning Code. (P)

17. Response to Conditions of Approval . The permittee shall provide a written response to comments upon submittal for building permit application. The responses should clearly indicate how each condition of approval has been addressed in the plans and shall note the appropriate plan sheet. (P)

18. Prior to the issuance of a building permit, the owner or designee s hall include, within the four first pages of the working drawings for a plan check, a list of all conditions of approval imposed by the final approval of the project. (P)

PROJECT SPECIFIC CONDITIONS
Planning Department Conditions

19. Streets shall be designed to generally follow the contours and land form in order to minimize cut and fill.

Exposed walls and facing roadways and retaining walls shall be no greater than six feet in height. Crib walls fencing roadways shall be no greater than 15 feet in height. (P)

20. Landscaping coverage and stabilization of graded slopes shall be selected and designed to be compatible with surrounding natural vegetation or to replace removed natural vegetation and should recognize climatic, soil, and ecol ogic characteristic of the region. Plan materials that require excessive water after becoming established should be avoided. (P)

21. Within six months, or such other period established by the Planning Commission, after the commencement of grading activities, all graded areas not covered by an impervious surface shall be stabilized in such manner as shall be approved by the Community Development Manager. (P)

22. Where two cut-or-fill slopes intersect, the intersection shall be horizontally rounded and blended. (P)

23. Where any cut-or-fill slopes intersect the natural grade, the intersection of each slope shall be vertically and/or horizontally rounded and blended. (P)

24. The total lot impervious surface shall not exceed 16,301 square feet as approved by Variance No. 503; at the Building Permit submittal, the site plans shall be revised to limit the total impervious surface to 16,301 square feet. (P)
Fire Department
The plans approved by the Planning Department process are not building plans and have not been reviewed nor approved for conformance to the California Building Code (CBC), California Fire Code (CFC) and the Milpitas Municipal Code (MMC). Do not consider this set of plans as final building plans approved by the Fire Department. Building plans must be submitted for review and approval before construction is to commence.

The following notes are a general list of the applicable code requirements (2016) and are provided to assist with the building permit process. Please note that these are not all inclusive. All applicable Building, Fire and Municipal Code requirements must be met in advance of any building permit approvals or related construction.

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10 25. Electronic documents. The fire code official may require electronic base documents for all construction documents and operational permits. The fire code official shall designate the software base format for the electronic documents. CFC Section 105.4.2.2, added by MMC Section V-300-2.11, and CFC Section 102.9

26. Fire Department access. Sheets ST2 shows an acceptable Fire Dept. apparatus access. Fire apparatus access roads shall be provided for every building hereafter constructed when any portion of an exterior wall of the first story is located more than 150 feet from fire apparatus access as measured by an approved route around the exterior of the building. Fire apparatus access shall meet the following:
a. Fire apparatus access shall extend to within 150 feet of all portions of exterior walls of the building/structure per the California Fire Code Section 503.1.

b. The proposed driveway shall be designed for fire apparatus access. Fire Access Dimensions, fire apparatus access roads shall have an unobstructed width of not less than 20 feet (6096 mm). CFC Section 503.2.1

Exception:

Milpitas Municipal Code XI-45.11

45.11-1 Privately owned and maintained access from the public road to each single-family dwelling shall be a minimum of fourteen (14) feet in width. Turning radius shall be designed to meet the Fire Department's requirements.

45.11-2 Turnout space shall be provided on driveways over one hundred fifty (150) feet in length with a maximum spacing of one hundred fifty (150) feet if driveway is less than eighteen (18) feet wide.

45.11-3 Turnaround. All dwelling units shall provide an on-site area for vehicles to turn around if served by a driveway over one hundred fifty (150) feet in length to meet Fire Department's requirements.

45.11-4 Vertical Clearance. All privately owned and maintained roads and drives shall assure a minimum fourteen (14) foot vertical clearance.

c. Fire apparatus access roads shall be designed and maintained to support the imposed loads of fire apparatus and shall be surfaced so as to provide all-weather capabilities. Bearing capacity for the driveway and the entry drive court shall be designed to provide a minimum of 60,000 lbs bearing capacity for the fire apparatus. CFC Section 503.2.3

d. When there is a dead-end condition, means for fire apparatus turn-around shall be provided as per the CA Fire Code Section 503.2.5. The Fire Department reserves the right to request site design changes as needed to meet the requirements of the CFC, and/or make the request for additional fire protection measures in conformance with the CFC Section 102.9.

e. The grade (maximum 15%) of the fire apparatus access road shall be within the limits established by the fire code official based on the fire department’s apparatus. CFC Section 503.2.7

f. Electric gates. Where provided, gates shall be listed in accordance with UL 325. Gates intended for automatic operation shall be designed, constructed and installed to comply with the requirements of ASTM F 2200. CA Fire Code Section 503.5

Electric gates shall also be provided with a Milpitas Fire Department approved “Knox” electronic switch in addition to the keypad. CA Fire Code Section 102.9

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11 Premises identification. New and exiting buildings shall have approved address numbers. Address numbers shall be illuminated and located where they are clearly visible from the street. CFC Section 505.

Building Department

27. Compliance with California Code of Regulations. The Project shall comply with the requirements of the Building Safety and Housing Department and the California Code of Regulations Title 24 and the Milpitas Municipal Code as adopted by the City. Building permits shall be submitted to and approved by the Building Safety and Housing Department prior to start of construction. All California Code of Regulations Title 24 and Milpitas Municipal Code requirements applicable at the time of building permit application must be met in advance of any building permit approvals or related construction. Changes to the site plan and/or building plan require review and approval by the Building Safety and Housing Department (B) (P) = Planning
(B) = Building
(E) = Engineering
(F) = Fire Prevention
(CA) = City Attorney

ACCEPTANCE

Permittee/Property Owner
The undersigned agrees to each and every condition of approval and acknowledges the NOTICE OF RIGHT TO PROTEST and hereby agrees to use the project property on the terms and conditions set forth in this permit.

NOTICE OF RIGHT TO PROTEST
The Conditions of Project Approval set forth herein include certain fees, dedication requirements, reservation requirements, and other exactions. Pursuant to Government Code Section 66020(d)(1), these Conditi ons constitute written notice of a statement of the amount of such fees, and a description of the dedications, reservations, and other exactions. You are hereby further notified that the 90 -day approval period in which you may protest these fees, dedicatio ns, reservations, and other exactions, pursuant to Government Code Section 66020(a), began on date of adoption of this resolution. If you fail to file a protest within this 90 -day period complying with all of the requirements of Section 66020, you will be legally barred from later challenging such exactions.

Signature: ___________________________________________________

Printed Name: _______________________________________________

Relationship to Property: _______________________________________

Date:_______________
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AGENDA IX-1

MILPITAS PLANNING COMMISSION

STAFF REPORT

August 23, 2023

APPLICATION: NEW IN-GROUND SWIMMING POOL AND LEGALIZING SITE IMPROVEMENTS - Site Development Permit No. SD20 -
0015: A request for a Site Development Permit to develop a new in- ground swimming pool, legalize the unpermitted patio, deck, and porch around the main residence comprised of pervious paver materials, 42-inch tall rod iron fence, artificial grass, and 120-square foot storage shed at an existing single -family residence on a 2.9 6- acre site located in the R1 -H Single -family Residential -Hillside Zoning District at 640 Evans Road.

RECOMMENDATION: Staff recommends that the Planni ng Commis sion adopt Resolution No. 23-013, recommending City Council approve Site Development Permit No. SD20-0015, subject to the attached Conditions of Approval.

LOCATION:

Address/APN: 640 Evans Road (APN: 029-06-009)
Area of City: Northeastern portion of the City of Milpitas in the hillside area

PEOPLE:

Project Applicant /Owner : Joe Custer
Project Planner: Avery Stark , Acting Senior Planner

LAND USE:

General Plan Designation: Hillside Low -Density (HLD) Zoning District: Single -Family Residential -Hillside (R1-H) Site Area: 2.90 acres

ENVIRONMENTAL: Categorically exempt from environmental review under the California Environmental Quality Act (CEQA) in accordance with CEQA Guidelines Section 15303 (New Construction or Conversion of Small Structures) and Section 15183 (Projects Consistent with a Community Plan, General Plan, or Zoning).

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Map 1
Aerial Project Location

Map 2
Zoning Map

Project Site
Project Site
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PROJECT DESCRIPTION
History
• On April 6, 1979, the Milpitas Planning Commission approved a one -story, single-family residence.
• On June 11, 1996, the Planning Commission approved Use Permit No. 1357, Variance No. 503, and an “S” Zone Approval Amendment to allow the development of a guest house and the addition of 1,020 square feet of impervious surface on a site which already exceeded the maximum impervious surface area allowed by 2,387. Allowing a total of 16,301 square feet of impervious surface.

Application
The applicant is requesting a Site Development Permit to develop a new in -ground swimming pool, legalize the unpermitted patio, deck, and porch around the main residence comprised of pervious paver materials, 42-inch tall rod iron fence, artificial grass, and 120-square foot storage shed at an existing single -family residence with an attached two -car garage. Separate from this application, pursuant to Milpitas Municipal Code (MMC) Section XI -10-13.08 - Accessory Dwelling Units, the existing one-story guest house with a kitchen area, living room, bedroom, and bathroom will be converted into a limited detached ADU, subject to a streamlined review and building permit only.

Context and Location
The project site is a developed 2.96-acre parcel located off Evans Road, in the northeastern portion of the City of Milpitas , in the hillside area approximately a quarter mile north of the Evans Rd/Quince Lane intersection. The project site is located on the east side of the crestline. A vicinity map of the subject site location is shown on Map 1. The site shares a portion of its access with two adjacent lots; each developed with single -family residences. The property and neighboring properties are zoned Single-Family Residential – Hillside (R1-H). Map 2 on the previous page and Table 1 on the following page summarize the Zoning and Land Uses surrounding the site.

Process
In addition to satisfying the substantive and procedural requirements typically applicable to a Site Development Permit, because of the project’s location within the Hillside Combining District (“H”), the application must be considered by both the Planning Commission and the City Council (Milpitas Municipal Code (MMC) Section XI -10-45.09) for conformance with the Hillside Site and Architectural Guidelines.

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Table 1
Surrounding Zoning and Land Uses

General Plan Zoning Existing Use
Subject Site Hillside Low
Density (HLD)
Single-Family Residential-
Hillside (R1-H) Single-family home
North Hillside Low
Density (HLD)
Single-Family Residential-
Hillside (R1-H) Single-family home
South Hillside Low
Density (HLD)
Single-Family Residential-
Hillside (R1-H) Single-family home
East Hillside Low
Density (HLD)
Single-Family Residential-
Hillside (R1-H) Single-family home
West Hillside Low
Density (HLD)
Single-Family Residential-
Hillside (R1-H) Single-family home

PROJECT ANALYSIS
Milpitas General Plan 2040
The General Plan designation for the project site is Hillside Low Density (HLD). The General Plan details the City's Hillside Area's goals, objectives , and policies. It is characterized by gentle to steep slopes, grassy terrain with some chaparral and trees, wildlife, geologically unstable areas, the Ed R. Levin County Regional Park, and a feeling of remoteness from the more urban portions of the city. The Hillside Low-Density designation allows a maximum of one (1) housing unit per gross acre. The project is in conformance with the policies and standards in the City’s General Plan policies, as outlined in the following table:

Table 2
General Plan Consistency

Policy Conformance
CD 7 -1 Maintain the visual character of
hillsides, recognizing both the importance
of the exposure of hillside development from
off-site public views and the importance of
providing panoramic public views from and
of hillsides.

Consistent. The proposed in-ground pool will
not significantly impact the visual character of the
hillside from the valley floor or other viewpoints,
as the project site is located over 500 feet west
and approximately 300 feet lower than the
crestline.

CD 7-2 Minimize the alteration of existing
landforms and maintain the natural
topographic characteristics of the hillside
areas, allowing only minimal disruption.

Consistent. The proposed in-ground pool will be
situated at the flattest portion of the lot to limit the disruption to the existing natural topography by
limiting the volume of grading only to require a
net export of 170 cubic yards to be removed from
the site. This is designed to accommodate the
footprint of the pool and meet the required grade
at the patio.
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Policy Conformance
CD 7-3 Protect the natural character of
hillside areas by means of contour grading
to blend graded slopes and terraces with
the natural topography.

Consistent. Minimal contour grading will be
required to construct the in-ground pool due to its
location on the flattest areas of the lot , a plateau
adjacent to the residence. All new contours will
be designed to blend with the natural existing site
contours as demonstrated in the civil drawings in
the plan set.

CD 7-4 Avoid mass graded pads within
hillside areas. Smaller steps or grade
changes should be used over single, large,
slope banks to the greatest extent feasible.

Consistent. The in-ground pool is proposed at
the flattest portion of the lot and will only
necessitate minimal grading requiring a net
export of 170 cubic yards to be removed from the
site. Grading has been substantially minimized in
the Project because the work follows the site's
natural contours to preserve the natural terrain
quality.

CD 7-5 Ensure that any change in hillside
land use is accompanied by appropriate
safety measures and that the environmental
constraints are adequately addressed
especially with respect to runoff and
erosion.

Consistent. No change in land use is proposed;
the site will remain a developed single -family
residence, with adequate fire safety measures to
allow f ire apparatus access . The existing deck,
Astroturf, and patio are designed to be pervious
to inhibit excess runoff and erosion.

Development Standards
The site is in the R1 -H Single -Family Residential - “H” - Hillside Combining District . It is designed to promote and encourage the orderly development of the hillside area of the City by the application of regulations and requirements established to meet the p articular constraints associated with the development of hillside areas, including, but not limited to, geologic problems, slope, safe access, and visibility.

Per MMC Section XI-10-45.17-3, the subject parcel is less than 3.0 -acres, which allows for the smallest maximum size for the main residence and the least amount of impervious surface coverage compared to parcels over this acre threshold. The project applicant will conform to development standards within its maximum limitations of the approved Variance . This is accomplished by a Condition of Approval that will limit impervious surface coverage to 16,301 square feet as set by Variance No. 503. Table 3 demonstrates the Project’s consistency with the applicable development standards of the R1 -H zone , with the exception of the total impervious surface coverage to be reminded by a condition of approval. Images 1 & 2 demonstrate the site plan and building configuration.

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Table 3
Summary of Development Standards

Standards Hillside Requirements Proposed Complies
Front Setback
25 ft. minimum when avg.
slope is <16%; otherwise,
a 40 ft. minimum
(e) 74" Yes
Side Yard
Setback 40 ft. minimum (e) 43' - 2" (west side)
(e) 311’-10” (east side) Yes
Rear 40 ft. minimum (e) 58' - 6" Yes
Size of Main
Residence
6,000 sq. ft. maximum
(lots < 3 acres) (e) 3,360 sq. ft. Yes
Impervious
Surfaces
8,000 sq. ft. maximum
(lots < 3 acres)
30,000 sq. ft. maximum
(lots > 3 acres)
17,680 sq. ft. (1,379 square
feet over the allowed
Variance No. 503)
Not as
presented.

This will
be
achieved
with
Condition
No. 24
Building Height
(Max.) West of crestline – 17 ft. (e) 1-story or 14’ – 10” Yes
Parking Three spaces required
Five spaces (two inside
garage & three on the
driveway)
Yes
Crestline Zone
of Protection
Within three hundred
(300) feet easterly of the
crestline, structure heights
shall be restricted so that
no structure extends above
the crestline site line.
(e) West of the crestline Yes
(e) = Existing

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The Planning Commission approved Variance No. 503 on August 14, 1996, to increase the maximum impervious surface lot coverage to 16,301 square feet. As proposed, the application and site configuration creates an increase of 1,379 square feet of impervious coverage, comprising of the new swimming pool, existing storage shed, an existing concrete pad, and a new asphalt radius area for emergency vehicle access. This increase over the limit of the Variance will be remedied by Condition Number 24 in the proposed Site Development Permit, which will prohibit the applicant from exceeding this limit and require the applicant to submit revised site plans that limit the total impervious surface area to 16,301 square feet. This could be accomplished by converting a portion of the existing asphalt driveway into pervious paves or by other uses of pervious materials or reductions in project components that have impervious surface area.

Image 1
Site Plan

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Image 2
Site Plan

Due to the subject property’s location, the project must also comply with the development standards in the City’s Hillside Combining District. Per MMC Section XI-10-45.09-7 of the Zoning Ordinance, t he Planning Commission and City Council shall consider the following guidelines in their review. Staff has determined the Project to be consistent with the Hillside Architectural Guidelines, as demonstrated in Table 4 below.

Table 4
Hillside Zoning Ordinance Compliance

Site and Architectural Guidelines
Section 45.09-7
Consistency Finding
(a) Avoid unreasonable interference with
Views and Privacy. The height, elevations
and placement on the site of the proposed
main or accessory structure, when
considered with reference to the nature and
location of residential structures on adjacent
lots, will avoid unreasonable interference
with views and privacy.

Consistent. Based on the existing location
and minimal scale of the home in
consideration of its maximum allowable size
outlined in Table 3, developing a new in-
ground pool and site improvements will not
substantially interfere with views and privacy
to adjacent lots. The existing residence
exceeds all setback requirements, meets the
maximum 17-foot, one-story height limit, and
minimizes interference with views and
privacy through substantial setbacks from
adjacent residences to the north and south.
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Site and Architectural Guidelines
Section 45.09-7
Consistency Finding
(b) Preserve Natural Landscape. The
natural landscape will be preserved insofar
as practicable by designing structures to
follow the natural contours of the site and
minimizing tree and soil removal.

Consistent. The project site is developed
with a few shrubs on the higher-sloped
southern portions of the lot and existing trees.

The proposed project will not remove any
existing trees. As proposed, the design of the
in-ground pool is carefully sited to be built on
the flattest portions of the lot, following the
existing contours of the site to limit the
amount of imported soil.
(c) Minimize Perception of Excessive Bulk.

The design of the proposed main and /or
accessory structure(s) in relation to the
immediate neighborhood should minimize
the perception of excessive bulk.

Consistent. The existing one-story design is
predominantly horizontal and includes a
single roofline, a clear delineation of different
colors and materials, and punctuation of
certain front and side-facing elevations to
minimize the perception of bulk within the
main structure and the detached ADU.

Furthermore, as described above and shown in
Table 3, the scale of the proposed main
residence is similar to the immediate
neighbors’ residences built on similar lots of
less than 3.0-acres in size.
(d) Impairment of Light and Air. The
proposed main or accessory structure(s)
shall not unreasonably impair the light and
air of adjacent properties nor unreasonably
impair the ability of adjacent properties to
utilize solar energy.

Consistent. The existing home will not
exceed 17 feet in height as permitted for
homes west of the crestline and exceeds all
minimum setbacks as required by the Hillside
development standards. As such, the
proposed in-ground pool will not cause an
impairment to the adjacent properties’ access
to light and air.
(e) Grading. All grading shall be kept to an
absolute minimum and shall comply with the
grading ordinance criteria.

Consistent. The siting of the main dwelling
on the existing lot is relatively flat; the new-
inground pool is limited to the export of 170
cubic yards off-site.

Site & Architectural Design
The project has an existing single-family residence with various exterior materials and finishes, a palette of earth -tone colors, and an asphalt shingled roof. The existing detached guest house, considered a limited detached ADU, was designed with the same materials to complement the main residence.

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Grading and Landscaping
In an effort to limit the amount of ground to be removed, the applicant has proposed a site plan which locates the proposed in-ground pool on the flattest porti on of the site, which will result in 170 cubic yards of export for the construction of the pool. No existing trees will be removed.

Site Improvements without permits
The applicant also requests to legalize the unpermitted patio, deck, and porch around the main residence, comprised of pervious paver materials, a 42-inch tall rod iron fence, artificial grass, and a 120-square-foot storage shed. See Image 2 above for the locations and Sheet ST2 of Attachment B for more details.

The fence deviation of construction materials from an all-wooden post and supporting framework materials to rod iron requires the Planning Commission's approval of this Site Development permit. Otherwise, the fence conforms to the height limit of 54-inches and the required open work design, which results in a minimum of seventy-five percent (75%) visual transparency within every square foot area, posts excluded. See the existing fence detail on Sheet ST2 of Attachment B.

Crestline Zone of Protection
To protect the quality of views of the hills from the valley floor, development standards related to the crestline have been incorporated into the Zoning C ode. Per MMC Section XI-10-45.06, the purpose of the crestline zone of protection is to preserve the natural quality of the crestline and the slopes 100 feet immediately below when viewed from the valley floor. The proposed project is located 500 feet west of the crestline and approximately 300 feet lower in elevation; the project is further restricted to a height of seventeen (17) feet and one (1) story (excluding basements) from the lowest finished grade to the highest ridgeline of the building. The project conforms to these development standards outlined in Table 3.

FINDINGS FOR APPROVAL (OR DENIAL)
A finding is a statement of fact relating to the information that the Planning Commission has considered in making a decision. Findings shall identify the rationale behind the decision to take a certain action. Based on substantial evidence in the public record, Staff has found that the proposed project is consistent with the General Plan, Zoning Ordinance, and all required Findings.

Site Development Permit Findings (Section XI-10-57-03-1(F))

1. The layout of the site and design of the proposed buildings, structures and landscaping are compatible and aesthetically harmonious with adjacent and surrounding development.

The existing home's architectural design and site planning are aesthetically compatible with the neighboring homes, emphasizing minimal changes to the natural topography and minimal visual impacts. The existing home incorporates earth-tone colors and is sited so as not to draw attention when viewed from the valley floor.

2. The project is consistent with the Milpitas Zoning Ordinance in that:

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As described within the staff report, the proposed development of an in-ground pool and site improvements will be conditioned to conform to the R1-H Single-Family Residential Hillside Zoning District standards for setbacks, height requirements, and landscaping.

3. The project is consistent with the Milpitas General Plan in that:

The proposed project is consistent with the Milpitas General Plan, particularly with Policy CD 7-5, which states that new development in the Hillside Area should be limited to only Very Low Density Residential, open space , and park uses. The project site is a legal lot with an approved single-family residence. The proposed home is designed to fit in wi th the natural topographic features of the hillside property and reduce the visual impact as viewed from the valley floor.

ENVIRONMENTAL REVIEW
The proposed Project is categorically exempt from environmental review under the California Environmental Quality Act (CEQA) in accordance with CEQA Guidelines Section 15303 (New Construction or Conversion of Small Structures) , as the scope of work includes a new in-ground swimming pool, patio, fence, deck, and associated earth work in a residential zone. As a separate and independent basis, the Project is also exempt from further environmental review pursuant to CEQA Guidelines Section 15183 (Projects Consistent with a Community Plan, General Plan or Zoning). The proposed Project is consistent with the established Milpitas 2040 General Plan and R1-H Single-Family Residential Hillside Zoning District.

PUBLIC COMMENT/OUTREACH
Staff provided public notice for the application in accordance with City and State public noticing requirements. At the time of writing this report, there have been no inquiries from the public. A notice was published in the Milpitas Post on August 11, 2023. In addition, 34 notices were sent to owners and occupants within 300 feet of the project site. A public notice was also posted on the project site, on the City’s Website, www.milpitas.gov, and posted at City Hall.

RECOMMENDATION
STAFF RECOMMENDS THAT the Planning Commission:

1. Open the Public Hearing to receive comments;

2. Close the Public Hearing; and

3. Adopt Resolution No. 23-015, approving and recommending the City Council approve Site Development Permit No. SD 20-015, to allow the development of a new in -ground swimming pool and legalize the unpermitted site improvements at an existing single - family residence in the R1-H Single -Family Residential Hillside Zoning D istrict, subject to the findings and attached Conditions of Approval.

ATTACHMENTS
A: Resolution 23-015
B: Project Plans
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RESO NO. 23-015

RESOLUTION NO. 23-015

A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF MILPITAS

APPROVING AND RECOMMENDING APPROVAL OF SITE DEVELOPMENT PERMIT NO. SD20-0015 TO THE MILPITAS CITY COUNCIL TO DEVELOP A NEW

IN-GROUND SWIMMING POOL AND LEGALIZE THE UNPERMITTED SITE IMPROVEMENTS AT AN EXISTING SINGLE-FAMILY RESIDENCE ON 2.69-ACRE SITE AT 640 EVANS ROAD (APN: 029-06-009)

WHEREAS, on November 17, 2020, an application was submitted by Lisa Pendleton, of Artisan Home Resorts Inc. (“Applicant”), for a development proposal to allow the development of a new in-ground swimming pool, legalize the unpermitted patio, deck, and porch around the main residence comprised of pervious paver materials, 42 -inch tall rod iron fence, artificial grass, an d 120-square foot storage shed (“Project”) on a 2.96 acre site with an existing single -family residence at 640 Evans Road (APN: 029-06-009). The Project site is zoned R1-H Single-family Residential-Hillside Zoning District; and
WHEREAS, the Planning Division completed an environmental assessment for the Project in accordance with the California Environmental Quality Act (CEQA), which assessment determined that the Project is exempt from CEQA review pursuant to Section 15303 (New Construction and Conversion of Small Structures) of the CEQA Guidelines and, as a separate and independent basis, pursuant to Section 15183 of the CEQA Guidelines; and WHEREAS, on August 23, 2023 the Planning Commission held a duly noticed public hearing on the subject application, at which all those in attendance were given the opportunity to speak on Project; and
WHEREAS, the Planning Commission has considered all of the written and oral testimony presented at the public hearing in making its decision; and NOW TH EREFORE, the Planning Commission of the City of Milpitas hereby finds, determines and resolves as follows:

SECTION 1: Recitals.

The Planning Commission 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 incorporated herein by reference.

SECTION 2: Record
The location and custodian of the documents or other material which constitute the record of proceedings upon which this decision is based is within the Planning Department, City of Milpitas, 455 East Calaveras Boulevard, Milpitas, California 95035

SECTION 3: CEQA Finding
The proposed Project is categorically exempt from environmental review under the California Environmental Quality Act (CEQA) in accordance with CEQA Guidelines Section 15303 (New Construction or Conversion of Small Structures), as the scope of work includes a new in-ground swimming pool, patio, fence, deck, and associated earth work in a residential zone. As DocuSign Envelope ID: 2D4D2F3C-5530-4A12-AAED-4CD8C893FB63 186
Item # C12.

RESO NO. 23-015

a separate and independent basis, the Project is also exempt from further environmental review pursuant to CEQA Guidelines Section 15183 (Projects Consistent with a Community Plan, General Plan or Zoning). The proposed Project is consistent with the established Milpitas 2040 General Plan and R1-H Single-Family Residential Hillside Zoning District.

SECTION 4: Site Development Permit (Section XI-10-57.03(F)(1))

The Planning Commission makes the following findings based on the evidence in the public record in approving Site Development Permit No. SD21-00105:

1. The layout of the site and design of the proposed buildings, structures and landscaping are compatible and aesthetically harmonious with adjacent and surrounding development.

The existing home's architectural design and site planning are aesthetically compatible with the neighboring homes, emphasizing minimal changes to the natural topography and minimal visual impacts. The existing home incorporates earth-tone colors and is sited so as not to draw attention when viewed from the valley floor.

2. The project is consistent with the Milpitas Zoning Ordinance.

As described in Table 1 below, the proposed development of an in -ground pool and site improvements will be conditioned to conform to the R1-H Single-Family Residential Hillside Zoning District standards for setbacks, height requirements, and landscaping.

Table 1:

Summary of Development Standards

Standards Hillside Requirements Proposed Complies
Front Setback
25 ft. minimum when avg.
slope is <16%; otherwise,
a 40 ft. minimum
(e) 74" Yes
Side Yard
Setback 40 ft. minimum (e) 43' - 2" (west side)
(e) 311’-10” (east side) Yes
Rear 40 ft. minimum (e) 58' - 6" Yes
Size of Main
Residence
6,000 sq. ft. maximum
(lots < 3 acres) (e) 3,360 sq. ft. Yes
Impervious
Surfaces
8,000 sq. ft. maximum
(lots < 3 acres)
30,000 sq. ft. maximum
(lots > 3 acres)
17,680 sq. ft. (1,379 square
feet over the allowed
Variance No. 503
Not as
presented.

This will
be
achieved
with
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RESO NO. 23-015

Standards Hillside Requirements Proposed Complies
Condition
No. 24
Building Height
(Max.) West of crestline – 17 ft. (e) 1-story or 14’ – 10” Yes
Parking Three spaces required
Five spaces (two inside the
garage & three on the
driveway)
Yes
Crestline Zone
of Protection
Within three hundred
(300) feet easterly of the
crestline, structure heights
shall be restricted so that
no structure extends above
the crestline site line.
(e) West of the crestline Yes
(e) = Existing

Due to the subject property’s location, the project must also comply with the development standards in the City’s Hillside Combining District. Per MMC Section XI -10-45.09-7 of the Zoning Ordinance, the Planning Commission and City Council shall consider the following guidelines in their review. Staff has determined the Project to be consistent with the Hillside Architectural Guidelines, as demonstrated in Table 2 below.

Table 2:

Hillside Zoning Ordinance Compliance

Site and Architectural Guidelines
Section 45.09-7
Consistency Finding
(a) Avoid unreasonable interference with
Views and Privacy. The height, elevations
and placement on the site of the proposed
main or accessory structure, when
considered with reference to the nature and
location of residential structures on adjacent
lots, will avoid unreasonable interference
with views and privacy.

Consistent. Based on the existing location
and minimal scale of the home in
consideration of its maximum allowable size
outlined in Table 3, developing a new in-
ground pool and site improvements will not
substantially interfere with views and privacy
to adjacent lots. The existing residence
exceeds all setback requirements, meets the
maximum 17-foot, one-story height limit, and
minimizes interference with views and
privacy through substantial setbacks from
adjacent residences to the north and south.
(b) Preserve Natural Landscape. The
natural landscape will be preserved insofar
Consistent. The project site is developed
with a few shrubs on the higher-sloped
DocuSign Envelope ID: 2D4D2F3C-5530-4A12-AAED-4CD8C893FB63 188
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RESO NO. 23-015

Site and Architectural Guidelines
Section 45.09-7
Consistency Finding
as practicable by designing structures to
follow the natural contours of the site and
minimizing tree and soil removal.
southern portions of the lot and existing trees.

The proposed project will not remove any
existing trees. As proposed, the design of the
in-ground pool is carefully sited to be built on
the flattest portions of the lot, following the
existing contours of the site to limit the
amount of imported soil.
(c) Minimize Perception of Excessive Bulk.

The design of the proposed main and /or
accessory structure(s) in relation to the
immediate neighborhood should minimize
the perception of excessive bulk.

Consistent. The existing one-story design is
predominantly horizontal and includes a
single roofline, a clear delineation of different
colors and materials, and punctuation of
certain front and side-facing elevations to
minimize the perception of bulk within the
main structure and the detached ADU.

Furthermore, as described above and shown in
Table 3, the scale of the proposed main
residence is similar to the immediate
neighbors’ residences built on similar lots of
less than 3.0-acres in size.
(d) Impairment of Light and Air. The
proposed main or accessory structure(s)
shall not unreasonably impair the light and
air of adjacent properties nor unreasonably
impair the ability of adjacent properties to
utilize solar energy.

Consistent. The existing home will not
exceed 17 feet in height as permitted for
homes west of the crestline and exceeds all
minimum setbacks as required by the Hillside
development standards. As such, the
proposed in-ground pool will not cause an
impairment to the adjacent properties’ access
to light and air.
(e) Grading. All grading shall be kept to an
absolute minimum and shall comply with the
grading ordinance criteria.

Consistent. The siting of the main dwelling
on the existing lot is relatively flat; the new-
inground pool is limited to the export of 170
cubic yards off-site.

Site & Architectural Design
The project has an existing single-family residence with various exterior materials and finishes, a palette of earth -tone colors, and an asphalt shingled roof. The existing detached guest house, considered a limited detached ADU, was designed with the same materials to complement the main residence.

DocuSign Envelope ID: 2D4D2F3C-5530-4A12-AAED-4CD8C893FB63 189
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RESO NO. 23-015

Grading and Landscaping
In an effort to limit the amount of ground to be removed, the applicant has proposed a site plan which locates the proposed in-ground pool on the flattest portion of the site, which will result in 170 cubic yards of export for the construction of the pool. No existing trees will be removed.

Site Improvements without permits
The applicant also requests to legalize the unpermitted patio, deck, and porch around the main residence, comprised of pervious paver materials, a 42-inch tall rod iron fence, artificial grass, and a 120-square-foot storage shed. See Sheet ST2 of Attachment B for more details.

The fence deviation of construction materials from an all-wooden post and supporting framework materials to rod iron requires the Planning Commission's approval of this Site Development permit. Otherwise, the fence conforms to the height limit of 54-inches and the required open work design, which results in a minimum of seventy-five percent (75%) visual transparency within every square foot area, posts excluded. See the existing fence detail on Sheet ST2 of Attachment B.

Crestline Zone of Protection
To protect the quality of views of the hills from the valley floor, development standards related to the crestline have been incorporated into the Zoning Code. Per MMC Section XI-10-45.06, the purpose of the crestline zone of protection is to preserve the natural quality of the crestline and the slopes 100 feet immediately below when viewed from the valley floor. The proposed project is located 500 feet west of the crestline and approximately 300 feet lower in elevation; the project is further restricted to a height of seventeen (17) feet and one (1) story (excluding basements) from the lowest finished grade to the highest ridgeline of the building. The project conforms t o these development standards outlined in Table 1.

3. The project is consistent with the Milpitas General Plan.

The proposed project is consistent with the Milpitas General Plan, particularly with Policy CD 7 - 5, which states that new development in the Hi llside Area should be limited to only Very Low Density Residential, open space, and park uses. The project site is a legal lot within an existing and approved single-family residence. The proposed in-ground swimming pool, the unpermitted patio, deck, and porch around the main residence comprised of pervious paver materials, 42 -inch tall rod iron fence, artificial grass, and 120-square foot storage shed are designed to fit in with the natural topographic features of the hillside property and reduce the visua l impact as viewed from the valley floor. As outlined in Table 3 below.

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RESO NO. 23-015

Table 3:

General Plan Consistency

Policy Conformance
CD 7 -1 Maintain the visual character of
hillsides, recognizing both the importance
of the exposure of hillside development from
off-site public views and the importance of
providing panoramic public views from and
of hillsides.

Consistent. The proposed in-ground pool will
not significantly impact the visual character of the
hillside from the valley floor or other viewpoints,
as the project site is located over 500 feet west
and approximately 300 feet lower than the
crestline.

CD 7-2 Minimize the alteration of existing
landforms and maintain the natural
topographic characteristics of the hillside
areas, allowing only minimal disruption.

Consistent. The proposed in-ground pool will be
situated at the flattest portion of the lot to limit the disruption to t he existing natural topography by
limiting the volume of grading only to require a
net export of 170 cubic yards to be removed from
the site. This is designed to accommodate the
footprint of the pool and meet the required grade
at the patio.

CD 7-3 Protect the natural character of
hillside areas by means of contour grading
to blend graded slopes and terraces with
the natural topography.

Consistent. Minimal contour grading will be
required to construct the in-ground pool due to its
location on the flattest areas of the lot, a plateau
adjacent to the residence. All new contours will
be designed to blend with the natural existing site
contours as demonstrated in the civil drawings in
the plan set.

CD 7-4 Avoid mass graded pads within
hillside areas. Smaller steps or grade
changes should be used over single, large,
slope banks to the greatest extent feasible.

Consistent. The in-ground pool is proposed at
the flattest portion of the lot and will only
necessitate minimal grading requiring a net
export of 170 cubic yards to be removed from the
site. Grading has been substantially minimized in
the Project because the work fo llows the site's
natural contours to preserve the natural terrain
quality.

CD 7-5 Ensure that any change in hillside
land use is accompanied by appropriate
safety measures and that the environmental
constraints are adequately addressed
especially with respect to runoff and
erosion.

Consistent. No change in land use is proposed;
the site will remain a developed single -family
residence, with adequate fire safety measures to
allow f ire apparatus access . The existing deck,
Astroturf, and patio are designed to be pervious
to inhibit excess runoff and erosion.

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RESO NO. 23-015

As described above, the Project is compatible and consistent with the surrounding uses and has been found to conform to the intent of the Milpitas 2040 General Plan designation. The in-ground pool is designed to fit in with the natural topographic features of the property and reduces the visual impact as viewed from the valley floor.

SECTION 5: The Planning Commission of the City of Milpitas hereby approves and recommends the City Council approve Site Development Permit No. SD20-0015 and adopt a resolution to allow the development of a new in -ground swimming pool and legalize the unpermitted site improvements at an existing single -family residence in the R1 -H Single-Family Residential Hillside Zoning District, based on the above findings and subject to the Conditions of Approval in the proposed Site Development Permit No. SD20-0015 attached hereto as Exhibit 1 incorporated herein.

PASSED AND ADOPTED at a regular meeting of the Planning Commission of the City of Milpitas on August 23, 2023.

Chair
TO WIT:

I HEREBY CERTIFY that the following resolution was duly adopted at a regular meeting of the Planning Commission of the City of Milpitas on August 23, 2023 , and carried by the following roll call vote:

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

X
X
X
X
X
X
X
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EXHIBIT 1

SITE DEVELOPMENT PERMIT NO. P-SD20-0015
640 EVANS ROAD (APN 029-06-009)

The City of Milpitas Planning Commission and City Council approve Site Development Permit No. SD20-0015 in accordance with Section X1-10-45.09 of the Milpitas Municipal Code, subject to and conditioned upon all applicable State and local laws and regulations and the Conditions of Approval outlined below. This permit is to allow the issuance of building permits for a new in ground swimming pool and previously constructed patio, deck, and porch, 42-inch tall rod iron fence, artificial grass, and 120-square foot storage shed appurtenant to an existing single-family residence on a 2.96-acre site located in the R1-H Single-family Residential-Hillside Zoning District at 640 Evans Road (APN 029-06-009), subject to all necessary reviews, approvals, studies, and inspections for the issuance of such building permits.

APPROVED SUBJECT TO THE FOLLOWING CONDITIONS:

General Conditions

1. General Compliance. The applicant and owner, including all successors in interest (collectively “Permittee”) shall comply with each and every condition set forth in this Permit. Site Development Permit No. SD20-0015 (“Permit”) shall have no force or effect and no building permit shall be issued unless and until all things required by the below -enumerated precedent conditions have been performed or caused to be performed and this Resolution has been recorded by the Permittee with the Santa Clara County’s Recorder Office. (P)

2. Modifications to project. Any deviation from the approved site plan, floor plans, or other approved submittal shall require that, prior to the issuance of building permits, the Permittee shall submit modified plans and any other applicable materials as required by the City for review and obtain the approval of the Planning Director or designee. If the Planning Director or designee determines that the deviation is significant, the Permittee shall be required to apply for review and obtain approval of the Planning Commission, in ac cordance with the Zoning Ordinance. (P)

3. Effective Date. Unless there is a timely appeal filed in accordance with the Milpitas Zoning Code, the date of approval of this Permit is the date on which the decision -making body approved this Permit. (P)

4. Acceptance of Permit. Should Permittee fail to file a timely appeal within twelve (12) calendar days of the date of approval of this Permit, inaction by Permittee shall be deemed to constitute each of the following:
a. Acceptance of this Permit by Permittee; and
b. Agreement by the Permittee to be bound by, comply with, and to do all things required of or by Permittee pursuant to all of the terms, obligations, and conditions of this Permit.

5. Permit Expiration. Pursuant to Section XI-10-64.06 of the Milpitas Zoning Code, this Permit shall become null and void if the activity permitted by this Permit is not commenced within two (2) years from the date of approval, or for a project submitted with a tentative map, within the time limits of the approved tentative map. Pur suant to Section XI -10-64.06(B) of the DocuSign Envelope ID: 2D4D2F3C-5530-4A12-AAED-4CD8C893FB63 193
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Milpitas Zoning Code, an activity permitted by this Permit shall be deemed to have commenced when the project:

a. Completes a foundation associated with the project; or b. Dedicates any land or easement as required from the zoning action; or c. Complies with all legal requirements necessary to commence the use, or obtains an occupancy permit, whichever is sooner.

This permit shall become null and void if the work is added to, modified, or otherwise deviated from in any significant way from the approved site plan, building plan, floor plans, or other approved submittal as determined by the Planning Director or designee.

6. Time Extension . Pursuant to Section XI -10-64.07 of the Milpitas Zoning Code, unless otherwise provided by State law, Permittee shall have the right to request a one-time extension of the Permit if the request is made in writing to the Planning Division prior to the expiration date of the approval. (P)

7. Project Job Account. If Permittee’s project job account is at any time delinquent or below the required deposit amount, City will not continue to review or process the application until Permittee’s private job account is paid in full and the required deposit has been made.

Additionally, prior to the issuance of any building permit or occupancy permit, as applicable, Permittee shall pay in full the project account balance and establish a remaining balance of at least twenty-five percent (25%) of the required initial deposit. (P)

8. Notice. Pursuant to California Government Code Section 66020, any protest filed in court relating to the imposition of fees, dedication, reservations, or other exactions to be imposed on the development project shall be filed within ninety (90) days after the date of the adoption of this Resolution. This provision serves as notice from the local agency to the Permittee that the ninety (90) day period in which the applicant may file a protest has begun under California Government Code Section 66020(d)(1). (P)

9. Cost and Approval . Permittee shall fully complete and satisfy each and every condition set forth in this Resolution and any other condition applicable to the project to the sole satisfaction of the City. Additionally, Permittee shall be solely responsible and liable for the cost to satisfy each and every condition. Permittee shall pay all required fees and charges to City at the rate in effect at time of building permit issuance, or, the rate in effect when the fees and charges are due and paid in full to City. There is no vesting of any fees or charges with the adoption of this Resolution. (P)

10. Conditions. Each and every condition set forth in this Exhibit shall apply to the project and continue to apply to the project so long as the Permit tee is operating the project under the permits and approvals in this Resolution. (P)

11. Compliance with Laws. The construction, use, and all related activity authorized under this Permit shall comply with all applicable local, state, and federal laws, rules , regulations, guidelines, requirements, and policies. (CA/P)

12. Previous Approvals . Permittee shall abide and continue to comply with all previous City approvals, permits, or requirements relating to the subject property, unless explicitly superseded or revised by this Permit. (P)
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13. Indemnification. To the fullest extent permitted by law, Permittee shall indemnify, defend with counsel of the City’s choosing, and hold harmless City, its City Council, its boards and commissions, officials, officers, employees, and agents from and against any and all claims, demands, obligations, damages, actions, causes of action, suits, losses, judgments, fines, penalties, liabilities, costs and expenses (including without limitation, attorney's fees, disbursements and court costs) of every kind and nature whatsoever which may arise from or in any manner relate (directly or indirectly) to (i) City's approval of the project, including but not limited to, the approval of the discretionary permits, maps under the Subdivision Map Act, and/or the City's related determinations or actions under the California Environmental Quality Act, and (ii) Permittee’s construction, operation, use, or related activity under this Permit. This indemnification shall include, but not be limited to, damages awarded against the City, if any, costs of suit, attorneys' fees, and other expenses incurred in connection with such claim, action, causes of action, suit or proceeding whether incurred by applicant, City, and/or the parties initiating or bringing such proceeding. Permittee shall indemnify the City for all of City's costs, at torneys' fees, and damages which City incurs in enforcing the indemnification provisions set forth in this condition. Permittee shall pay to the City upon demand or, as applicable, to counsel of City’s choosing, any amount owed pursuant to the indemnifica tion requirements prescribed in this condition. (CA)

14. Revocation, Suspension, Modification. This Permit may be suspended, revoked, or modified in accordance with Section XI-10-63.06 of the Milpitas Zoning Code. (P)

15. Severability. If any term, provision, o r condition of this Permit is held to be illegal or unenforceable by the Court, such term, provision, or condition shall be severed and shall be inoperative, and the remainder of this Permit shall remain operative, binding, and fully enforceable.

16. Permittee shall develop the approved project in conformance with the approved plans dated June 8, 2023 approved by the Planning Commission on August 23, 2023, in accordance with these Conditions of Approval. (P)
Any deviation from the approved site plan, elevation s, materials, colors, landscape plan, or other approved submittal shall require that, prior to the issuance of building permits, the Permittee shall submit modified plans and any other applicable materials as required by the City for review and obtain the approval of the Planning Director or Designee. If the Planning Director or designee determines that the deviation is significant, Permittee shall be required to apply for review and obtain approval of the Planning Commission or City Council, as applicable, in accordance with the Milpitas Zoning Code. (P)

17. Response to Conditions of Approval . The permittee shall provide a written response to comments upon submittal for building permit application. The responses should clearly indicate how each condition of approval has been addressed in the plans and shall note the appropriate plan sheet. (P)

18. Prior to the issuance of a building permit, the owner or designee shall include, within the four first pages of the working drawings for a plan check, a list of all conditions of approval imposed by the final approval of the project. (P)

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PROJECT SPECIFIC CONDITIONS
Planning Department Conditions

19. Streets shall be designed to generally follow the contours and land form in order to minimize cut and fill. Exposed walls and facing roadways and retaining walls shall be no greater than six feet in height. Crib walls fencing roadways shall be no greater than 15 feet in height. (P)

20. Landscaping coverage and stabilization of graded slopes shall be selected and designed to be compatible with surrounding natural vegetation or to replace removed natural vegetation and should recognize climatic, soil, and ecologic characteristic of the region. Plan materials that require excessive water after becoming established should be avoided. (P)

21. Within six months, or such other period established by the Planning Commission, after the commencement of grading activities, all graded areas not covered by an impervious surface shall be stabilized in such manner as shall be approved by the Community Development Manager. (P)

22. Where two cut -or-fill slopes intersect, the intersection shall be horizo ntally rounded and blended. (P)

23. Where any cut-or-fill slopes intersect the natural grade, the intersection of each slope shall be vertically and/or horizontally rounded and blended. (P)

24. The total lot impervious surface shall not exceed 16,301 square feet as approved by Variance No. 503; at the Building Permit submittal, the site plans shall be revised to limit the total impervious surface to 16,301 square feet. (P)
Fire Department
The plans approved by the Planning Department process are not building plans and have not been reviewed nor approved for conformance to the California Building Code (CBC), California Fire Code (CFC) and the Milpitas Municipal Code (MMC). Do not consider this set of plans as final building plans approved by the Fire Department. Building plans must be submitted for review and approval before construction is to commence. The following notes are a general list of the applicable code requirements (2016) and are provided to assist with the building permit process. Please note that these are not all inclusive. All applicable Building, Fire and Municipal Code requirements must be met in advance of any building permit approvals or related construction.

25. Electronic documents. The fire code official may require electronic base documents for all construction documents and operational permits. The fire code official shall designate the software base format for the electronic documents. CFC Section 105.4.2.2, added by MMC Section V-300-2.11, and CFC Section 102.9

26. Fire Department access. Sheets ST2 shows an acceptable Fire Dept. apparatus access. Fire apparatus access roads shall be provided for every building hereafter constructed when any portion of an exterior wall of the first story is located more than 150 feet from fire apparatus access as measured by an approved route around the exterior of the building. Fire apparatus access shall meet the following:

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a. Fire apparatus access shall extend to within 150 feet of all portions of exterior walls of the building/structure per the California Fire Code Section 503.1.

b. The proposed driveway shall be designed for fire apparatus access. Fire Access Dimensions, fire apparatus access roads shall have an unobstructed width of not less than 20 feet (6096 mm). CFC Section 503.2.1

Exception:

Milpitas Municipal Code XI-45.11

45.11-1 Privately owned and maintained access from the public road to each single- family dwelling shall be a minimum of fourteen (14) feet in width. Turning radius shall be designed to meet the Fire Department's requirements.

45.11-2 Turnout space shall be provided on driveways over one hundred fifty (150) feet in length with a maximum spacing of one hundred fifty (150) feet if driveway is less than eighteen (18) feet wide.

45.11-3 Turnaround. All dwelling units shall provide an on-site area for vehicles to turn around if served by a driveway over one hundred fifty (150) feet in length to meet Fire Department's requirements.

45.11-4 Vertical Clearance. All privately owned and maintained roads and drives shall assure a minimum fourteen (14) foot vertical clearance.

c. Fire apparatus access roads shall be designed and maintained to support the imposed loads of fire apparatus and shall be surfaced so as to provide all-weather capabilities.

Bearing capacity for the driveway and the entry drive court shall be designed to provide a minimum of 60,000 lbs bearing capacity for the fire apparatus. CFC Section 503.2.3

d. When there is a dead-end condition, means for fire apparatus turn-around shall be provided as per the CA Fire Code Section 503.2.5. The Fire Department reserves the right to request site design changes as needed to meet the requirements of the CFC, and/or make the request for additional fire protection measures in conformance with the CFC Section 102.9.

e. The grade (maximum 15%) of the fire apparatus access road shall be within the limits established by the fire code official based on the fire department’s apparatus. CFC Section 503.2.7

f. Electric gates. Where provided, gates shall be listed in accordance with UL 325. Gates intended for automatic operation shall be designed, constructed and installed to comply with the requirements of ASTM F 2200. CA Fire Code Section 503.5

Electric gates shall also be provided with a Milpitas Fire Department approved “Knox” electronic switch in addition to the keypad. CA Fire Code Section 102.9

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Premises identification. New and exiting buildings shall have approved address numbers.

Address numbers shall be illuminated and located where they are clearly visible from the street.

CFC Section 505.

Building Department

27. Compliance with California Code of Regulations. The Project shall comply with the requirements of the Building Safety and Housing Department and the California Code of Regulations Title 24 and the Milpitas Municipal Code as adopted by the City. Building permits shall be submitted to and approved by the Building Safety and Housing Department prior to start of construction. All California Code of Regulations Title 24 and Milpitas Municipal Code requirements applicable at the time of building permit application must be met in advance of any building permit approvals or related construction. Changes to the site plan and/or building plan require review and approval by the Building Safety and Housing Department (B) (P) = Planning
(B) = Building
(E) = Engineering
(F) = Fire Prevention
(CA) = City Attorney

ACCEPTANCE

Permittee/Property Owner
The undersigned agrees to each and every condition of approval and acknowledges the NOTICE OF RIGHT TO PROTEST and hereby agrees to use the project property on the terms and conditions set forth in this permit.

NOTICE OF RIGHT TO PROTEST
The Conditions of Project Approval set forth herein include certain fees, dedication requirements, reservation requirements, and other exactions. Pursuant to Government Code Section 66020(d)(1), these Conditions constitute written notice of a statement of the amount of such fees, and a description of the dedications, reservations, and other exactions. You are hereb y further notified that the 90-day approval period in which you may protest these fees, dedications, reservations, and other exactions, pursuant to Government Code Section 66020(a), began on date of adoption of this resolution. If you fail to file a protes t within this 90 -day period complying with all of the requirements of Section 66020, you will be legally barred from later challenging such exactions.

Signature: ___________________________________________________

Printed Name: _______________________________________________

Relationship to Property: _______________________________________

Date:_______________
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Certificate Of Completion
Envelope Id: 2D4D2F3C55304A12AAED4CD8C893FB63
Status: Completed
Subject: Complete with DocuSign: Attachment A Resolution 23-009 for DocuSign.pdf Source Envelope:

Document Pages: 13
Signatures: 1
Envelope Originator:

Certificate Pages: 5
Initials: 0
Liz Medina
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
August 24, 2023 | 18:25
Holder: Liz Medina
[email protected]
Location: DocuSign
Security Appliance Status: Connected
Pool: StateLocal
Storage Appliance Status: Connected
Pool: City of Milpitas
Location: DocuSign
Signer Events
Signature
Timestamp
Chair Bill Chuan
[email protected]
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(None)
Signature Adoption: Drawn on Device
Using IP Address: 67.188.2.13
Sent: August 24, 2023 | 18:27
Viewed: August 25, 2023 | 00:20
Signed: August 25, 2023 | 00:20
Electronic Record and Signature Disclosure:

Accepted: August 25, 2023 | 00:20
ID: b230d55a-f348-452f-a466-be7d2af2793f
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Avery Stark
[email protected]
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Sent: August 25, 2023 | 00:20
Viewed: August 25, 2023 | 07:27
Electronic Record and Signature Disclosure:

Accepted: September 7, 2022 | 11:04
ID: 0f1be86d-7131-481c-bc22-4ab9e5f4e036
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ELECTRONIC RECORD AND SIGNATURE DISCLOSURE
From time to time, Carahsoft OBO City of Milpitas (we, us or Company) may be required by law to provide to you certain written notices or disclosures. Described below are the terms and conditions for providing to you such notices and disclosures electronically through the DocuSign system. Please read the information below carefully and thoroughly, and if you can access this information electronically to your satisfaction and agree to this Electronic Record and Signature Disclosure (ERSD), please confirm your agreement by selecting the check-box next to ‘I agree to use electronic records and signatures’ before clicking ‘CONTINUE’ within the DocuSign system.

Getting paper copies
At any time, you may request from us a paper copy of any record provided or made available electronically to you by us. You will have the ability to download and print documents we send to you through the DocuSign system during and immediately after the signing session and, if you elect to create a DocuSign account, you may access the documents for a limited period of time (usually 30 days) after such documents are first sent to you. After such time, if you wish for us to send you paper copies of any such documents from our office to you, you will be charged a $0.00 per-page fee. You may request delivery of such paper copies from us by following the procedure described below.

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If you decide to receive notices and disclosures from us electronically, you may at any time change your mind and tell us that thereafter you want to receive required notices and disclosures only in paper format. How you must inform us of your decision to receive future notices and disclosure in paper format and withdraw your consent to receive notices and disclosures electronically is described below.

Consequences of changing your mind
If you elect to receive required notices and disclosures only in paper format, it will slow the speed at which we can complete certain steps in transactions with you and delivering services to you because we will need first to send the required notices or disclosures to you in paper format, and then wait until we receive back from you your acknowledgment of your receipt of such paper notices or disclosures. Further, you will no longer be able to use the DocuSign system to receive required notices and consents electronically from us or to sign electronically documents from us.

All notices and disclosures will be sent to you electronically Electronic Record and Signature Disclosure created on: January 13, 2020 | 13:50 Parties agreed to: Chair Bill Chuan, Avery Stark
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Unless you tell us otherwise in accordance with the procedures described herein, we will provide electronically to you through the DocuSign system all required notices, disclosures, authorizations, acknowledgements, and other documents that are required to be provided or made available to you during the course of our relationship with you. To reduce the chance of you inadvertently not receiving any notice or disclosure, we prefer to provide all of the required notices and disclosures to you by the same method and to the same address that you have given us. Thus, you can receive all the disclosures and notices electronically or in paper format through the paper mail delivery system. If you do not agree with this process, please let us know as described below. Please also see the paragraph immediately above that describes the consequences of your electing not to receive delivery of the notices and disclosures electronically from us.

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To withdraw your consent with Carahsoft OBO City of Milpitas To inform us that you no longer wish to receive future notices and disclosures in electronic format you may:
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i. decline to sign a document from within your signing session, and on the subsequent page, select the check-box indicating you wish to withdraw your consent, or you may; ii. send us an email to [email protected] and in the body of such request you must state your email, full name, mailing address, and telephone number. We do not need any other information from you to withdraw consent.. The consequences of your withdrawing consent for online documents will be that transactions may take a longer time to process..

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Acknowledging your access and consent to receive and sign documents electronically To confirm to us that you can access this information electronically, which will be similar to other electronic notices and disclosures that we will provide to you, please confirm that you have read this ERSD, and (i) that you are able to print on paper or electronically save this ERSD for your future reference and access; or (ii) that you are able to email this ERSD to an email address where you will be able to print on paper or save it for your future reference and access. Further, if you consent to receiving notices and disclosures exclusively in electronic format as described herein, then select the check-box next to ‘I agree to use electronic records and signatures’ before clicking ‘CONTINUE’ within the DocuSign system.

By selecting the check-box next to ‘I agree to use electronic records and signatures’, you confirm that:
 You can access and read this Electronic Record and Signature Disclosure; and  You can print on paper this Electronic Record and Signature Disclosure, or save or send this Electronic Record and Disclosure to a location where you can print it, for future reference and access; and
 Until or unless you notify Carahsoft OBO City of Milpitas as described above, you consent to receive exclusively through electronic means all notices, disclosures, authorizations, acknowledgements, and other documents that are required to be provided or made available to you by Carahsoft OBO City of Milpitas during the course of your relationship with Carahsoft OBO City of Milpitas.
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CITY OF MILPITAS

AGENDA REPORT
(AR)

Item Title: 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 Con dition Continues to Constitute an Emergency (Staff Contact: Christian Di Renzo, Public Works Director, 408-586-2602) Category: Consent Calendar-Community Services and Sustainable Infrastructure

Meeting Date: 9/5/2023
Recommendations: (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.

Background:

Pursuant to Public Contract Code section 22050 and the attached Council Resolution No. 9134, the Director of Public Works, in the case of emergency, may authorize a repair of a public facility and procure the work without giving notice for bids. An emergency is defined as “a sudden, unexpected occurrence that poses a clear and imminent danger, requiring immediate action to prevent or mitigate the loss or impairment of life, health, property, or essential public services.” Additionally, State law requires the Public Works Director, as the City official with delegated authority to take emergency action, to report any emergency authorization and the reason(s) for the authorization to the City Council not later th an seven days after the action, or at its next regularly scheduled meeting if that meeting will occur not later than 14 days after the action. Further, the Public Works Director is required to report why the emergency would not permit a delay resulting from a competitive solicitation for bids and the City Council is required to review the emergency action at every regularly scheduled meeting thereafter until the emergency repair is completed. The City Council shall continue to review the emergency action at every regularly scheduled meeting thereafter until the action is terminated. At each review, the City Council shall determine, by a four-fifths vote, whether there is a need to continue the action.

Consistent with applicable State law and Council Res olution, on April 27, 2023, the Public Works Director declared an emergency and authorized the City to contract with its existing HVAC maintenance contractor, Environmental Systems Inc. (ESI), for the emergency repairs to the HVAC system at City Hall and t he Public Works, Information Technology and Police Department buildings. The Information Memorandum issued on that date outlined the various equipment issues and provided a cost estimate of $ 899,300.

Analysis:

Below is a current update on the status of emergency repairs to the HVAC systems at City Hall and the Public Works, Information Technology and Police Department Buildings.

City Hall
The scope of work authorized repairs to the boiler, air handlers, and variable air volume (VAV) boxes to the City Hall building, and to date, there has been significant progress to these various items.

The contractor is still waiting for the delivery of the new boilers and pumps, which remains on-schedule with an estimated delivery of mid-September.

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Public Works/Information Technology/Police Department
At this facility, the Building Management System (BMS), boiler pumps and VAV boxes were identified as in need of emergency repairs.

The parts and materials for the boiler and chilled water pumps have been ordered and expected to arrive mid - September. Assessment of the VAV boxes was completed and additional repair work will be required that was not originally included in the emergency declaration. The additional work is estimated at $750,000 . Staff is developing a work plan to address the additional VAV box failures and BMS control repairs and anticipates soliciting bids this fall.

Fiscal Impact:

Funding for these repairs is available in the City’s Capital Improvement Program (CIP) budget and has been fully encumbered CIP Project 3499 - HVAC Systems Repairs funded $620,000 for the upgrades to the Building Management System (BMS) and Variable Air Flow (VAV) boxes at both buildings. The remaining repairs were funded by CIP Project 3406 – City Building Improvements in the amount of $279,300.

California Environmental Quality Act:

The emergency repair work is exempt from CEQA, per CEQA Guidelines Section 15301, Existing Facilities and 15302, Replacement or Reconstruction.

Recommendations:

1. Receive an update on the emergency repairs to the HVAC system and equipment for City Hall and the Public Works, Information Technology and Police Department buildings.

2. Determine by a four-fifths vote that the condition continues to constitute an emergency.

Attachment:

None
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CITY OF MILPITAS

AGENDA REPORT
(AR)

Item Title: Adopt a Resolution Approving the City Manager, Acting City Manager or Designee to apply for an up to $3,500,000 Community Resilience Center (CRC) Grant from the State of California Strategic Growth Council and Authorizing the City Manager, Acting City Manager or Designee to accept a CRC grant and execute all related documents as the Authorized Agent on the Grant Agreements (Staff Contact: Matt Cano, Deputy City Manager, 408-890-8065)
Category: Consent Calendar-Community Services and Sustainable Infrastructure Meeting Date: 9/5/2023
Recommendation: Adopt a resolution approving the City Manager, Acting City Manager or Designee to apply for an up to $3,500,000 Community Resilience Center Grant from the State of California Strategic Growth Council and Authorizing the City Manager, Acting City Manager or Designee to accept a CRC grant and execute all related documents as the Authorized Agent on the Grant Agreements.

BACKGROUND:

The 2021-2022 State of California Climate Budget Package, which totals over $15 billion to tackle wildfire and drought challenges, build more resilient communities, promote sustainable agriculture, and advance a nation- leading climate agenda, also allocated $100 million to the Strategic Growth Council (SGC) over two rounds for a new Community Resilience Centers (CRC) program. SGC’s program will fund planning, development, construction and upgrades of neighborhood-level Community Resilience Centers to provide shelter and resources during climate and other emergencies, such as extreme heat events and poor air quality days. The program will also fund ongoing year-round community services and programs, such as food distribution and workforce development training, that build overall community resilience. SGC received a $110 million State General Fund appropriation for Fiscal Year 2022-2023 to implement the program. Of the total funds, $98.6 million will be available Statewide for Round 1 grants.

ANALYSIS:

Of the $98.6 million available for grants, a total of $84 million will be available for implementation grants, ranging from $1 million to $10 million each. Implementation grants will fund new construction and upgrades of facilities to serve as Community Resilience Centers, as well as services and programs that build overall community resilience.

After a review of potential projects and programs, staff determined that renovations to the Milpitas Community Center (MCC) would be the most viable project to apply for. The MCC is the City’s center of community building and resilience. MCC shares its grounds with City Hall and the City’s Senior Center.

Through CRC Implementation Funding, the City would retrofit MCC with physical resilience improvements and offer year-round programming to help build social infrastructure. Together, these improvements will help increase climate resilience, expand economic opportunities, and reduce health, environmental, and social inequities. This multi-benefit community space will be especially important during times of climate hazard.

Built in 1982, the community center has a number of infrastructure needs. As part of the grant, staff is proposing to apply for up to $3,500,000 in funds for a roof replacement, unisex restroom (as required by the grant), community garden and emergency response supplies. At this time, staff intends to apply for an 212 Item # C14.

approximately $3,000,000 grant. However, staff is asking for approval to apply for up to $3,500,000 in case cost estimates increase prior to final grant submittal. Currently, the City has allocated $220,000 from CIP Project number 3406 to initiate the design of the roof replacement at the MCC. However, funding has not yet been appropriated for the full roof replacement. If the City receives this CRC implementation grant, the roof replacement will be able to proceed in a timely manner.

Per the CRC Grant Program process, a Resolution approving the filing of the application packet and signing appropriate agreements to accept the grant is required. The Resolution captures key points including but not limited to the approval of the application, certifies that the grantee has the funds to complete the applied for project, and identifies the staff designated as the authorized agent to execute grant agreements with the State of California.

POLICY ALTERNATIVE(S):

Alternative 1: Do not Adopt a Resolution Approving the Application for up to $3,500,000 Community Resilience Center grant funding from the State of California.

Pros: Staff will be able to work on already identified projects and work responsibilities as opposed to completing the grant over the next three weeks.

Cons: As there is no dedicated outside revenue for improvements to the MCC, any future roof replacement funds would likely be from the City’s General Fund. If the City is able to receive a grant for the roof replacement, General Fund dollars would not be diverted for this purpose, or the building would continue to deteriorate and not be able to be used to serve the community.

Reason for Not Recommending: Potential grant monies would allow the City to use critical General Fund dollars for other programs, projects or services.

FISCAL IMPACT:

There is no fiscal impact with the adoption of the Resolution. Should the grant be awarded to the City, staff will bring back to the City council a report to create the necessary budget appropriation. Sufficient funding for the initial design of this project is included as part of Project 3406 in the Adopted Capital Improvement Program.

California Environmental Quality Act (CEQA):

The City Council’s action in adopting this Resolution is exempt from environmental review pursuant to CEQA Guideline 15378(b)(4) as a governmental fiscal activity which does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment. Instead, if funding is provided, staff will look at the financial allocation and return to the City Council with a specific project or projects along with any required CEQA analysis prior to any discretionary action being taken.

RECOMMENDATION:

Adopt a resolution approving the City Manager, Acting City Manager or Designee to apply for an up to $3,500,000 Community Resilience Center Grant from the State of California Strategic Growth Council and Authorizing the City Manager, Acting City Manager or Designee to accept a CRC grant and execute all related documents as the Authorized Agent on the Grant Agreements.

Attachment(s):

1. Resolution

213
Item # C14.

RESOLUTION NO.

A RESOLUTION OF THE MILPITAS CITY COUNCIL APPROVING THE

APPLICATION, ACCEPTANCE AND AGREEMENT EXECUTION FOR THE

STRATEGIC GROWTH COUNCIL COMMUNITY RESILIENCE CENTER

GRANT FOR THE MILPITAS COMMUNITY CENTER

WHEREAS, the 2021-2022 State of California Climate Budget Package, which totals over $15 billion to tackle wildfire and drought challenges, build more resilient communities, promote sustainable agriculture, and advance a nation-leading climate agenda, also allocated $100 million to the Strategic Growth Council (SGC) over two rounds for a new Community Resilience Centers (CRC) program; and

WHEREAS, SGC’s program will fund planning, development, construction and upgrades of neighborhood-level Community Resilience Centers to provide shelter and resources during climate and other emergencies, such as extreme heat events and poor air quality days; and

WHEREAS, the applicant certifies by resolution the approval of the application prior to submission of the application to the State.

WHEREAS, the Milpitas Community Center shares a campus with City Hall and the Barbara Lee Senior Center. It is at the heart of the Milpitas community, and the City intends to use the Community Center as a Community Resilience Center for the next 15 years and beyond.

NOW, THEREFORE, BE IT RESOLVED that the Milpitas City Council hereby:

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 approves the filing of an application for Community Resilience Center grant program for the Milpitas Community Center;

3. The City Council approves the acceptance of the grant, if awarded, and the execution of all related documents to finalize the grant agreement.

4. The City Council certifies that the applicant has reviewed, understands, and agrees to the General Provisions contained in the Community Resilience Centers Program Round 1 Final Program Guidelines;

5. The City Council agrees to comply with all applicable federal, state and local laws, ordinances, rules, regulations and guidelines.

6. The City Council delegates the authority to execute all grant related documents to the City Manager as agent of the applicant. The City Council further delegates to the City Manager the authority to conduct all negotiations and execute and submit all documents, including, 214
Item # C14.

2 Resolution No.
but not limited to, applications, contracts, amendments, payment requests, and compliance with all applicable current state and federal laws which may be necessary for the completion of the aforementioned project.

PASSED AND ADOPTED on this the 5th day of September, 2023 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

215
Item # C14.

CITY OF MILPITAS

AGENDA REPORT
(AR)

Item Title: Conduct a Public Hearing and Approve the Draft FY 2022-2023 Community Development Block Grant (CDBG)’s Consolidated Annual Performance and Evaluation Report (CAPER) (Staff Contact: Alex Andrade, Economic Development Director, 408-586-3046; and Robert Musallam, Housing Division Manager, 408-586- 3275)
Category: Public Hearings-Community Development
Meeting Date: 9/5/2023
Recommendation:

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

2. Approve the draft FY 2022-2023 Community Development Block Grant (CDBG) Consolidated Annual Performance and Evaluation Report (CAPER).

3. Authorize the Acting City Manager, or designee, to make any necessary changes and to submit the approved draft FY 2022-2023 CAPER to the U.S. Department of Housing and Urban Development (HUD) to comply with CDBG requirements.

BACKGROUND:

Every September, the Consolidated Annual Performance and Evaluation Report (CAPER) is required to be submitted to the U.S. Department of Housing and Urban Development (HUD). The CAPER summarizes the accomplishments of the past funding cycle and the progress towards the priority needs and goals identified in the Consolidated Plan. The CAPER describes the City’s activities for FY 2022-2023 and the accomplishment toward meeting the priority needs and goals from the 2022-2025 Consolidated Plan. The CAPER further describes actual expenditures and outcomes relative to the targets in the FY 2022-2023 Annual Action Plan.

This CAPER is the first progress report for the 2022-2025 Consolidated Plan that was approved by the City Council in 2022.

ANALYSIS:

In FY 2022-2023, Community Development Block Grant (CDBG) allocations comprised of the City’s original formula allocation of $660,871, CDBG-CV (CARES Act) allocation of $35,829.57, and prior year unused funds in the amount of $77,561.90. In total, the City allocated $774,262.47 to 18 organizations for a total of 24 activities.

The CAPER identifies some of the major accomplishments in 2022-2023:
 Catholic Charites’ Long Term Care Ombudsman Program advocates for the rights of seniors and disabled residents in long-term care facilities and made unduplicated visits to 73 Milpitas residents in long-term care.
 Child Advocates of Silicon Valley is the only agency in the County that provides court-appointed volunteers (CASA) to each foster child. Child Advocates of Silicon Valley served and connected 9 Milpitas foster children youth and children to CASAs.
 Filipino American Chamber of Commerce provided hands-on training and a business seminar to 15 Milpitas small businesses on how to create and/or revamp their websites and marketing strategies.  Lighthouse of Hope Counseling Center provides counseling, psychological support, and education to the Milpitas community. Lighthouse of Hope served 14 Milpitas residents.  The Milpitas Senior Center (SNP) provided 139 Milpitas seniors with nutritious meals to promote health and food security.
 The Milpitas Senior Center (Technology) assisted 45 Milpitas seniors who need continued support and education in technology to help bridge the digital divide. 216 Item # 15.

 Next Door Solutions to Domestic Violence provided 44 residents with supportive services and emergency shelter for victims of domestic violence.
 Project Sentinel is contracted to handle fair housing and tenant-landlord cases. Project Sentinel handled 12 fair housing cases for the year, and 27 individuals benefitted from fair housing services.  Pragnya provided support to 100 children, youth, and adults from the Special Needs community by creating social-emotional connections and preventing further isolation by hosting various activities and programs.
 Rebuilding Together Silicon Valley preserves affordable housing by providing safety, energy efficiency, accessibility repairs, and improvements to qualified low-income renters and homeowners. Rebuilding Together made housing repairs for 27 Milpitas households.  Senior Adults Legal Assistance provided free legal services to 25 qualified Milpitas seniors.  Silicon Valley Independent Living Center provided housing services for persons with disabilities to 60 individuals.
 Sourcewise provided nutritious home‐delivered meals to vulnerable 67 Milpitas seniors who have been impacted by the pandemic.
 Terrace Gardens Senior Housing met its goal of rehabilitating the existing community room wood trellis.
 Terrace Gardens Meal Delivery provided meal delivery services to 185 residents in lieu of community dining, due to the COVID-19 pandemic.
 The Health Trust’s Meals on Wheels Program provided 2,211 hot meals to 19 homebound, low- income seniors. Additionally, they completed 316 wellness checks for Milpitas seniors.  YWCA Silicon Valley provided supportive services and emergency shelter to 34 victims of domestic violence. Additionally, they responded to 52 crisis calls via the 24-hour crisis line and served 5 persons with crisis counseling identified by the Milpitas Police Department.

A total of 1,031 Milpitas residents benefitted from the CDBG program in FY 2022-2023.

Most of our subrecipients met or exceeded their goals in FY 2022-2023. For the subrecipients that did not meet their goals, most described facing challenges with being understaffed and with difficulty finding qualified staff.

This will be an ongoing challenge for many of our partners while the economy remains in flux.

Our subrecipients demonstrated great flexibility in a time filled with ambiguity. It is through our partnership with our subgrantees that we continue to provide support, care, and essential services to our most vulnerable Milpitas residents.

FISCAL IMPACT:

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

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

2. Approve the draft FY 2022-2023 Community Development Block Grant (CDBG)’s Consolidated Annual Performance and Evaluation Report (CAPER).

3. Authorize the Acting City Manager, or designee, to make any necessary changes and to submit the approved draft FY 2022-2023 CAPER to the U.S. Department of Housing and Urban Development (HUD) to comply with CDBG requirements.

Attachment(s):

1. Draft FY 2022-2023 CAPER
217
Item # 15.

CIT

Y OF MILPITAS

DRAFT CONSOLIDATED ANNUAL

PERFORMANCE AND EVALUATION

REPORT (CAPER)
2022-2023
218
Item # 15.

CAPER 1
OMB Control No: 2506-0117 (exp. 09/30/2021)
C
ity of Milpitas
Consolidated Annual Performance and Evaluation Report (CAPER) FY 2022-2023 T

ABLE OF CONTENTS
CR-05 - Goals and Outcomes ....................................................................................................... 2 CR-10 - Racial and Ethnic composition of families assisted ........................................................ 9 CR-15 - Resources and Investments 91.520(a) ......................................................................... 10 CR-20 - Affordable Housing 91.520(b) ...................................................................................... 13 CR-25 - Homeless and Other Special Needs 91.220(d, e); 91.320(d, e); 91.520(c) .................. 15 CR-30 - Public Housing 91.220(h); 91.320(j) ............................................................................. 19 CR-35 - Other Actions 91.220(j)-(k); 91.320(i)-(j) ...................................................................... 20 CR-40 - Monitoring 91.220 and 91.230 ..................................................................................... 23 CR-45 - CDBG 91.520(c) ............................................................................................................. 24 219
Item # 15.

CAPER 2
OMB Control No: 2506-0117 (exp. 09/30/2021)
CR-05 - Goals and Outcomes
Progress the jurisdiction has made in carrying out its strategic plan and its action plan.

91.520(a)
This could be an overview that includes major initiatives and highlights that were proposed and executed throughout the program year.

B
elow is a description of the progress the City of Milpitas has made in achieving the goals outlined in the Fiscal Year 2022-2023 Annual Action Plan. The City achieved many of its annual goals and is on track to meet most of the three-year goals outlined in the Consolidated Plan (2022-2025). The following goals are the basis for the activities approved and funded in the Fiscal Year 2022-2023 Annual Action Plan:
• M
aintain and Preserve Existing Housing
• New Affordable Housing
• Affordable Housing Rental Rehabilitation
• Community Funding/Public Services
• Public services for low- and moderate-income residents at risk of eviction • Fair Housing
• Public Services for Children and Youth
• Public Services for Seniors
• Public services for Domestic Violence Support
• Public Improvements including accessibility and improving public facilities • Assist Microenterprises and Small Businesses
• Explore the use of HUD Section 108 Loan Guarantee Program Be
low highlight the funded organizations' accomplishments:
• Catholic Charites’ Long Term Care Ombudsman Program advocates for the rights of seniors and disabled residents in long-term care facilities and made unduplicated visits to 73 Milpitas residents in long-term care.
• Child Advocates of Silicon Valley is the only agency in the County that provides court- appointed volunteers (CASA) to each foster child. Child Advocates of Silicon Valley served and connected 9 Milpitas foster children youth and children to CASAs. • Filipino American Chamber of Commerce provided hands-on training and a business seminar to 15 Milpitas small businesses on how to create and/or revamp their websites and marketing strategies.
• Lighthouse of Hope Counseling Center provides counseling, psychological support, and education to the Milpitas community. Lighthouse of Hope served 14 Milpitas residents. • The Milpitas Senior Center (SNP) provided 139 Milpitas seniors with nutritious meals in order to promote health and food security.
• The Milpitas Senior Center (Technology) assisted 45 Milpitas seniors who need continued support and education in technology to help bridge the digital divide. 220
Item # 15.

CAPER 3
OMB Control No: 2506-0117 (exp. 09/30/2021)
• Next Door Solutions to Domestic Violence provided 44 residents with supportive services and emergency shelter for victims of domestic violence. • Project Sentinel is contracted to handle fair housing and tenant-landlord cases. Project Sentinel handled 12 fair housing cases benefitting a total of 27 residents with fair housing services.
• Pragnya provided support to 100 children, youth, and adults from the special needs community by creating social-emotional connections and preventing further isolation by hosting various activities and programs.
• Rebuilding Together Silicon Valley preserves affordable housing by providing safety, energy efficiency, accessibility repairs, and improvements to qualified low-income renters and homeowners. Rebuilding Together made housing repairs for 27 Milpitas households.
• Senior Adults Legal Assistance provided free legal services to 25 Milpitas seniors. • Silicon Valley Independent Living Center provided housing services for persons with disabilities to 60 individuals.
• So
urcewise provided nutritious home-d
elivered meals to 71 vulnerable Milpitas seniors
who have been impacted by the pandemic.
• T
errace Gardens Senior Housing met its goal of rehabilitating the existing community room wood trellis.
• Terrace Gardens Meal Delivery provided meal delivery services to 185 residents in lieu of community dining, due to the COVID-19 pandemic.
• The Health Trust’s Meals on Wheels Program provided 2,211 hot meals to 19 homebound, low-income seniors. Additionally, they completed 316 wellness checks for Milpitas seniors.
• YWCA Silicon Valley provided supportive services and emergency shelter to 34 victims of domestic violence. Additionally, they responded to 52 crisis calls via the 24-hour crisis line and served 5 persons with crisis counseling identified by the Milpitas Police Department.
221
Item # 15.

CAPER 4
OMB Control No: 2506-0117 (exp. 09/30/2021)
Comparison of the proposed versus actual outcomes for each outcome measure submitted with the consolidated plan and explain, if applicable, why progress was not made toward meeting goals and objectives. 91.520(g)
222
Item # 15.

CAPER 5
OMB Control No: 2506-0117 (exp. 09/30/2021)
Goal Category Source /
Amount Indicator Unit of
Measure
Expected
– Strategic
P
lan
Actual –
Strategic
Plan
Percent
Complete
Expected
–
Program
Year
Actual –
Program
Year
Percent
Complete
Maintain and
Preserve Existing
Housing
Affordable
Housing
Non-Homeless
Special Needs
$1,294,882.86
Homeowner
Housing
Rehabilitated
Household
housing unit 150 27 18% 27 27 100%
New Affordable
Housing
Affordable
Housing $50,000 Rental units
constructed
Units
Constructed 50 n/a n/a n/a n/a n/a
Affordable
Housing Rental
Rehabilitation
Non-housing
community
development
$100,000 Rental units
rehabilitated
Units
rehabilitated 148 1 48 100% 148 148 100%
Community
Funding/Public
Services
Homeless
Non-Homeless
Special Needs
$150,000
Number of
persons
assisted
Persons
assisted 500 174 35% 200 174 87%
Public services for
low- and
moderate-income
residents at risk of
eviction
Non-homeless
special needs
Homeless
$50,000 Homelessness
Prevention
Persons
assisted n/a 20 n/a n/a n/a n/a
Fair Housing
Affordable
Housing
Non-homeless
special needs
$150,000
Number of
persons
assisted
Persons
assisted 60 27 45% 20 27 135%
Public Services for
Children and
Youth
Non-homeless
special needs
Non-housing
community
development
$45,000
Number of
persons
assisted
Persons
assisted 50 9 18% 6 9 150%
223
Item # 15.

CAPER 6
OMB Control No: 2506-0117 (exp. 09/30/2021)
Table 1 - Accomplishments – Program Year & Strategic Plan to Date | Sections labeled TBD will be reported on the FY23-24 CAPER | Sections left blank will be reported by the Public Hearing Meeting on September 5th, 2023
Public Services for
Seniors
Non-homeless
special needs
Non-housing
community
development
$210,000
Number of
persons
assisted
Persons
assisted 1250 553 44% 697 553 79%
Public services for
Domestic Violence
Support
Non-homeless
special needs $75,000
Number of
persons
assisted
Persons
assisted 80 78 98% 115 78 68%
Public
Improvements
including
accessibility and
improving public
facilities
Non-housing
community
development
$450,000
Number of
persons
assisted with
improved
access to a
facility or
infrastructure
benefit
Persons
assisted 1000 TBD TBD TBD TBD TBD
Assist
Microenterprises
and Small
Businesses
Non-housing
community
development
$50,000 Businesses
assisted
New
Businesses
assisted
50 15 30% 15 15 100%
Explore the use of
HUD Section 108
Loan Guarantee
Program
Affordable
Housing
Homeless
Non-housing
community
development
n/a n/a n/a n/a n/a n/a n/a n/a n/a
224
Item # 15.

CAPER 7
OMB Control No: 2506-0117 (exp. 09/30/2021)
Assess how the jurisdiction’s use of funds, particularly CDBG, addresses the priorities and specific objectives identified in the plan, giving special attention to the highest priority activities identified.

This Consolidated Annual Performance Evaluation Report (CAPER) corresponds with the first Annual Action Plan years covered by the City’s 2022-2025 Consolidated Plan which was adopted by Milpitas City Council on June 14, 2022.

T
he CAPER provides a snapshot of how the City will utilize its CDBG allocation to meet the needs of the City’s low- and moderate-income individuals and the most vulnerable populations.

The following priorities were considered in order to meet the housing and community development needs in Milpitas:
• M
aintain and Preserve Existing Housing
• New Affordable Housing
• Affordable Housing Rental Rehabilitation
• Community Funding/Public Services
• Public services for low- and moderate-income residents at risk of eviction • Fair Housing
• Public Services for Children and Youth
• Public Services for Seniors
• Public Services for Domestic Violence support
• Public Improvements including accessibility and improving public facilities • Assist Microenterprises and Small Businesses
• Explore the use of HUD Section 108 Loan Guarantee Program T
he City was able to achieve most of its goals outlined in the 2022-2023 Annual Action Plan (AAP) through the CDBG formula and CDBG-CV funding.

T
he City allocated a total of $774,262.47 for Program Year 2022. The breakdown of funding allocation is as follows:

C
DBG Formula Funds for Program Year 2022: $660,871
CDBG Prior Year Unused Formula: $77,561.90
CDBG-CV Funds: $35,829.57
I
n total, 1,031 persons were assisted in Program Year 2022. Out of the 1,031 Milpitas residents served, 553 were seniors, which makes up 54% of the population served; 174 were low-and- moderate income community members, which makes up 17% of the population served; and 78 were survivors of domestic violence, which makes up 8% of the population served.

A
top priority for the City is to Maintain and Preserve Existing Housing. Through our partnership with Rebuilding Together Silicon Valley, a total of 27 homeowners/renters received assistance with emergency home repairs and safety modifications.
225
Item # 15.

CAPER 8
OMB Control No: 2506-0117 (exp. 09/30/2021)
A high emphasis on providing public services for the Milpitas senior population resonates city- wide. Eight public service allocations totaling $121,516.26 were approved benefiting seniors who are aging in place with long-term care, hot meals, housing search assistance, and services that help bridge the digital divide and free legal services. Additionally, Terrace Gardens, an 100% affordable senior housing development was allocated $30,000 in CDBG funding for necessary capital improvements to the property, primarily the rehabilitation of the community wood trellis. About 20% of the total CDBG funds were allocated to serving the Milpitas senior population.

The City allocated $48,750 for public service activities to benefit victims of domestic violence, $10,000 in public services for children and youth, and $56,290 to Project Sentinel to provide Fair Housing counseling to at-risk tenants in Milpitas.

One of the many hardships small business owners in Milpitas faced after the pandemic was keeping their doors open for business. A total of $16,199.55 was allocated to reinvigorate the operations of microenterprises in Milpitas. Through our partnership with the Filipino American Chamber of Commerce, 15 small businesses that fall within the LMI income limits received assistance with business mentoring and disaster planning/preparation. 226
Item # 15.

CAPER 9
OMB Control No: 2506-0117 (exp. 09/30/2021)
CR-10 - Racial and Ethnic composition of families assisted Describe the families assisted (including the racial and ethnic status of families assisted).

91.520(a)
CDBG
White 282
Black or African American 37
Asian 533
American Indian or American Native 4
Native Hawaiian or Other Pacific Islander 4
American Indian/Alaskan Native & White 0
Asian & White 2
Black/African American & White 1
A. Indian/Alaskan Native & Black/African A. 0
Other Multi-Racial 168
Total 1,031
Hispanic 50
Not Hispanic 981
Table 2 – Table of assistance to racial and ethnic populations by source of funds N
arrative
T
able 2 depicts the accurate racial and ethnic categories of total individuals served in Program Year 2022 using the CDBG formula and CDBG-CV funds. In total, the City’s CDBG program served 1,031 individuals in Program Year 2022. Of those individuals, approximately 27% were White; 4% were Black or African American; 52% were Asian; 1% were either American Indian/American Native, Native Hawaiian/Pacific Islander, American Indian/ Alaskan Native & White, Asian, and White, Black/African American and White. 16% of individuals reported as “Other Multi-Racial.” Of the 1,031 individuals served, approximately 5% were Hispanic. 227
Item # 15.

CAPER 10
OMB Control No: 2506-0117 (exp. 09/30/2021)
CR-15 - Resources and Investments 91.520(a)
Identify the resources made available
Source of Funds Source Resources Made
Available
Amount Expended
During Program Year
CDBG CDBG $1,595,364.45 $554,094.26

HOME HOME

HOPWA HOPWA

ESG ESG
Other Other
Table 3 - Resources Made Available
N
arrative
The attached PR26 Program Year 2022 report shows total expenditures of $554,094.26 in CDBG funds. Funds returned to the line of credit is in the amount of $122,248.13. A total of $118,138.19 was a repayment to activity 536 Silicon Valley Independent Living Center Rent Relief for Public Service cap overage. The line of credit funds will be reallocated in Program Year 2024. The remainder amount ($4,109.94) is an interest payment that does not belong in the line of credit line and needs to be transferred to the U.S. Treasury. This amount will be adjusted by HUD’s Fort Worth office. They will reverse the funds on the grant a remit them to Treasury.

The attached PR 26 CDBG-CV Financial Summary Report shows total program expenditures of $971,377.65. A total of $27,060.22 was spent in Program Year 2022. The remaining balance of $8,769.35 will be reallocated in Program Year 2024.

Identify the geographic distribution and location of investments Target Area Planned Percentage
of Allocation
Actual Percentage of
Allocation
Narrative
Description
City of Milpitas 100% 100%
Table 4 – Identify the geographic distribution and location of investments Narrative
The City of Milpitas has not established specific geographic target areas. The City attempts to provide resources to serve low- to moderate-income persons, city-wide. 228
Item # 15.

CAPER 11
OMB Control No: 2506-0117 (exp. 09/30/2021)
Leveraging
Explain how federal funds leveraged additional resources (private, state and local funds), including a description of how matching requirements were satisfied, as well as how any publicly owned land or property located within the jurisdiction that were used to address the needs identified in the plan.

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

In September 2021, the City Council approved the use of $1,100,000 in the American Rescue Plan Act (ARPA) dollars to expand the program to include mortgage relief. Under the ARPA Investment Plan, rent relief eligibility will be expanded to moderate-income residents and the City of Milpitas will now offer mortgage relief. Of the $1,100,000 appropriated, $150,000 will be used to partially fund a 3-year limited term Administrative Analyst. The remaining $950,000 will cover the cost of program administration ($85,500). Per City Council's direction, the remaining balance will be distributed with 75% ($648,375) for rent relief and 25% ($216,125) for mortgage relief. The existing Rent Relief Program has helped over 300 Milpitas residents through emergency hardship relief, eviction prevention, domestic violence relocation, child and family homelessness relief, and Section 8 good faith deposits.

S
ince March 2021, the City of Milpitas has contracted with WeHOPE’s Dignity on Wheels program. Dignity on Wheels provides a mobile trailer with a shower, laundry, restroom, and on- site case management. The case manager helps connect clients to resources and services such as identification document needs and identification renewal support. At each session, WeHOPE provides supplies that include towels, laundry pods, hair and body wash, hygiene kits, and occasional clothing donations. Prior to July 2023, the City allocated $96,552 of non-CDBG funding to WeHOPE's Dignity on Wheels Program which has serviced over 1000 individuals.

T
he City of Milpitas has also allocated $300,000 to partner with the County of Santa Clara’s Office of Supportive Housing to provide homeless outreach, engagement, and street-based case management services with the goal of connecting unhoused residents of the City of Milpitas to housing and other resources. The County’s Homeless Engagement and Access Team lead the City’s homeless outreach efforts in the community and are regularly on-site at the Dignity on Wheels service location to conduct assessments and further connect clients with a countywide network of services.

In 2017, Governor Brown signed a 15-bill housing package aimed at addressing the state’s housing shortage and high housing costs. This included Senate Bill 2 Building Homes and Jobs Act (SB-2), which created a recording fee on real estate documents to increase the supply of affordable homes in California. SB-2 established that 70% of the revenue collected, beginning in the calendar year 2019, will go to locally administered affordable housing, otherwise known as Permanent Local Housing Allocation (PLHA). The funding will help cities and counties increase the supply of housing for households at or below 60% of AMI; increase assistance to affordable 229
Item # 15.

CAPER 12
OMB Control No: 2506-0117 (exp. 09/30/2021)
owner-occupied workforce housing; assist persons experiencing or at risk of homelessness; facilitate housing affordability, particularly for lower-and moderate-income households; promote projects and programs to meet the local government’s unmet share of regional housing needs allocation; and ensure geographic equity in the distribution of the funds. With the funds from the PLHA, the City plans to provide HEAT and WHRAP funding. Of the City’s estimated entitlement of $1,017,554, the City was approved to designate 5% to program administration. The remaining balance will be split with 20% for homelessness outreach assessment funding and 80% for a Workforce Housing Rental Assistance Program (WHRAP).

T
he City of Milpitas offers a Below Market Rate (BMR) program to assist very-low, low-, and moderate-income households in becoming homeowners. Our BMR inventory consists of dwelling units acquired through the City’s Affordable Housing Ordinance. The City’s basic eligibility requirements to participate include being a first-time homebuyer, having the ability to provide at least a 10 percent required down payment, and for a household’s income to not exceed very-low, low-, and moderate income as defined by the California Department of Housing and Community Development (HCD). In Program Year 2022, a total of 3 BMR dwelling units (1 townhome and 2 condominiums) were sold to qualified first-time home buyers. 230
Item # 15.

CAPER 13
OMB Control No: 2506-0117 (exp. 09/30/2021)
CR-20 - Affordable Housing 91.520(b)
Evaluation of the jurisdiction's progress in providing affordable housing, including the number and types of families served, the number of extremely low-income, low-income, moderate-income, and middle-income persons served.

One-Year Goal Actual
Number of Homeless households to be
provided affordable housing units 0 0
Number of Non-Homeless households to be
provided affordable housing units 175 175
Number of Special-Needs households to be
provided affordable housing units 0 0
Total 175 175
Table 5 – Number of Households

One-Year Goal Actual
Number of households supported through
Rental Assistance 0 0
Number of households supported through
The Production of New Units 0 0
Number of households supported through
Rehab of Existing Units 175 175
Number of households supported through
Acquisition of Existing Units 0 0
Total 175 175
Table 6 – Number of Households Supported

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

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

Terrace Gardens is a deed-restricted, very low and low-income senior housing facility. In Program Year 2022, Terrace Gardens received $30,000 to rehabilitate the community wood trellis. The community wood trellis is an essential place for the staff to hold fun and teaching opportunities for low-income senior residents. With the completion of the rehab project, a total number of 148 households were supported.

231
Item # 15.

CAPER 14
OMB Control No: 2506-0117 (exp. 09/30/2021)
One of the goals the City has is to provide rehabilitation funding for affordable housing projects.

As part of the City’s Home Rehabilitation program, the City partners with Rebuilding Together Silicon Valley (RTSV), to provide Milpitas residents with emergency repairs for qualified low- income homeowners. The program is designed to preserve affordable housing by providing safety, energy efficiency, accessibility repairs, and improvements to qualified households. In Program Year 2022, RTSV received $249,566.15 in funding and this provided housing repairs for 27 Milpitas households, which meets the annual goal.

Discuss how these outcomes will impact future annual action plans.

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

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

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

Number of Households Served CDBG Actual HOME Actual
Extremely Low-income 377 0
Low-income 578 0
Moderate-income 47 0
Total 1,002 0
Table 7 – Number of Households Served

Narrative Information
In Program Year 2022, the City of Milpitas served a total of 1,031 households. In total, 37% were considered extremely low-income; 56% were considered low-income; and 4% were considered moderate-income. A total of 3% of households served were considered non-LMI. 232
Item # 15.

CAPER 15
OMB Control No: 2506-0117 (exp. 09/30/2021)
CR-25 - Homeless and Other Special Needs 91.220(d, e); 91.320(d, e); 91.520(c) Evaluate the jurisdiction’s progress in meeting its specific objectives for reducing and ending homelessness through:

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

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

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

In September 2021, the City Council approved the use of $1,100,000 in ARPA dollars to expand the program to include mortgage relief. Of the $1,100,000 appropriated, $150,000 will be used to partially fund a 3-year limited term Administrative Analyst. Per City Council's direction, the remaining balance will be distributed with 75% ($648,375) for rent relief and 25% ($216,125) for mortgage relief. The remaining $950,000 will cover both rent and mortgage relief and is estimated to benefit 130 households with rental assistance and 14 households with mortgage assistance.

WeHOPE
In December 2020, the City began a pilot program with Project WeHOPE to administer their Dignity on Wheels Mobile Shower and Laundry program in Milpitas. The City allocated $21,372 in funding to the program and further demonstrated its commitment to providing the unhoused community with services by further allocating $75,180 to extend its existing service contract until June 30, 2023. In June 2023, as part of the City’s budget process, $150,000 was allocated to enter a new contract with Dignity on Wheels that would cover services until June 30, 2026.

To date, 1,041 amount of presumed LMI individuals have benefited from t he activity. 233
Item # 15.

CAPER 16
OMB Control No: 2506-0117 (exp. 09/30/2021)
Homeless Engagement and Access Team (HEAT)
The City contracted with the Santa Clara County Office of Supportive Housing to provide assessment services to the unhoused via the Homeless Engagement and Assessment Team (HEAT). The HEAT team, contracted through Abode Services, provides ongoing outreach and assessment services to the unhoused community in Milpitas. An initial allocation of $200,000 was made by the Council in December 2020. An additional $100,000 was recently allocated to extend the service contract for another year. To date, 287 presumed LMI individuals have benefited from the activity.

Permanent Local Housing Allocation (PLHA)
In July 2023, the City received its signed Standard Agreement with HCD approving its 2019, 2020, and 2021 funding applications for $1,017,554. The City was approved to designate money to continue funding the Homeless Engagement and Access Team as well as for the creation of a Workforce Housing Rental Assistance Program. The Workforce Housing Rental Assistance Program will be available for individuals whose AMI is 30% or less.

A
ddressing the emergency shelter and transitional housing needs of homeless persons The City continues to work closely with the County Continuum of Care and the Santa Clara County Office of Supportive Housing to address the emergency shelter and transitional housing needs of our homeless residents. In the next fiscal year, the City will report that they have formalized an outreach and assessment agreement with the County of Santa Clara to provide on-site case management, assessment, and referral to other services to help house our homeless population.

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

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

T
he City of Milpitas also contracts with Abode Services through the County of Santa Clara’s Office of Supportive Housing to provide homeless outreach, engagement, and street-based case management services. The County’s Homeless Engagement and Access Team conducts assessments of unhoused residents and connect clients with a countywide network of services including emergency shelter and transitional housing.
234
Item # 15.

CAPER 17
OMB Control No: 2506-0117 (exp. 09/30/2021)
H
elping low-income individuals and families avoid becoming homeless, especially extremely low-income individuals and families and those who are: likely to become homeless after being discharged from publicly funded institutions and systems of care (such as health care facilities, mental health facilities, foster care, and other youth facilities, and corrections programs and institutions); and, receiving assistance from public or private agencies that address housing, health, social services, employment, education, or youth needs M
ilpitas does not currently have an institutional discharge policy. The City collaborates with the Santa Clara County CoC, which recently updated its Quality Assurance Standards to include a homeless discharge coordination policy.

The County CoC endeavors to provide guidance and resources to those released from institutions. The discharge policy includes access to reentry resource centers where, for example, an VI-SPIDAT could be administered. The VI-SPIDAT measures the acuity level of an individual and is used to inform what type of support or housing needs are required. It also serves as the entry point for access to other resources or supportive services, such as residential or outpatient treatment, transitional housing, or emergency shelter access.

CDBG and City Local Funds
• Rent Relief Program: The Silicon Valley Independent Living Center has been administering the City’s Rent Relief Program, which offers low- and moderate-income residents no more than 3 months of rental assistance to prevent eviction, avoid community displacement, and to remain housed.
• Child Advocates of Silicon Valley: Child Advocates connect court-appointed special advocates (CASAs) to foster children. These volunteers must make a commitment to the children for a long-term, many for his or her entire life. The consistent support of the CASA is often the only adult who has steadily remained with the child, providing crucial mentorship.
• Seniors Adults Legal Assistance (SALA): SALA is committed to providing free-legal services to seniors. Legal services that SALA provides ranges from: public benefits, long- term care, alternatives to institutionalization, elder abuse, long-term care insurance, incapacity planning, probate, simple wills and housing – related to Landlord-Tenant issues. Often, many seniors do not know his or her housing rights or sign over the will of their house without knowing, and with fixed income, many are unable to provide legal help. SALA provides legal help free of charge for these low to extremely low-income seniors.

H
elping homeless persons (especially chronically homeless individuals and families, families with children, veterans and their families, and unaccompanied youth) make the transition to permanent housing and independent living, including shortening the period of time that individuals and families experience homelessness, facilitating access for homeless individuals and families to affordable housing units, and preventing individuals and families who were recently homeless from becoming homeless again
235
Item # 15.

CAPER 18
OMB Control No: 2506-0117 (exp. 09/30/2021)
As noted above, the City contracted with the Santa Clara County Office of Supportive Housing to provide assessment services to the unhoused via the Homeless Engagement and Assessment Team (HEAT). The HEAT team, contracted through Abode Services, provides ongoing outreach and assessment services to the unhoused community in Milpitas. In Program Year 2022, a total of 99 outreach contacts were provided to unhoused individuals. The total number of unhoused enrolled in the SCC HEAT program is 82 and the number of VI-SPDAT assessments administered is 99.

T
he City of Milpitas also partners with WeHOPE’s Dignity on Wheels program to provide free hot showers, laundry, and case management services for the unhoused Milpitas community. In Program Year 2022, a total number of 51 sessions were conducted in which 619 individuals participated. A total of 996 showers and 420 loads of laundry were provided by the program. 236
Item # 15.

CAPER 19
OMB Control No: 2506-0117 (exp. 09/30/2021)
CR-30 - Public Housing 91.220(h); 91.320(j)
Actions taken to address the needs of public housing
This is not applicable, there are no public housing developments in the City of Milpitas.

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

Actions taken to provide assistance to troubled PHAs
Not applicable.
237
Item # 15.

CAPER 20
OMB Control No: 2506-0117 (exp. 09/30/2021)
CR-35 - Other Actions 91.220(j)-(k); 91.320(i)-(j)
Actions taken to remove or ameliorate the negative effects of public policies that serve as barriers to affordable housing such as land use controls, tax policies affecting land, zoning ordinances, building codes, fees and charges, growth limitations, and policies affecting the return on residential investment. 91.220 (j); 91.320 (i) Resolution No. 8523
The City adopted Resolution No. 8523 on February 2, 2016, which recognizes homelessness as a crucial problem in the County and will help contribute to future affordable housing projects that will house the homeless.

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

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

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

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

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

A
ctions taken to reduce lead-based paint hazards. 91.220(k); 91.320(j) Historically, the County of Santa Clara has received funding from State’s Department of Health Service and Federal Government for Center for Disease Control to implement a Childhood Lead 238
Item # 15.

CAPER 21
OMB Control No: 2506-0117 (exp. 09/30/2021)
Poisoning Prevention Program. The funded programs include: community outreach screen, case management, and public education to inform low-to-moderate income and older communities.

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

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

Actions taken to reduce the number of poverty-level families. 91.220(k); 91.320(j) The City of Milpitas prioritized the needs of microenterprises during the pandemic. Under the American Rescue Plan Act (ARPA), various small Milpitas businesses received financial assistance due to the economic hardship brought on by the COVID-19 pandemic. Selected participants must have met the very low, low, or moderate-income clientele level in order to receive the grant. The Enterprise Foundation collected income statements, tax returns, and other documents to confirm eligibility to HUD’s guidelines. The total available funds awarded for the Small Business Assistance Grant Program was $1,570,000. A total of 343 eligible small business applications were received by the City. On April 8 2022, 276 grants of $5,000 ($1,380,000) and 67 grants of $1,700 ($113,900) were awarded to various microenterprises in Milpitas. This means all the business applicants deemed eligible received funds including 46 daycare centers.

A CDBG funded Microenterprise Grant Program administered by FORWARD will come online in Program Year 2023. A total of 25 microenterprises will receive a $2,000 grant. The new program will follow the eligibility process of the prior Small Business Assistance Grant Program.

Selected participants must have met the very low, low, or moderate-income clientele level in order to receive the grant.

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

Regular quarterly meetings between entitlement jurisdict ions at the CDBG Coordinators meeting.

Meet with the Regional Housing Working Group
Joint jurisdiction Request for Proposals and project review committees 239
Item # 15.

CAPER 22
OMB Control No: 2506-0117 (exp. 09/30/2021)
Coordination on project management for projects funded by multiple jurisdictions Community Development Roundtable monthly meetings with the real estate and development communities
Actions taken to enhance coordination between public and private housing and social service agencies. 91.220(k); 91.320(j)
The City benefits from a strong jurisdiction and region-wide network of housing and community development partners, such as the County and the CoC. To improve intergovernmental and private sector cooperation, the City will continue to participate with other local jurisdictions and developers in sharing information and resources.

Identify actions taken to overcome the effects of any impediments identified in the jurisdictions analysis of impediments to fair housing choice. 91.520(a) The City continues to provide funding for Project Sentinel, who the City contracts for fair housing issues. Project Sentinel is a private, non-profit agency providing fair housing, tenant- landlord counseling, and dispute resolution services. Additional services include counseling, case intake, education, and outreach. Other services include HUD-certified mortgage default counseling and First-Time Homebuyer workshops are open to Milpitas residents. 240
Item # 15.

CAPER 23
OMB Control No: 2506-0117 (exp. 09/30/2021)
CR-40 - Monitoring 91.220 and 91.230
Describe the standards and procedures used to monitor activities carried out in furtherance of the plan and used to ensure long-term compliance with the requirements of the programs involved, including minority business outreach and the comprehensive planning requirements
New to Program Year 2022, the City of Milpitas has developed a monitoring plan with details on standards and procedures for our partnerships with subrecipients.

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

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

During this Program Year, staff met with various subrecipients to get a better understanding of the services provided. Additionally, staff met to discuss best practices and data collection. Staff will continue to meet with subrecipients for monitoring via online or in-person. Housing staff is available to subrecipients if they ever have any questions regarding the program. For new subrecipients, staff will work closely with the organization to ensure compliance.

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

As described in the City’s approved Citizen Participation Plan, the CAPER was made available in the Public Library, City’s Website, City Hall, and per request via email to the public for public comment for 15 days. A public notice was published in the Milpitas Post and City website on August 18, 2023. Public notices were translated into Spanish, Vietnamese, and Simplified Chinese to further enhance communication with residents whose primary language is not English.
241
Item # 15.

CAPER 24
OMB Control No: 2506-0117 (exp. 09/30/2021)
CR-45 - CDBG 91.520(c)
Specify the nature of, and reasons for, any changes in the jurisdiction’s program objectives and indications of how the jurisdiction would change its programs as a result of its experiences.

There are no changes in the objectives of the program.

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

242
Item # 15.

CITY OF MILPITAS

AGENDA REPORT
(AR)

Item Title: Adopt a Resolution Certifying Election Results and Adding Tract No. 10592 to Community Facilities District 2008-1 (Annexation No. 25); Approve Final Tract Map No. 10592 for a Residential Project at 2001 Tarob Court; and Approve and Authorize the City Manager to Execute the Subdivision Improvement Agreement. (Staff Contact: Roberto Alonzo, Principal Engineer, 408-586-3316) Category: Consent Calendar-Community Development
Meeting Date: 9/5/2022
Recommendation:
(1) Following receipt of election results from the City Clerk, adopt a resolution certifying election results and adding Tract No. 10592 to Community Facilities District 2008-1 (Annexation No. 25); and
(2) Approve Final Tract Map No. 10592, including all offers of dedications as stated and depicted on the final map upon completion and acceptance of improvements; and (3) Approve and authorize the City Manager to execute the Subdivision Improvement Agreement between the City of Milpitas and KB Home South Bay, Inc.

BACKGROUND:

On August 20, 2019, the City Council approved a Site Development Permit No. SD18-0014, Conditional Use Permit No. UP19-0009, Vesting Tentative Map No. MT18-0004, and Environmental Assessment No. EA19- 0002 to allow construction of 40 unit residential condominium building, up to 49 feet in height (four stories), with parking for up to 74 vehicles, located on a 1.22 acre site at 2001 Tarob Court. This project is known as Lumen, and the developer is KB Home South Bay, Inc. (Developer).

ANALYSIS:

The final map for the development is now complete and ready for approval by the City Council. The City Engineer has examined the final map for Tract No. 10592 and determined that the map is substantially the same as the previously approved Vesting Tentative Map and finds that it conforms to all requirements of the State of California Subdivision Map Act, Milpitas Municipal Code (MMC), and the terms and conditions of the Vesting Tentative Map. The Developer has offered required dedications to the City for public use, including easements for public street, public service and utility and emergency vehicle access purposes, as shown on the final map. Staff recommends the City Council approve the final map and to accept the dedications, subject to completion and acceptance of public improvements to be installed by the Developer.

The Developer has agreed to enter into a Subdivision Improvement Agreement (SIA) with the City for the construction of off-site public improvements for the project which will be completed with the on-site work, and the public improvements will be accepted by the City after final map approval and completion of construction.

Offsite public improvements to be constructed and accepted by the City include asphalt concrete pavement, signing and striping, curb and gutter, sidewalk, driveway approach, utility mains and services, streetlights, landscaping and other miscellaneous items of work identified on the improvement plans. The water main replacement improvements within the site and its utility easement will be reimbursed by the City to the Developer through a separate Reimbursement Agreement with TASP funds. The improvements will be completed within 1-year from the date of the SIA, and the work is guaranteed by bonds or similar securities to be posted by the Developer in the amount of $329,000. The water main improvements that will be reimbursed by the City will have a separate and specific bond in the amount of $149,000.

The City Engineer has reviewed the public improvement plans (2-1447) and is recommending the City Council approve the Subdivision Improvement Agreement to allow for the construction of public improvements after final map approval. 243
Item # 16.

The final map for Tract No. 10592 is subject to annexation into the Community Facilities District No. 2008-1 (CFD 2008-1). The City has on file a Certificate of Registrar of Voters from the County of Santa Clara certifying that there are currently no registered voters residing within the boundaries of the proposed CFD Annexation No. 25 for this development. (The certificate indicates that there were previously two voters registered within the boundaries, but those registrations have been canceled by either relocation or death of the registered voter.) The Developer is the sole property owner, and on September 5, 2023, the property owner was scheduled to vote on agreeing to the proposed Annexation No. 25. The resolution attached hereto allows the Council to certify the results of the election on annexation into CFD 2008-1. Annexation into CFD 2008-1 is subject to the provisions of the Mello-Roos Community Facilities Act of 1982, commencing with Section 53311 of the Government Code. While the Act has a number of requirements for annexation and imposition of the special tax, the Developer (as the sole landowner within the annexation territory) has agreed to waive many of the formalities including the right to have the special election conducted within the time periods specified in Government Code Section 53326, requirement for the mailing of the election ballot, requirement for the ballot to be accompanied by arguments for or against the ballot measure and the impartial analysis as required by Government Code Section 53327, and the right to protest, complaint or legal action of any nature pertaining to the procedures to be undertaken for the conduct of such election. The City Attorney has reviewed and agrees with the formalities to be waived, and a copy of the waiver executed by the Developer is on file with the City Clerk.

POLICY ALTERNATIVE(S):

Alternative 1:

Deny approval of Final Map and Subdivision Improvement Agreement.

Pros: None

Cons: The denial of approval of the Final Map or the Subdivision Improvement Agreement will cause the lot to remain vacant and undeveloped. The City would not benefit from the addition of 32 new townhomes.

Reason for Not Recommending: To allow the development to move forward, staff recommends approval of Final Map and Subdivision Improvement Agreement for Tract No. 10592.

FISCAL IMPACT:

Adding Tract No. 10592 to the CFD No. 2008-1 would allow the City to levy special taxes to properties within Tract No. 10592, in order to fund for public services within TASP.

California Environmental Quality Act (CEQA):

The Planning Division conducted an initial environmental assessment (P-EA19-0002) of the project in accordance with the California Environmental Quality Act (CEQA). The assessment concluded that none of the circumstances necessitating preparation of a subsequent or supplemental EIR are associated with the Project.

The assessment also concluded that an Addendum to the TASP EIR is the appropriate document to address these modifications rather than a subsequent EIR. The Addendum fully addressed all potential impacts associated with this project, and no material changes have been made to the project that would alter the conclusions of the Addendum.

As separate and independent bases, the project is exempt from further CEQA review pursuant to CEQA Guidelines Sections 15182 (Project Consistent with a Specific Plan), 15183 (Project Consistent with the General Plan), and 15168 (Projects Consistent with a Program EIR).

244
Item # 16.

RECOMMENDATION:
(1) Following receipt of election results from the City Clerk, adopt a resolution certifying election results and adding Tract No. 10592 to Community Facilities District 2008-1 (Annexation No. 25); and (2) Approve Final Tract Map No. 10592, including all offers of dedications as stated and depicted on the final map upon completion and acceptance of improvements; and (3) Approve and authorize the City Manager to execute the Subdivision Improvement Agreement between the City of Milpitas and KB Home South Bay, Inc.

Attachment(s):

1. Resolution certifying election results and adding Tract No. 10592 to Community Facilities District No. 2008- 1 (Annexation No. 25)

2. Final Tract Map No. 10592

3. Subdivision Improvement Agreement

245
Item # 16.

RESOLUTION
NO. __
_
_

A

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MILPITAS CERTIFYING THE RESULTS OF AN ELECTION AND ADDING TERRITORY TO COMMUNITY FACILITIES DISTRICT NO. 200 8 -
1 (PUBLIC SERVICES)

(Annexation
No.
2 5
)

WHEREAS
, the City Cou
ncil of the C
ity of Milpitas
(the “City Council”) has previously formed Community
Facilities District No. 2008
-
1 (Public Services) (“CFD No. 2008
-
1”) pursuant to the Mello
-
Roos Community Facilities
Act of 1982 (the “Act”), as amended, for the purpose of financing certa in Public Services; and

WHEREAS
, acting pursuant to the Act, the City Council also authorized by the adoption of Resolution No. 8601

(the “Resolution Authorizing Future Annexation”) the annexation in the future of territory to CFD No. 2008 -
1, such
territo
ry designated as Future Annexation Area, Community Facilities District No. 2008 -
1 (the “Future Annexation
Area”); and

WHEREAS
, at this time the unanimous consent to the annexation of certain territory located within the Future Annexation Area to CFD No. 2
008
-
1 has been received from the property owner of such territory, and such territory has been designated as Annexation
No.
25 (the

"Territory"); and

WHEREAS
, less than twelve (12) registered voters have resided within the Territory for each of the ninety

(90)
days preceding the election date established for the Territory, therefore, pursuant to the Act the qualified elector of the Territory shall be the "landowner," as such term is defined in Government Code Section 53317(f), of such Territory and such la
ndowner who is the owner of record as of the applicable election date, or the authorized representative thereof, shall have one vote for each acre or portion of an acre of the parcel of land that landowner owns within such Territory; and

WHEREAS
,
the time

limit specified by the Act for conducting an election to submit the levy of the special taxes on the Territory to the qualified elector thereof and the requirements for impartial analysis and ballot arguments have been waived with the unanimous consent of

the qualified elector of the Territory; and

WHEREAS
, the City Clerk of the City of Milpitas has caused a ballot to be distributed to the qualified elector of the Territory, has received and canvassed such ballot and made a report to the City Council reg arding the results of such
canvass, a copy of which is attached as
Exhibit A

hereto and incorporated herein by this reference; and

WHEREAS
, at this time the measure voted upon and such measure did receive the favorable vote of the qualified elector of th
e Territory, and the City Council desires to declare the results of the election; and

WHEREAS
, a map showing the Territory and designated as Annexation Map No.
2 5

(the "Annexation Map"), a
copy of which is attached as
Exhibit B

hereto and incorporated her
ein by this reference, has been submitted to this
legislative body.

NOW, THEREFORE,

the City Council of the City of Milpitas, California, acting as the legislative body of Community Facilities District No. 2008
-
1,
hereby finds, determines and resolves as

follows
:

1. Recitals.

The above recitals are true and correct.

2. Findings.

This legislative body does hereby further determine as follows:

A.

The unanimous consent as described in the recitals hereto to the annexation of the Territory to CFD No. 2008
-
1 has b
een given by the owner of the Territory and such consent shall be kept on file in the Office of the City Clerk of the City of Milpitas.

B.

Less than twelve (12) registered voters have resided within the Territory for each of the ninety (90) days preceding th
e election date established for the each of the parcels located within the 246
Item # 16.
2 Resolution No. ____

Territory, therefore, pursuant to the Act the qualified elector for the Territory shall be the "landowner" of the Territory as such term is defined in Government Code Section 53317( f).

C.

The qualified elector of the Territory has voted in favor of the levy of special taxes on the Territory upon its annexation to CFD No. 2008
-

1. 3.

Territory.

The boundaries and parcels of property within the Territory and on which special taxes will be levied in order to pay for the costs and expenses of authorized Public Services are shown on the Annexation Map as submitted to and hereby approved by this legislative body.

4. Declaration of Annexation.

This legislative body does hereby determine and decla
re that the Territory, and
each parcel therein, is now added to and becomes a part of CFD No. 2008 -

1. The City Council, acting as the
legislative body of CFD No. 2008
-
1, is hereby empowered to levy the authorized special tax within the Territory.

5. Notice.

Immediately upon adoption of this Resolution, notice shall be given as follows:

A.

A copy of the Annexation Map as approved shall be filed in the Office of the County Recorder no later than fifteen (15) days after the date of adoption of this Resolution.

B.

A
n Amendment to the Notice of Special Tax Lien (Notice of Annexation) shall be recorded in the Office of the County Recorder no later than fifteen (15) days after the date of adoption of this Resolution.

6. Effective Date.

This Resolution shall become effecti
ve upon its adoption.

PASSED AND ADOPTED

this __
___

day of __________, 20
2 3
,
by the following
vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

ATTEST
:

Suzanne Guzzetta
,
City Clerk

APPROVED
:

Carmen Montano
,
Mayor

APPROVED AS TO FORM:

_____________________________
_____

M
ichael Mutalipassi
, City Attorney

247
Item # 16.

Exhibit
A

EXHIBIT A

CERTIFICATE OF ELECTION OFFICIAL

AND STATEMENT OF VOTES CAST

STATE OF CALIFORNIA

)

) ss.

COUNTY OF SANTA CLARA

)

The undersigned, ELECTION OFFICIAL OF THE CITY OF MILPITAS, COUNTY OF SANTA CLAR A,
STATE
OF

CALIFORNIA, DOES HEREBY CERTIFY that pursuant to the provisions of Section 53326 of the Government Code and Division 12, commencing with Section 17000 of the Elections Code of the State of California, I did canvass the returns of the votes cast

at the

C

ITY OF MILPITAS

COMMUNITY FACILITIES DISTRICT NO. 2008
-
1 (PUBLIC SERVICES)

SPECIAL ELECTION

ANNEXATION
NO.
2 5

held on the election date established for each parcel located within the territory included in Annexation No.
2 5
.

I FURTHER CERTIFY t
hat this
St
atement of Votes Cast shows the whole number of votes cast in the area proposed to be annexed to Community Facilities District No. 2008 -
1 for or against the Measure are full, true and
correct.

VOTES CAST ON PROPOSITION 1:

YES

NO

WITNESS my hand this

day of

, 20__.

S

UZANNE GUZZETTA
,

CITY CLERK

ELECTION OFFICIAL

CITY OF MILPITAS

OF THE STATE OF CALIFORNIA

248
Item # 16.

Exhibit
B

EXHIBIT

B

ANNEXATION MAP

249
Item # 16.

I-680MONTAGUE EXPYS MAIN STMCCANDLESS DRTRADE ZONE BLVDLUNDY AVE TAROBCTMCCARTHY BLVDGREAT MALL PKWYN CAPITOL AVEI-880MONTAGUE EXPYPROJECTSITE

OWNER'S ACKNOWLEDGEMENT

OWNER'S STATEMENT

SURVEYOR'S STATEMENT
BEING A PORTION OF PARCEL 1 AS SHOWN ON THAT CERTAIN MAP ENTITLED"PARCEL MAP", WHICH WAS FILED FOR RECORD IN THE OFFICE OF THERECORDER OF THE COUNTY OF SANTA CLARA, STATE OF CALIFORNIA, ONNOVEMBER 28, 1978 IN BOOK 431 OF MAPS, AT PAGES 2 AND 3.CITY OF MILPITAS, STATE OF CALIFORNIATRACT MAP 105922001 TAROB COURTFOR 32 RESIDENTIAL CONDOMINIUM UNITSSheet of 3JOB # 3266022AUGUST 2023BUILDING RELATIONSHIPS ONE PROJECT AT A TIME4670 WILLOW ROAD, STE 125Tel 925.847.1556Fax 925.847.1557PLEASANTON, CA 94588

CITY SURVEYOR'S STATEMENT

CITY CLERK'S STATEMENT

CITY ENGINEER'S STATEMENT

GEOTECHNICAL NOTE
NOTES
VICINITY MAPN.T.S

COUNTY RECORDER'S STATEMENT
1 250
Item # 16.

TAROB COURTLUNDY PLACE

LUNDY AVENUEEXISTING BOUNDARY
BEING A PORTION OF PARCEL 1 AS SHOWN ON THAT CERTAIN MAP ENTITLED"PARCEL MAP", WHICH WAS FILED FOR RECORD IN THE OFFICE OF THERECORDER OF THE COUNTY OF SANTA CLARA, STATE OF CALIFORNIA, ONNOVEMBER 28, 1978 IN BOOK 431 OF MAPS, AT PAGES 2 AND 3.CITY OF MILPITAS, STATE OF CALIFORNIATRACT MAP 105922001 TAROB COURTFOR 32 RESIDENTIAL CONDOMINIUM UNITSSheet of 3JOB # 3266022AUGUST 2023BUILDING RELATIONSHIPS ONE PROJECT AT A TIME4670 WILLOW ROAD, STE 125Tel 925.847.1556Fax 925.847.1557PLEASANTON, CA 94588

BASIS OF BEARINGSREFERENCES
2 LEGENDABANDONMENT NOTES
251
Item # 16.

PRIVATE STREETPRIVATE STREET

LUNDY AVENUETAROB COURTSTREET ABANDONMENT

REFERENCES
3BEING A PORTION OF PARCEL 1 AS SHOWN ON THAT CERTAIN MAP ENTITLED"PARCEL MAP", WHICH WAS FILED FOR RECORD IN THE OFFICE OF THERECORDER OF THE COUNTY OF SANTA CLARA, STATE OF CALIFORNIA, ONNOVEMBER 28, 1978 IN BOOK 431 OF MAPS, AT PAGES 2 AND 3.CITY OF MILPITAS, STATE OF CALIFORNIATRACT MAP 105922001 TAROB COURTFOR 32 RESIDENTIAL CONDOMINIUM UNITSSheet of 3JOB # 3266022AUGUST 2023BUILDING RELATIONSHIPS ONE PROJECT AT A TIME4670 WILLOW ROAD, STE 125Tel 925.847.1556Fax 925.847.1557PLEASANTON, CA 94588

BASIS OF BEARINGS
LEGEND

ABANDONMENT NOTES
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EXHIBIT “C”

SURETY BONDS AND OTHER SECURITY
TRACT NO. 10592
As evidence of understanding the provisions contained in this Agreement, and of the Developer’s intent to comply with same, the Developer has submitted the below described security in the amounts required by this Agreement, and has affixed the appropriate signatures thereto:

PERFORMANCE BOND PRINCIPAL AMOUNT: $329,000
Surety: Liberty Mutual Insurance Company
Attorney-in-fact: Brenda Wong, Marsh USA Inc.

Address: 633 W. 5th Street, Suite 1200
Los Angeles, CA 90071
MATERIAL AND LABOR BOND PRINCIPAL AMOUNT: $329,000
Surety: Liberty Mutual Insurance Company
Attorney-in-fact: Brenda Wong, Marsh USA Inc.

Address: 633 W. 5th Street, Suite 1200
Los Angeles, CA 90071

WATER MAIN
PERFORMANCE BOND PRINCIPAL AMOUNT: $149,000
Surety: Liberty Mutual Insurance Company
Attorney-in-fact: Brenda Wong, Marsh USA Inc.

Address: 633 W. 5th Street, Suite 1200
Los Angeles, CA 90071

WATER MAIN
MATERIAL AND LABOR BOND PRINCIPAL AMOUNT: $149,000
Surety: Liberty Mutual Insurance Company
Attorney-in-fact: Brenda Wong, Marsh USA Inc.

Address: 633 W. 5th Street, Suite 1200
Los Angeles, CA 90071

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Item # 16.

CITY OF MILPITAS

AGENDA REPORT
(AR)

Item Title: Accept an Allocation of $1,600,000 in State Funding for the Milpitas SMART Program, Approve a Budget Appropriation into CIP Project No. 3493, and Provide Direction to Staff on Proposed Program Modifications (Staff Contact: Ashwini Kantak, Assistant City Manager, 408-586-3053, Jay Lee, Interim Planning Director, 408-586-3077)
Category: Community Development
Meeting Date: 9/5/2023
Recommendation:

1. Accept $1,600,000 in State funding through the Budget Act of 2023 (AB 102) for the Milpitas SMART program and approve a budget appropriation of $1,600,000 in State funding into CIP Project No. 3493 Milpitas SMART.

2. Receive a presentation on the current Milpitas SMART pilot program and provide direction on staff recommendations for proposed program modifications.

Background:

In November 2016, Santa Clara County voters approved the 2016 Measure B ballot measure, a 30-year half- cent countywide sales tax to enhance transit, highways, expressways and active transportation programs for bicycles and pedestrians. The Santa Clara Valley Transportation Authority (VTA) established the 2016 Measure B Innovative Transit Service Models Program to provide approximately $6 million in funding to eligible cities through a competitive grant application process.

City staff in partnership with RideCo, a transportation consulting firm that provides on-demand transit solutions, submitted a grant application for funding through the Innovative Transit Service Models Program to develop and implement Milpitas SMART, a 12-month pilot program to provide a flexible, convenient first/last-mile transit solution with convenient connections to VTA light rail and the Milpitas Transit Center. On March 4th, the VTA Board of Directors approved the recommended projects, including Milpitas SMART, and authorized the General Manager to execute the necessary agreements. The City of Milpitas was awarded the full amount of the grant request in the amount of $1,084,732. On April 5, 2022, the City Council authorized the City Manager to execute a funding agreement with VTA to receive this funding and a subscription and services agreement with RideCo in a not-to-exceed amount of $1,355,916 for consultant services to operate Milpitas SMART.

Milpitas SMART launched on September 12, 2022 and initially provided first/last-mile connections to or from four key hubs in the City of Milpitas: (1) Milpitas City Hall, (2) Milpitas Transit Center, (3) Great Mall, and (4) VTA Alder Station. Riders could book trips from any one of nearly a hundred virtual stops across the City to any of these four hubs and vice versa. Despite the City’s extensive marketing and outreach efforts, ridership for the service remained low through February at approximately 5 passengers per weekday. Furthermore, staff received significant community feedback requesting direct access to key destinations outside the hubs including the Milpitas Library and Milpitas High School.

To meet this demand and increase ridership, City staff requested and received VTA approval to transition Milpitas SMART from a hub-and-spoke to a point-to-point service model. In February 2023, the City implemented this service change. On August 8, 2023, the City Council approved amendments to the funding agreement with VTA and subscription and services agreement with RideCo and authorized the City Manager to execute the amended agreements to reflect this service change. 307
Item # 17.

Analysis:

Program Update

Ridership
Since transitioning to a point-to-point service model in February 2023, ridership has increased dramatically each month. Under the hub-and-spoke model, Milpitas SMART averaged approximately 82 passengers per month. In July 2023 alone, Milpitas SMART serviced 1,581 passengers, which is over 19 times higher than the average monthly ridership before the service change. In August, the monthly ridership is projected to exceed 2,500 passengers.

Marketing
City staff has partnered with RideCo to continue initiating a wide range of marketing efforts to increase community awareness of the program and increase ridership, including fare promotions, bus shelter ads near rail stations, bus stop signage throughout the City, digital signs at City Hall and the Milpitas Transit Center, brochures at City recreation and community facilities, social media posts and paid ads, in-person outreach at key locations and City-sponsored events, and outreach to local businesses. Currently, the project team is carrying out a summer marketing campaign and coordinating with the Milpitas Unified School District (MUSD) to market the service to students as the new school year begins.

Project Funding
The project budget for the initial term of 12 months is $1,356,000, which is funded by a combination of grant funds from VTA’s 2016 Measure B Program, developer contributions, and the General Government CIP Fund.

The City anticipates expending $934,000 by the end of the initial 12-month term in mid-September, leaving a remaining balance of $432,000.

Due to the cost savings from the low ridership and associated operating costs in the early months of the program, the City will be able to operate Milpitas SMART for an additional 4 to 5 months beyond the original 12-month program term. The City is also slated to receive $1,600,000 in funding from the State through the Budget Act of 2023 (AB 102) to continue operating Milpitas SMART once VTA grant funds are expended and the initial pilot program ends.

The table below summarizes the project funding based upon the original and new funding and includes Rideco’s estimated fare revenues and costs.

Council Approved Budget for Project initial Term $1,355,916

Spent to-date (Sept. 2022 – July 2023) $814,000
Estimated expenses (Aug 2023 – Sept. 2023) $120,000
Estimated Expenses (for 12-month term) $934,000

Fare Revenue received through July 2023 $7,000
Estimated fare revenue (Aug 2023 – Sept 2023) $3,000
Estimated Fare Revenue (for 12-month term) $10,000

Estimated Project Remaining Funds (Sept 2023) $421,916
Additional State Allocation $1,600,000
Estimated Project remaining funding $2,021,916

308
Item # 17.

Future Program Options
By the end of the initial 12-month term concluding in September 2023, the anticipated total project remaining funding is approximately $2.2 million. City staff is exploring program updates to improve Milpitas SMART and better serve the Milpitas community and is seeking feedback from the City Council on the future direction of the program. If the City were to continue operating Milpitas SMART without any changes, the program is expected to be funded through September 2025.

Service Hours Expansion
City staff is considering two options for expanding the services hours into the early mornings, late evenings, and weekends to capture demand for new types of trips including early morning commutes, evening dining, and recreational activities.

Option 1 (Recommended): Extend weekday service from 7am-7pm to 6am-9pm and add Saturday service 7am-9pm
This option would better utilize vehicle revenue hours by reallocating periods of excess supply while maintaining service levels. As a result, although the service would operate 29 more hours per week, the additional cost would amount to only 12 vehicle revenue hours per week. The funding duration would be reduced by 2 months from the baseline scenario under the current service parameters.

Option 2: Option 1 + Sunday service 7am-9pm
The vehicle operator currently does not provide Sunday service. Therefore, there are less efficiencies to be gained through this option, which would cost 43 vehicle revenue hours per week and reduce the funding duration by 4 months.

Fleet Conversion
Based on previous feedback from the City Council and community input, City staff is considering two options for converting the current fleet into electric vehicles to minimize greenhouse gas emissions and the impact of Milpitas SMART on the environment. Electric vehicle hourly rates are expected to be about 40 percent more than current rates (from $58.65 to about $88). Additionally, electric vehicles can only operate for 6 hours per day without charging. Therefore, roughly double the vehicle fleet would be necessary to maintain current service levels.

Option 1 (Recommended): Replace 1 vehicle with 2 electric minivans in January 2024 This option would reduce the funding duration by 1 month.

Option 2: Replace all 6 vehicles with 12 electric minivans in January 2024 This option would reduce the funding duration by 7 months.

Option 3: Hybrid vehicles
As an alternative to fully electric vehicles, hybrid vans could be considered. Hybrid hourly rates are quoted to be about 30 percent more than current rates (from about $58.65 to about $77). Hybrid vehicles can operate all day without needing to recharge. Replacing all vehicles with hybrid vehicles in January 2024 would reduce the funding duration by 4 to 5 months.

309
Item # 17.

Fares and Promotions
In response to City Council feedback heard at the August 8, 2023 meeting, City staff in coordination with RideCo evaluated two options in analyzing the potential impact on the project budget. The current standard fare is $2.50 per ride, but the program offers a reduced fare of $1.00 per ride for youth, seniors, disabled, and low-income persons. The City of Morgan Hill operates a similar micro-transit program through RideCo with the same fares. Silicon Valley Hopper, which is another micro-transit program that services Cupertino and Santa Clara, charges $3.50 per ride but offers a discounted fare of $1.75.

Option 1: Offer free fares for 4 months
Option 2: Offer free fares for the duration of the project

Fares account for about 10 percent of Milpitas SMART’s operational funding. As such, offering free fares, whether for 4 months or the duration of the project, would reduce the funding duration by around 1-2 months.

However, long-term free fares may have unintended consequences:

1. Consequence-free behavior such as excessive cancellations and no shows may result in operational inefficiencies and impact the timeliness and convenience of the service other users.

2. Passengers may have a difficult time adapting to charged fares if/when they are reintroduced, which will be necessary for the long-term viability of the service.

Furthermore, the City offered free rides for all of April, and while the monthly ridership increased in April, the ridership did not experience a significant decrease in May once the free fares ended. In fact, the monthly ridership continues to increase each month, demonstrating that users are willing to pay for this service.

Additionally, the long-term goal is to establish a sustainable funding model using a combination of grants, contributions from employers and developers, City funds, and fare revenue to continue operating Milpitas SMART into the foreseeable future.

Next Steps
Following this discussion, staff will return with an updated subscription and services agreement with RideCo to reflect the program updates based on Council’s direction. The City will also need to negotiate an updated agreement with VTA to continue our partnership in marketing the service and integrating Milpitas SMART into VTA’s broader transit system.

Policy Alternatives:

Alternative 1: Do not accept $1,600,000 in State funding through the Budget Act of 2023 (AB 102) for the Milpitas SMART program.

Pros: In rejecting $1,600,000 in State funding, the Milpitas SMART program would potentially end, and the City would avoid expending staff time and resources to manage the program.

Cons: If the City were to reject $1,600,000 in State funding, the City would have to commit more staff time and resources to secure alternative external funding sources or expend City resources to continue the program. If the City is unable to secure funding for the program, the program would end, and an important and valuable service would be eliminated. Current users who rely on the service to commute to work, visit key destinations, and complete daily trips would have to turn to other more expensive and less convenient transportation options.

Reason not recommended: The $1,600,000 in State funding would allow the City to continue operating Milpitas SMART into 2025. Without this funding, the City would have to commit more staff time and resources to secure alternative funding and risk having to end the program altogether. With the success of the point-to-point service model, continued marketing efforts, and potential expansion of the services hours, the ridership is expected to continue increasing if the program were to be extended. Milpitas SMART provides a valuable and much- needed service to Milpitas’ residents, employees, and visitors. Furthermore, the General Plan includes several policies to promote alternative modes of transportation, first/last-mile solutions, and public transit improvements to support the City’s circulation goals. The receipt and use of State funding to continue operating Milpitas SMART supports these General Plan policies and goals.

310
Item # 17.

Fiscal Impact:

The City will receive $1,600,000 in funding from the State through the Budget Act of 2023 (AB 102) to operate Milpitas SMART for another year once VTA grant funds are expended and the initial pilot program ends. The extension of the Milpitas SMART program will require approval of a budget appropriation of $1,600,000 in State funding into Project No. 3493 Milpitas SMART.

California Environmental Quality Act:

Not applicable. The selection and contractual arrangement of planning services do not constitute a project, in accordance with Section 15378 of the CEQA Guidelines.

Recommendation:

1. Accept $1,600,000 in State funding through the Budget Act of 2023 (AB 102) for the Milpitas SMART program and approve a budget appropriation of $1,600,000 in State funding into CIP Project No. 3493 Milpitas SMART.

2. Receive a presentation on the current Milpitas SMART pilot program and provide direction on staff recommendations for proposed program modifications.

Attachment:

1. Monthly KPI Summaries Report

2. Budget Change Form

3. Updated CIP Project No. 3493
311
Item # 17.

Month # Riders # New Riders # Repeat Riders Avg. Rides Per Rider
# Passengers
Completed
# Rides
Completed
Shared Rides
(%)
Avg. Shared
Fare Occupancy
Avg. Daily User
Conversion Rate
(%)
Avg. Ride Rating
% Rides With 1-2
Star Ratings and
Comments
# Abandoned
Rides
Pickup
Violations (%)
Dropoff
Violations (%)
# Unique Users That
Experienced Failed
Search
Passengers Per
Vehicle Hour
(PVH)
2023-07 281 152 129 4.9 1581 1372 26% 2.1 68% 4.900 0% 0 2% 1% 12 1.3 2023-06 228 129 99 5.2 1393 1185 24% 2.1 65% 4.893 0% 0 2% 1% 13 1.1 2023-05 179 111 68 5.8 1155 1036 26% 2.1 62% 4.887 1% 0 2% 2% 9 0.9 2023-04 107 75 32 6.6 830 701 21% 2.1 65% 4.911 0% 1 5% 2% 4 0.7 2023-03 44 25 19 5.3 242 232 15% 2.1 71% 4.890 0% 0 3% 2% 6 0.2 2023-02 19 6 13 4.2 83 80 5% 2.0 50% 4.873 1% 0 4% 5% 0 0.1 2023-01 14 5 9 4.2 64 59 7% 2.0 59% 4.820 2% 1 0% 0% 0 0.0 2022-12 13 7 6 4.3 56 56 0% 0.0 58% 4.947 0% 0 0% 0% 1 0.0 2022-11 15 10 5 5.4 85 81 2% 2.0 55% 4.841 1% 0 0% 2% 5 0.1 2022-10 10 4 6 5.2 53 52 0% 0.0 37% 4.977 0% 0 4% 2% 0 0.1 2022-09 23 23 0 4.0 150 93 26% 2.0 37% 4.854 0% 0 4% 6% 2 0.2 Monthly KPI Metric Summaries Report
Milpitas SMART
312
Item # 17.

City of Milpitas, California

BUDGET CHANGE FORM

From (Credit) To (Debit)
Type of Change

Account

Amount

Account

Amount
Check one:

 Budget
Appropriation
 Budget Transfer

331-951-3493-15-3569

$1,600,000

331-951-3493-2-4800

$1,600,000

Background:

In November 2016, Santa Clara County voters approved the 2016 Measure B ballot measure, a 30-year half-cent countywide sales tax to enhance transit, highways, expressways and active transportation programs for bicycles and pedestrians. The Santa Clara Valley Transportation Authority (VTA) established the 2016 Measure B Innovative Transit Service Models Program to provide approximately $6 million in funding to eligible cities through a competitive grant application process.

City staff in partnership with RideCo, a transportation consulting firm that provides on-demand transit solutions, submitted a grant application for funding through the Innovative Transit Service Models Program to develop and implement Milpitas SMART, a 12-month pilot program to provide a flexible, convenient first/last-mile transit solution with convenient connections to VTA light rail and the Milpitas Transit Center. On March 4th, the VTA Board of Directors approved the recommended projects, including Milpitas SMART, and authorized the General Manager to execute the necessary agreements. The City of Milpitas was awarded the full amount of the grant request in the amount of $1,084,732. On April 5, 2022, the City Council authorized the City Manager to execute a funding agreement with VTA to receive this funding and a subscription and services agreement with RideCo in a not-to-exceed amount of $1,355,916 for consultant services to operate Milpitas SMART.

Milpitas SMART launched on September 12, 2022 and initially provided first/last-mile connections to or from four key hubs in the City of Milpitas: (1) Milpitas City Hall, (2) Milpitas Transit Center, (3) Great Mall, and (4) VTA Alder Station.

Riders could book trips from any one of nearly a hundred virtual stops across the City to any of these four hubs and vice versa. Despite the City’s extensive marketing and outreach efforts, ridership for the service remained low through February at approximately 5 passengers per weekday. Furthermore, staff received significant commu nity feedback requesting direct access to key destinations outside the hubs including the Milpitas Library and Milpitas High School.

To meet this demand and increase ridership, City staff requested and received VTA approval to transition Milpitas SMART from a hub-and-spoke to a point-to-point service model. In February 2023, the City implemented this service change. On August 8, 2023, the City Council approved amendments to the funding agreement with VTA and subscription and services agreement with RideCo and authorized the City Manager to execute the amended agreements to reflect this service change.

Analysis:

Program Update

Ridership
Since transitioning to a point-to-point service model in February 2023, ridership has increased dramatically each month.

Under the hub-and-spoke model, Milpitas SMART averaged approximately 82 passengers per month. In July 2023 alone, Milpitas SMART serviced 1,581 passengers, which is over 19 times higher than the average monthly ridership before the service change. In August, the monthly ridership is projected to exceed 2,500 passengers.

313
Item # 17.

Marketing
City staff has partnered with RideCo to continue initiating a wide range of marketing efforts to increase community awareness of the program and increase ridership, including fare promotions, bus shelter ads near rail stations, bus stop signage throughout the City, digital signs at City Hall and the Milpitas Tr ansit Center, brochures at City recreation and community facilities, social media posts and paid ads, in-person outreach at key locations and City-sponsored events, and outreach to local businesses. Currently, the project team is carrying out a summer marketing campaign and coordinating with the Milpitas Unified School District (MUSD) to market the service to students as the new school year begins.

Project Funding
The project budget for the initial term of 12 months is $1,356,000, which is funded by a combination of grant funds from VTA’s 2016 Measure B Program, developer contributions, and the General Government CIP Fund. The City anticipates expending $934,000 by the end of the initial 12-month term in mid-September, leaving a remaining balance of $432,000.

Due to the cost savings from the low ridership and associated operating costs in the early months of the program, the City will be able to operate Milpitas SMART for an additional 4 to 5 months beyond the original 12 -month program term.

The City is also slated to receive $1,600,000 in funding from the State through the Budget Act of 2023 (AB 102) to continue operating Milpitas SMART once VTA grant funds are expended and the initial pilot program ends.

The table below summarizes the project funding based upon the original and new funding and includes Rideco’s estimated fare revenues and costs.

Council Approved Budget for Project initial Term $1,355,916

Spent to-date (Sept. 2022 – July 2023) $814,000
Estimated expenses (Aug 2023 – Sept. 2023) $120,000
Estimated Expenses (for 12-month term) $934,000

Fare Revenue received through July 2023 $7,000
Estimated fare revenue (Aug 2023 – Sept 2023) $3,000
Estimated Fare Revenue (for 12-month term) $10,000

Estimated Project Remaining Funds (Sept 2023) $421,916
Additional State Allocation $1,600,000
Estimated Project remaining funding $2,021,916

Future Program Options
By the end of the initial 12-month term concluding in September 2023, the anticipated total project remaining funding is approximately $2.2 million. City staff is exploring program updates to improve Milpitas SMART and better serve the Milpitas community and is seeking feedback from the City Council on the future direction of the program. If the City were to continue operating Milpitas SMART without any changes, the program is expected to be funded through September 2025.

Service Hours Expansion
City staff is considering two options for expanding the services hours into the early mornings, late evenings, and weekends to capture demand for new types of trips including early morning commutes, evening dining, and recreational activities.

Option 1 (Recommended): Extend weekday service from 7am-7pm to 6am-9pm and add Saturday service 7am-9pm 314
Item # 17.

This option would better utilize vehicle revenue hours by reallocating periods of excess supply while maintaining service levels. As a result, although the service would operate 29 more hours per week, the additional cost would amount to only 12 vehicle revenue hours per week. The funding duration would be reduced by 2 months from the baseline scenario under the current service parameters.

Option 2: Option 1 + Sunday service 7am-9pm
The vehicle operator currently does not provide Sunday service. Therefore, there are less efficiencies to be gained through this option, which would cost 43 vehicle revenue hours per week and reduce the funding duration by 4 months.

Fleet Conversion
Based on previous feedback from the City Council and community input, City staff is considering two options for converting the current fleet into electric vehicles to minimize greenhouse gas emissions and the impact of Milpitas SMART on the environment. Electric vehicle hourly rates are expected to be about 40 percent more than current ra tes (from $58.65 to about $88). Additionally, electric vehicles can only operate for 6 hours per day without charging.

Therefore, roughly double the vehicle fleet would be necessary to maintain current service levels.

Option 1 (Recommended): Replace 1 vehicle with 2 electric minivans in January 2024 This option would reduce the funding duration by 1 month.

Option 2: Replace all 6 vehicles with 12 electric minivans in January 2024 This option would reduce the funding duration by 7 months.

Option 3: Hybrid vehicles
As an alternative to fully electric vehicles, hybrid vans could be considered. Hybrid hourly rates are quoted to be about 30 percent more than current rates (from about $58.65 to about $77). Hybrid vehicles can operate all day without needing to recharge. Replacing all vehicles with hybrid vehicles in January 2024 would reduce the funding duration by 4 to 5 months.

Fares and Promotions
In response to City Council feedback heard at the August 8, 2023 meeting, City staff in coordination with Ride Co evaluated two options in analyzing the potential impact on the project budget. The current standard fare is $2.50 per ride, but the program offers a reduced fare of $1.00 per ride for youth, seniors, disabled, and low -income persons. The City of Morgan Hill operates a similar micro-transit program through RideCo with the same fares. Silicon Valley Hopper, which is another micro-transit program that services Cupertino and Santa Clara, charges $3.50 per ride but offers a discounted fare of $1.75.

Option 1: Offer free fares for 4 months
Option 2: Offer free fares for the duration of the project

Fares account for about 10 percent of Milpitas SMART’s operational funding. As such, offering free fares, whether for 4 months or the duration of the project, would reduce the funding duration by around 1-2 months. However, long-term free fares may have unintended consequences:

1. Consequence-free behavior such as excessive cancellations and no shows may result in operational inefficiencies and impact the timeliness and convenience of the service other users.

2. Passengers may have a difficult time adapting to charged fares if/when they are reintroduced, which will be necessary for the long-term viability of the service.

Furthermore, the City offered free rides for all of April, and while the monthly ridership increased in April, the ridership did not experience a significant decrease in May once the free fares ended. In fact, the monthly ridership continues to increase each month, demonstrating that users are willing to pay for this service. Additionally, the long-term goal is to establish a sustainable funding model using a combination of grants, contributions from employers and developers, City funds, and fare revenue to continue operating Milpitas SMART into the foresee able future.

Next Steps
Following this discussion, staff will return with an updated subscription and services agreement with RideCo to reflect the program updates based on Council’s direction. The City will also need to negotiate an updated agreement with VTA to continue our partnership in marketing the service and integrating Milpitas SMART into VTA’s broader transit system.

Policy Alternatives:
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Item # 17.

Alternative 1: Do not accept $1,600,000 in State funding through the Budget Act of 2023 (AB 102) for the Milpitas SMART program.

Pros: In rejecting $1,600,000 in State funding, the Milpitas SMART program would potentially end , and the City would avoid expending staff time and resources to manage the program.

Cons: If the City were to reject $1,600,000 in State funding, the City would have to commit more staff time and resources to secure alternative external funding sources or expend City resources to continue the program. If the City is unable to secure funding for the program, the program would end, and an important and valuable service would be eliminated. Current users who rely on the service to commute to work, visit key destinations, and complete daily trips would have to turn to other more expensive and less convenient transportation options.

Reason not recommended: The $1,600,000 in State funding would allow the City to continue operating Milpitas SMART into 2025. Without this funding, the City would have to commit more staff time and resources to secure al ternative funding and risk having to end the program altogether. With the success of the point-to-point service model, continued marketing efforts, and potential expansion of the services hours, the ridership is expected to continue increasing if the program were to be extended. Milpitas SMART provides a valuable and much-needed service to Milpitas’ residents, employees, and visitors. Furthermore, the General Plan includes several policies to promote alternative modes of transportation, first/last-mile solutions, and public transit improvements to support the City’s circulation goals. The receipt and use of State funding to continue operating Milpitas SMART supports these General Plan policies and goals.

Fiscal Impact:

The City will receive $1,600,000 in funding from the State through the Budget Act of 2023 (AB 102) to operate Milpitas SMART for another year once VTA grant funds are expended and the initial pilot program ends. The extension of the Milpitas SMART program will require approval of a budget appropriation of $1,600,000 in State funding into Project No. 3493 Milpitas SMART.

California Environmental Quality Act:

Not applicable. The selection and contractual arrangement of planning services do not constitute a project, in accordance with Section 15378 of the CEQA Guidelines.

Recommendation:

1. Accept $1,600,000 in State funding through the Budget Act of 2023 (AB 102) for the Milpitas SMART program and approve a budget appropriation of $1,600,000 in State funding into CIP Project No. 3493 Milpitas SMART.

2. Receive a presentation on the current Milpitas SMART pilot program and provide direction on staff recommendations for proposed program modifications.

Attachment:

1. Monthly KPI Summaries Report

2. Budget Change Form

3. Updated CIP Project No. 3493

 Check if City Council Approval required. Meeting: September 5, 2023

Requested by: Department Head: Jay Lee Date: September 5, 2023 Reviewed by: Finance Director: Lauren Lai Date: September 5, 2023 Approved by: Acting City Manager: Ned Thomas Date: September 5, 2023

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

FI/24786/V Form 30-222 (Rev. 1/92)
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Item # 17.

Notes
N/A City of Milpitas
Implementation
City Council Priorty:

Project Location:

This project provides for a pilot program to provide micro-transit connection services throughout Milpitas. The demand-responsive transit service initially operated as a “hub and spoke” model, an innovative service model that functions as a hybrid between first-last mile and point-to-point service. Riders were able to book trips from any one of nearly a hundred virtual stops across the City to any of the “hubs” locations. Now, riders can book trips from any virtual stop to another virtual stop within Milpitas, similar to other ride-hailing services. For example, riders can book trips from their home to anywhere within the City and vice versa.

On 4/5/2022, City Council approved a funding agreement with the Santa Clara Valley Transportation Authority (VTA) for the 2016 Measure B Innovative Transit Service Models Program and subscription and service agreement with RideCo. The pilot program started in September 2022 and was set to end in September 2023.

The City expects to receive $1.6 million in State funding through the Budget Act of 2023 (AB 102), which will allow the program to continue beyond the initial program term pending City Council direction.

Estimated Schedule :

Design
Construction
Reoccuring Project:
2022-2024
Description
Managing Department:

Contract Person:

Project Stage:

Community Improvement Projects
Milpitas OnDemand 3493
Project No.

Category:

No
Community Improvement
Transportation and Transit
Citywide
Planning
Ned Thomas [3273]/Jay Lee
[2713]
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Project No. 3493
4/5/2022
Estimated Cost
Phase Prior Year FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 Total Administration 1,355,916 1,600,000 0 0 0 0 2,955,916 TOTAL $1,355,916 $1,600,000 $0 $0 $0 $0 $2,955,916
Funding Source
Prior Year FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 Total Measure B 1,084,732 - 0 0 0 0 1,084,732 Grants/Reimb./Dev
eloer fees 200,000 1,600,000 0 0 0 0 1,800,000 General
Government CIP
Fund 71,184 - 0 0 0 0 71,184
TOTAL $1,355,916 $1,600,000 $0 $0 $0 $0 $2,955,916
Finance Notes
Operating Impact Notes
City of Milpitas N/A
Community Improvement Projects
Milpitas OnDemand
This project may impact operating expenses in future years. As the scope of this project is better defined through the design process, operating impacts will be reviewed and adjustments may be brought forward in future budgets.

Council
Approval
City Council 4/5/2022 - Project created with Budget Appropriation of $1,084,732 from Measure B Innovative Transit Service Models Program Funds, $200,000 from Developer Fees and $71,184 from General Government CIP Fund for a total of $1,355,916. Developer Fees: contribution from Embarcadero Capital Partners and Bridge Development (235 N. McCarthy Blvd).

Uncommitted Balance
as of 5/31/2023
$0
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